Renren continues to struggle in mobile transition; FY13 Q3 sales down 6% to $47.6 million
Net losses widen to $25 million
Chinese real-name social network Renren (NYSE: RENN) has announced its unaudited financial results for its Q3 period, the three months ending 30 September 2013.
Revenues were $47.6 million, down 6 percent year-on-year.
Of this, Renren itself generated $41.1 million (down 10 percent), while $6.5 million came from the Nuomi social commerce site.
Its revenues were up 36 percent
The company made a net loss of $24.6 million, compared to a loss of $15.4 million 12 months ago.Everything's going mobile
Key issues for Renren are that its online advertising business is shrinking (down 11 percent to $14.9 million) as users switch from PC to mobile.
In addition, its online games are now mature and declining in terms of sales, but it is struggling to release mobile games. Renren's gaming unit was down 17 percent with sales of $20.1 million.
Woxiu, the virtual talent show service on the 56.com website is seeing strong growth, however.
Renren saw its activated user total rise from 172 million in Q3 2012 to around 200 million, but it only had 50 million monthly unique users during September 2013.Time to turn?
Discussing the company's performance, CEO Joseph Chen repeated much of what he said about the similarly disappointing Q2 figures.
"While we continue to face short-term monetization challenges, our strategies are becoming more focused and clear," he commented.
"The recent launch of our communication-oriented Renren mobile app tailored for the young generation will help us strengthen our dominance in this important demographic. Meanwhile, the restructuring of our gaming business will also make us more focused on developing high-quality games."
Renren ended the quarter with cash and cash equivalents worth $189 million, down $18.5 million on 12 months ago.