San Fransisco-based Zynga had some positive news for the market this week as they managed to reduce losses from $62.5 million to $26.9 million. The video game developer attributed a lot of this reduction to a 274% growth in mobile slots revenue.
Games such as Hit It Rich, Wizard of Oz and Dusk Dynasty have contributed significantly to the tech company’s bottom line. Players can access Zynga slots through their smart phones using coins bought through the app. Hit It Rich in particular has proved to be a huge success for Zynga, with players flocking to the app to play.
The market reacted favorably to Zynga’s results as shares rose 7% Monday to $2.70. Although it is a far cry from the $14.69 they reached back in 2012. The company also announced that they have settled a law suit with shareholders led by David Lee. The company was accused of defrauding shareholders by withholding information about how many players they were losing and inflating profit expectations. A $23 million settlement has been agreed on, which should help Zynga to put the matter behind them.