SAN FRANCISCO (AP) Zynga Inc. whittled its third-quarter losses even as its revenue plunged and fewer people played its digital games.
The improvement raised investors' hopes that the hobbled company might be able to regain its stride under a new CEO hired during the summer, and shares jumped 13 percent in after-hours trading.
The results announced Thursday served as the first report card for Don Mattrick, a respected video-game executive who was overseeing Microsoft's Xbox division until he was hired in July to replace Zynga founder Mark Pincus as CEO of the San Francisco company.
Mattrick is turning to an old colleague to help him in his attempt to engineer a turnaround. Zynga said Thursday that Clive Downie will become its chief operating officer beginning Nov. 4. Downie, 41, is defecting from a mobile game maker called DeNA, but he and Mattrick previously worked together at video game maker Electronic Arts Inc.
Zynga will tap into Downie's expertise in mobile games as it tries to connect with more people on smartphones and tablet computers. The company's biggest hits, such as "FarmVille" and "Mafia Wars," have primarily been played on desktop and laptop computers that have been declining in use.