Category Archives: Business

Latest Business news, company earnings, company acquisitions news. Get business and company news about various companies.

Zynga Q3 2012 Earnings: $317M Revenue, 317M Users

Zynga just announced its earnings for Q3 2012, with revenue of $317 million, up 3% year-over-year, and a net loss of $53 million. It has had a rocky quarter, with its stock pricing dipping to an all time low. It is currently valued just slightly more than its cash reserves and securities, which indicates how much investors really believe in its future earnings potential.

Mark Pincus, CEO and Founder, Zynga, said:

“While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming. We’re implementing a number of steps to drive long-term growth and profitability. The successful launches of FarmVille 2 and ChefVille in the third quarter demonstrate that when we develop great games, our large player audience engages. It’s more clear than ever that along with search, shop, and share, play is a fundamental pillar of the Internet, and Zynga continues to be the leader.”

While Zynga is still light years ahead of its competition in terms of user numbers, it hasn’t been able to monetize them that well, and is seeing very high churn.

By struggling to launch new hits, but mainly by acquisitions, it has managed to increase its monthly active users to 311 million, and its daily active users to 60 million.

It has also seen good numbers for its latest games – ChefVille and FarmVille 2, while some others have crashed and burned.

Here’s a list of business highlights by Zynga:

  • Daily active users (DAUs) increased from 54 million in the third quarter of 2011 to 60 million in the third quarter of 2012, up 10% year-over-year.
  • Monthly active users (MAUs) increased from 227 million in the third quarter of 2011 to 311 million in the third quarter of 2012, up 37% year-over-year.
  • Monthly unique users (MUUs) increased from 152 million in the third quarter of 2011 to 177 million in the third quarter of 2012, up 17% year-over-year.
  • Average daily bookings per average DAU (ABPU) decreased from $0.058 in the third quarter of 2011 to $0.047 in the third quarter of 2012, down 19% year-over-year.
  • Monthly Unique Payers (MUPs) decreased from 4.1 million in the second quarter of 2012 to 3.0 million in the third quarter of 2012, down 28% sequentially, largely driven by Draw Something.

In related news, Zynga laid off more than 100 employees from its Boston office, shutting down its The Ville and Bingo teams in Austin. Both these games had seen user numbers plummet in the last couple of months.

However, there was also good news. Zynga finally announced a real-money gambling partnership in the UK. It will be tying up with bwin.party, and power real-money gambling on Zynga Casino, its platform for online games like Poker and other casino offerings.

It is also focusing on building an ad platform to monetize its massive user base, and also incentivize other developers to work with Zynga and promote their apps. It may also open it to other developers by integrating it with Zynga Platform.

via  Zynga – SEC

Netflix Q3 2012 Earnings: $905 M in Revenue, $8 M in Profit

Netflix announced its earnings for the third quarter of 2012, and its stock price has fallen nearly 10% after it slashed its subscriber estimates for the year. It generated around $905 million in revenues last quarter, and made a net profit of $7.7 million. It ended the quarter with around $370 million in cash and cash equivalents.

It added around 1.85 million net streaming subscribers, and its total subscriptions now add up to 25.10 million in the US and 4.31 million internationally. Paid subscriptions account for a large portion of that, with 23.80 million in the US and 3.69 million internationally. Its DVD business continues to shrink as a portion of its overall business.

With the competition in the online streaming space increasing thanks to Hulu, Amazon and HBO, Netflix is trying hard to license more content and also create its own original content.

Reed Hastings wrote in the shareholder letter:

Dear Fellow Shareholders,

In Q3, our global streaming membership grew by nearly 2 million, and our 29 million streaming members enjoyed over 3 billion hours of TV shows and movies from Netflix.

We have compelling exclusive content, an outstanding member experience, and a brand that stands for high quality streaming entertainment. These strengths, combined with the industry-wide forces of improving Internet devices and bandwidth, are fueling our rapid growth around the world.

