Zynga’s once reliable slots and poker games losing steam

Social gamers Zynga reported a steep decline in earnings and profit in the third quarter along with weakness in its social slots segment and ‘challenges’ facing the venerable Zynga Poker.

On Wednesday, Zynga reported revenue of $233.2m in the three months ending September 30, up 4% from the same period last year, while bookings, the sale of virtual goods within games, rose 17% to $249m. But adjusted earnings slipped 15% to $38m and net income tumbled 44% to $10.2m.

Advertising revenue had a notable quarter, rising 41% year-on-year to a record $65.4m, pushing advertising’s share of overall revenue up seven points to 28%. The company credited the rise to increased player engagement and advertising network optimization.

Zynga’s average daily active users (DAU) were up 8% year-on-year to 22m in Q3, and its average daily bookings per average (DAU) was also up 8% to $0.121. However, its player-to-payer conversion rate fell from 2.4% in Q3 2017 to 2% in the most recent quarter.