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Zynga Revenue Grows, Profit Down on New Investments

(Reuters) – Zynga reported an 80 percent rise in quarterly revenue, while net income fell as the online game company invested in staff, technology and new games.

The top maker of Facebook games posted revenue on Friday of $307 million. Its net income fell 43 percent to $13 million, according to a regulatory filing on Friday.

Total costs and expenses rose to about $275 million from $136.4 million a year earlier.

Zynga is one of the latest companies in a clutch of social media and online startups such as LinkedIn, Pandora Media and Groupon to make a highly anticipated public debut. The company plans to go public before the U.S. Thanksgiving holiday on November 24, according to sources.

Shares of daily deals site Groupon rose more than 50 percent in its stock market debut on Friday when it started to trade in late morning — at one point pushing the market value of the company to almost $20 billion.

Zynga, which makes money from selling virtual goods on popular games like Cityville and Farmville, also offered new insight on the number of players, some 6.7 million who shell out on average $110 per unique player for the nine months ending in September.

That compares to 5.1 million players who paid on average $105 in the same period a year ago.

(Reporting by Jennifer Saba)