Social game giant Zynga has seen its share price plummet following a disastrous earnings report.

The CityVille developer’s shares lost 35 percent of their value in after-hours trading yesterday, after it announced quarterly revenue of US$332 million (AU$322 million) and a net loss of US$22.8 million (AU$22.1 million).

The company had revenue of US$279 million (AU$270 million) and net income of US$1.4 million (AU$1.36 million) a year ago in the same quarter.

That net loss equated to a drop of three cents a share for Zynga, whose shares had been estimated to rise by six cents by many analysts prior to the earnings report.

The company’s stock closed the day at US$5.19 (AU$5.04).

In an effort to maintain momentum, Zynga had launched several new games this quarter, including Bubble Safari and The Ville.

“We … faced new short-term challenges which led to a sequential decline in bookings,” said CEO Mark Pincus said in a statement.

“Despite this, we’re optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web.”

In related news, Pincus announced today that the company will launch its first real-money online gambling poker game in the first half of 2013, provided it can obtain the appropriate licences of course.

As real-money online gambling is illegal in the vast majority of the US, the site will likely be launched outside the States altogether – probably in Europe, where online gambling laws are comparatively relaxed.

While Zynga nets an estimated US$2-3 per user per month in social casino games, real-money online gambling is much more lucrative, with revenues often reaching US$300 per paying user per month.