We believe Internet TV will grow for the next few decades, and that some firms will build extremely valuable businesses providing consumers an incredible, personalized Internet TV experience.

Society has had over 50 years of linear TV dominance where channel owners decide what and when people can enjoy content. With Internet TV, consumers get power, control and convenience. They can decide what, when, and where they want to watch. They can pause and resume anytime. They can enjoy content on a broad range of amazing devices.

Internet TV is the future of television, and we are leading the change.

via SEC – Netflix

LG Reports Q3 2012 Earnings; $10.93 Billion in Revenue

LG announced its earnings for Q3 2012, with its third quarter of “positive net income”, which it apparently considers a big enough achievement to brag about it in its press release. Maybe it is, considering how everyone except Apple and Samsung is getting crushed in the smartphone space. But I digress. Anyway, LG made a net profit of $138.57 million on revenue of $10.93 billion, which was down 4% year-over-year. Its operating profit was $195.06 million.

The revenue split between divisions was as expected.

LG Home Entertainment Company generated third-quarter 2012 sales of $4.84 billion, while LG Mobile Communications Company generated sales of $2.16 billion. LG Home Appliance Company saw its revenue increase to $2.53 billion, while LG Air Conditioning and Energy Solution Company saw sales decline to $859.66 million.

Here’s what most relevant to us from their press release:

“LG Mobile Communications Company improved significantly in the 2012 third quarter, recording operating profit of KRW 22 billion (USD 19.42 million) due in large part to healthy sales of LTE smartphones in Korea, Japan and the United States. In addition, Optimus L-Series continued to expand into 3G markets, contributing to the sales increase. Revenues increased by 5 percent quarter-to-quarter to KRW 2.45 trillion (USD 2.16 billion) as shipments exceeded 14 million units, an increase of 9 percent from the previous quarter. The company expects to further increase its shipments and revenue in the fourth quarter with the global launch of the Optimus G superphone and sales of Optimus Vu: 2 in Korea.”

via LG Newsroom

AT&T Reports Q3 Earnings; Generates $31.5 Billion in Revenue

AT&T has just announced its earnings for Q3 2012, and they seem to be very impressive, which was expected considering that the iPhone 5 launched last quarter. It managed to ship around 6.1 million smartphones in all, with most of them — around 4.7 million — being iPhones. Smartphones acounted for around 81% of its total postpaid sales.

It reported consolidated revenues of $31.5 billion, which is almost the same year-over-year. Both wireless and wireline segments showed steady growth, with a net increase of 678,000 in wireless subscribers. Its total wireless subscriber base is now 105.9 million.

AT&T’s net income for Q3 2012 was around $3.7 billion, while its cash and cash equivalents declined to $2.2 billion.

Randall Stephenson, AT&T Chairman and CEO, said:

“We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks. In wireless, we had another excellent smartphone quarter, penetration of usage-based mobile data plans continues to climb, and our 4G LTE network build is ahead of schedule. And in wireline, our IP network continues to deliver strong gains in U-verse high speed Internet connections, which helped drive an almost 10 percent increase in broadband data ARPU.”

Here’s a snapshot of their performance over the last quarter:

  • Reported consolidated revenues of $31.5 billion, flat versus the year-earlier period
  • Strong 2.6 percent consolidated revenue growth when adjusted for Advertising Solutions
  • AT&T’s growth engines — wireless, wireline data and managed IT services — continue to transform the company’s revenue mix; represented 81 percent of total revenues and grew 6.4 percent versus the same quarter a year ago, led by:
  • 18.3 percent growth in wireless data revenues, up more than $1 billion versus the year-earlier quarter
  • 38.3 percent growth in U-verse revenues
  • 11.4 percent growth in strategic business services revenues

Check out the complete earnings release on AT&T – AT&T Q3 2012 Earnings

Facebook Reports Q3 Earnings; Makes $1.26 Billion in Revenue

Facebook just reported its earnings for Q3 2012, and the numbers are looking good. It reported $1.262 billion in quarterly revenue, with an operating profit of $377 million, and a net loss of $59 million. While revenue growth was impressive at 32% year-over-year, it posted a loss primarily due to a huge tax bill.

