Renren eyes mobile growth as losses continue
Chinese online social-networking giant Renren plans to focus on developing its mobile operations this year after logging its second consecutive quarterly loss.
The Beijing-based, New York-listed company, which had 162 million activated users as of June 30, yesterday reported a second-quarter net loss of US$24.94 million, from a net profit of about US$800,000 a year earlier. It attributed the result to lower advertising sales, increased bandwidth investments and higher operating expenses.
The net loss offset a 47.5 per cent rise in revenue to US$44.82 million from the previous year.
Renren posted a net loss of US$13.6 million in the first quarter that spoiled a 56 per cent revenue growth to US$32.08 million in the same period.
'Brand advertising remained challenging because of macro conditions, increased competition and the continued migration of our user traffic from personal computers to mobile devices,' chairman and chief executive Joseph Chen said.
In a call with analysts, Chen said intense competition in domestic online social-networking had led to consolidation among market players. He vowed that Renren would be 'a consolidator' in the market, while its 'strategy remains focused on mobile opportunities' to boost revenue.
The firm's mobile platform includes gaming, advertising and e-commerce, through its Nuomi.com social commerce site.
Market research firm Niko Partners forecasts the mainland will have 192 million mobile game players by the end of this year.
Renren chief financial officer Huang Hui said third-quarter revenue was expected to grow 43 per cent to 49 per cent year on year.