Zynga profits nosedive by 95 percent

The grandaddy of social network gaming has checked its suspiciously bubble-like pace for the first time.

Zynga's latest quarterly financial filings, as reported by Gamasutra, reveal the Farmville and Mafia Wars publisher's profits dropped year-on-year by 95 percent, from $27.2 million to $1.3 million.

In revenue terms, Zynga saw a 15 percent increase, a less stellar performance than its March posting of 24 percent growth.

More concerning than a decline in growth is a pair of twinned decreases - Zynga's monthly average users dropped by four percent in the last quarter, and so did its virtual goods sales, down from $286.6 million to $274.7 million.

Zynga noted increased competition, the transition to Facebook credits with accompanying 30 percent revenue share, and lack of new releases as factors contributing to a less than brilliant quarter.

Zynga is set to make its initial public offering shortly, and is seeking $1 billion in the process.

Thanks, Destructoid.