Zynga hopes new games put zing back in IPO

Social games maker trying to rebound from steep drop in profits as public offering awaits

Two weeks after announcing a 95% drop in sequential quarterly earnings, social games maker Zynga on Tuesday unveiled a several new Facebook games as well as additional platforms for existing titles.

Zynga filed for an initial public offering on July 1, saying it planned to raise up to $1 billion.

But the company announced later in the summer that it was delaying an IPO because of shaky market conditions.

Then, on Sept. 26, Zynga reported profits of only $1.3 million in the quarter ending in June, down 95% from the $27.2 million in the previous quarter. Zynga said the decline in net income was due to the lack of any new game launches until March 31, as well as higher growth-related expenses.

Now the company has new blood in the pipeline, including the latest from its lucrative "Ville" franchise.

"CastleVille" follows FarmVille, FrontierVille, and CityVille in Zynga's popular social genre. In the six months ending June 30, FarmVille and FrontierVille accounted for $193.7 million of the $271.5 million increase in online game revenue from the year-ago period, so it's fair to say that Zynga has a lot riding on CastleVille.

The company unveiled two other games for Facebook: Zynga Casino and Hidden Chronicles.

Zynga also announced that Mafia Wars 2 is now available on Google+.

The revenue from these games won't show up in an SEC filing until late this year. Given that Zynga recently took out a $1 billion line of credit, it's safe to say that the social games company is content to push its IPO back to sometime next year when, hopefully, the trading weather will be nicer.

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