Of the total, it generated $1.09 billion from advertising and $176 million from payments and other fees. Its ad business seems to be improving, and there is still ample room for growth, with Facebook yet to figure out an optimum monetization strategy for its massive mobile user base.

Mark Zuckerberg, Facebook founder and CEO, said:

“As proud as I am that a billion people use Facebook each month, I’m also really happy that over 600 million people now share and connect on Facebook every month using mobile devices. People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company.”

Facebook’s monthly active users hit 1.01 billion as of September 30, 2012, while its daily active users increased to 584 million. Mobile monthly active users were around 604 million, and continues to grow at a rapid rate.

It made a number of new releases last quarter — it updated its apps for Android and iOS, upgraded its SDK for developers and launched Facebook Gifts, a ton of new advertising products and completed the Instagram acquisition, which seems to be its best yet.

via Facebook

Yahoo Reports Q3 2012 Earnings, Revenue Tops $1.2 Billion

Yahoo just posted its earnings for the third quarter of 2012, and managed to beat expectations. This was Marissa’s first full quarter as CEO, and Yahoo seems to be moving in the right direction.

Yahoo made $1.217 billion in quarterly revenue, down marginally year-over-year. However, adjusted for traffic acquisition costs, its revenue was $1.072 billion, roughly 2% up year-over-year.

Marissa Mayer, CEO of Yahoo!, said:

“Yahoo! had a solid third quarter, and we are encouraged by the stabilization in search and display revenue. We’re taking important steps to position Yahoo! for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”

The top management has been shuffled quite a bit since Marissa stepped in. Yahoo has made some key hires and redesigned its entire product strategy. It launched quite a few new products and services, and sold some of its stake in Alibaba to raise around $7 billion in cash.

Yahoo’s cash and cash equivalents increased to $7.560 billion by the end of the last quarter.

It reported net income of $3.161 billion, but its actual operating income was only around $152 million. Its stock is up around 5% today.

via Yahoo – PR

Microsoft Reports Earnings: $16 Billion in Revenue, $4.5 Billion in Net Profit

Microsoft has announced its earnings for Q3 2012 (Q1 FY2013). It generated $16.01 billion in quarterly revenue, and operating income of $5.31 billion. It made a net profit of $4.47 billion. The revenue numbers don’t include $1.36 billion in deferred revenue related to Windows 8 upgrades and pre-sales.

Steve Ballmer, Microsoft’s CEO, said:

“The launch of Windows 8 is the beginning of a new era at Microsoft. Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”

Kevin Turner, Microsoft’s COO, said:

“We’re incredibly excited to be approaching general availability of Windows 8 and Windows RT. We’ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooks and all-in-ones to the most powerful desktop computers.”

Microsoft’s Business Division posted $5.5 billion in revenue in the last quarter, a marginal decline of 2% year-over-year. SharePoint, Exchange and Lync continued to show double-digit revenue growth. Operating income was slightly lower at $3.646 billion.

Server and Tools continued to grow, generating around $4.55 billion in quarterly revenue, up 8% year-over-year. Operating income increased to $1.748 billion.

Windows made $3.24 billion in quarterly revenue, down 33% year-over-year. This is expected to show a significant rise this quarter as Windows 8 launches, right before the holiday season. Operating income nearly halved to $1.646 billion.

Online Services was a money sink as usual. It reported revenue of $697 million, up 9% year-over-year, but had nearly $364 million in operating losses.

Entertainment & Devices reported revenue of $1.946 billion, with an operating profit of $19 million. With Windows Phone 8 launching this fall, Microsoft is banking on it to drive revenue growth in the coming quarters, but that seems unlikely.

