Renren Widens Loss In Q3 To $15.4M

Summary: Chinese social networking company gets hit by higher costs and lower ad spend, and expects investments to "continue to outpace monetization" in the near term.

China social networks organization Renren has revealed a broader net reduction for its third one fourth due to a rise in information investment strategies and activity development costs.

On Wed, Renren published a net loss of US$15.4 billions, compared with a net loss of US$1.2 billions in the corresponding interval last season.

This was despite a 47.2 % year-over-year improve in complete income at US$50.4 billions. This was drawn down by cost of earnings which nearly tripled to US$19.5 billions.

Higher value included, reduced advertising
Growth came mostly from Internet value-added services (IVAS) which provided US$33.4 billions, which was a 129.3 % improve from the corresponding interval of 2011.

Online activity earnings brought in US$24.2 billions which was a 120 % improve. Renren described this was motivated by the growing popularity of several new in-house developed games which were recently released.

Its group buy service, Nuomi, obtained US$4.6 billions in income.

However, its other key arm on the internet promotion provided US$17 billions, down by 13.7 %. Renren linked the reduce to reduced spending by brand promoters "in a smoother macro-environment, paired by accelerating competitors and ongoing migration of Renren's traffic from PC to mobile".

However, Renren chair and CEO John Chen, outlined that the organization had a "solid one fourth of customer growth".

"Our real-name users list ongoing to show healthy year-over-year development of 25 %, as complete triggered customers this one fourth achieved over 172 billions, an improve of 35 billions customers from the same interval a season ago," Chen said.

"Monthly unique log-in customers also achieved 48 billions in the month of Sept, comprising a 27 % development year-over-year," Chen included.

Renren's Primary Financial Official Huang Hui mentioned that the organization's "investments will continue to outpace the money making improvement in the near-term" but it continues to be dedicated to build long-term value.

Share this article :
Support :. Copyright © 2015. The Technology Zone - All Rights Reserved
Template Created By Gourav Kashyap Proudly Powered By Blogger