Renren invests further in mobile gaming as Q1 FY13 losses increase to $27.5 million

Revenues up 45% to $45.5 million

Renren invests further in mobile gaming as Q1 FY13 losses increase to $27.5 million
Chinese real-name social network Renren (NYSE: RENN) has announced its unaudited figures for the 3 months ending 31 March 2013.

Total net revenues were $46.6 million, up 45 percent year-on-year.

The company made an operating loss of $27.5 million, more than the $20.6 million the company lost during Q1 2012.

Now is the time

"As I have always stated, at Renren we take a long-term view in building our business. We also recognise we are at a strategic junction to becoming a true mobile company," said CEO and chairman Joseph Chen.

"The mobile internet is rapidly evolving and we are discovering large opportunities in front of us, but the window for these opportunities is short."

Hui Huang, Renren's CFO added, "In the coming quarters we will look to add resources to our mobile gaming and social commerce businesses, where we plan to make strong advances based on opportunities we are seeing."

Games boom

Revenues from Renren's online and mobile games were up 53 percent, to $26.7 million.

However, this increase came at a cost with the company's R&D expenses up 57 percent to $24 million. The increase was additional staff for general mobile development and game development

The company ended the quarter with cash and equivalents of $112 million, down from $207 million three months ago.

[source: Renren IR]

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