Microsoft ended the quarter with around $66.6 billion in cash. cash equivalents and short-term investments.

via Microsoft – SEC

Google Q3 2012: Revenue Jumps to $14.1 Billion, Motorola Pressures Earnings

Google reported its earnings for Q3 2012, with rather good numbers, but its stock price has crashed more than 10% as they missed analyst estimates. Its revenues increased 45% year-over-year, to $14.10 billion. The bump in revenue was due to the Motorola acquisition, which contributed $2.575 billion, while its core advertising business accounted for around $11.526 billion.

Its traffic acquisition costs were close to $2.77 billion, which brings its net revenue numbers to $11.33 billion.

However, its net income dropped around 20% to $2.176 billion, as Motorola’s operating losses weighed down on Google’s very profitable business.

Of Google’s core ad revenue, $7.727 billion was contributed by Google’s own web properties, $3.133 billion was contributed by partner websites, while $666 million was classified as revenue from other sources.

Aggregate paid clicks increased 33% year-over-year, but the cost per lick decreased nearly 15%. Overall, Google’s ad business still seems to be expanding, but at a slowing rate.

Motorola may have been Google’s worst purchase to date. It’s still not clear what exactly Google gained by acquiring the lumbering hardware giant.

Google ended the quarter with $16.26 billion in cash and cash equivalents, and another $29.46 billion in marketable securities and short-term investments.

via Google – SEC

Verizon Reports Q3 2012 Earnings; Revenue Up to $29 Billion

Verizon has reported its earnings for Q3 2012. It posted double digit percentage earnings growth yet again, for the third quarter in a row. Verizon’s total operating revenues increased to $29 billion, with its operating income for the quarter increasing to $5.5 billion.

Wireless revenue was $19 billion, up 7.3% year-over-year, while wireline revenue was $9.9 billion, down 2.3% year-over-year, as expected. Wireless margins were at a record high, while FiOS revenue growth led to an increase in the wireline consumer revenue growth.

Verizon added 1.8 million retail connections in Q3, including 1.5 million postpaid connections. The total retail connections increased to 95.9 million, including 90.4 postpaid connections. It also increased the reach of its 4G LTE mobile broadband network to more than 250 million people in 419 markets in the U.S.

Lowell McAdam, Verizon chairman and CEO, said:

“In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year. With our 4G LTE network advantage, well-received Share Everything Plans and unmatched product portfolio, Verizon Wireless continues to do an outstanding job of balancing growth and profitability. Wireless achieved record profitability in a quarter in which we reported the highest number of retail postpaid gross and net adds in four years.

Based on the strength of our FiOS fiber-optic network, we reported the highest growth in U.S. consumer wireline revenues in 10 years. Additionally, strategic services growth in our Enterprise business helped offset weaker revenues caused by global economic challenges. We are confident that we have the right plans in place to meet these challenges while improving the long-term profitability in both Consumer and Enterprise.”

via Verizon – SEC

Nokia Reports Q3 2012 Earnings; $754 Million in Operating Losses

Nokia has reported its earnings for the third quarter of 2012, and they seem to be just as bad as ever. Probably even worse, considering that they should have improved by now. It reported a $754 million operating loss on net sales of $9.49 billion. It sold close to 2.9 million Lumia devices in Q3, 6.5 million Asha full touch units and close to 77 million devices in all. Device sales have been on a decline since a couple of years now, and Nokia’s move to Windows Phone doesn’t seem to be helping smartphone sales much.

Nokia’s CEO, Stephen Elop, said:

“As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis.

In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.

In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And in Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin.

In Location & Commerce, we made progress establishing our platform offering with customers like Amazon. This is in line with our plan to expand our location offering to more customers.

And, Nokia Siemens Networks had a remarkable quarter in which we achieved record profitability on a non-IFRS basis and the Nokia Siemens Networks cash balance increased for the fourth quarter in a row.

While we continue to focus on transitioning Nokia, we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders.”

Nokia ended the quarter with roughly $10 billion in cash and cash equivalents.