Zynga’s latest quarterly earnings report beat expectations, largely due to the outstanding success of its slots games. The company has narrowed its losses considerably since last year as it continues to transform itself into a mobile-centric gaming company.

According to a report from VentureBeat, the company’s reported second-quarter and bookings have seen an increase, with an increase of 274 percent on slots games like Hit It Rich! Slots and Wizard of Oz Slots. Other games like Empires & Allies and FarmVille: Harvest Swap have seen positive attention as well.

Zynga’s numbers have improved since Mark Pincus resumed his role as chief executive earlier this year. There’s still a ways to go before profitability, and sunsetting some of its web games led to an audience drop-off of 23 percent from the previous year. On the positive side, ad revenues were up by 15 percent for the quarter, and the company now derives two-thirds of its revenue from mobile games, up 30 percent from last year. The company reported a non-GAAP net loss of $7.6 million, or one cent a share, on bookings of $174 million. Analysts had expected a non-GAAP net loss of 2 cents a share on bookings of $157 million. There’s still a way to go before returning to the profit side of the ledger.

Still, Pincus, speaking with GamesBeat, remained positive. “We think we can have success executing in other categories, too,” he said. “We re-entered the action-strategy category with Empires & Allies. It’s off to a strong start. It’s a proven team with a terrific engine that they are continuing to tune. They’re launching updates like leagues. We think that is a terrific category that we can make more social and accessible. We can bring a unique ‘special sauce’ to it.”

Web games did see a 15% drop off from the previous quarter as well, including Words With Friends and a Looney Tunes-licensed endless runner game. But, again, Pincus pointed out the plus side. “The story that hasn’t come out enough is our advertising team has been a great growth engine. Our ad business is up 44 percent in the year, and it grew 15 percent in the quarter. It is now a quarter of all bookings. The ad margins are higher because you don’t have payment fees to the platforms. We are bullish on the mobile ad business.”

As far as specific numbers go, Pincus added, “Bing [Gordon, a Zynga board member] reminds me [that] stock price is a trailing indicator of success, not a leading indicator. Profits are a victory lap we get after we deliver results, not before. We want to have empowered entrepreneurs inside our company. Half the battle is to get out of the way, point to the right hill and get out of the way. It’s less about my confidence in my ability to get us there and more about the team. If we create the conditions for success for our teams, empower them, arm them, and point them at the right hill, they are going to do the rest.”

On top of that, the company continues to make certain changes to its staff, recently adding former head of EA Mobile Frank Gibeau to the team of its board of directors.

As for what’s next, Zynga has plenty of games on the horizon, including Dawn of Titans and CSR Racing 2, as well as a slots game based on the popular Willy Wonka and the Chocolate Factory – another tie-in with Warner Bros. following The Wizard of Oz.

More information on the report can be found here.