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Game delays hit Renren as it makes a Q2 2013 operating loss of $34.7 million

Game delays hit Renren as it makes a Q2 2013 operating loss of $34.7 million
Chinese real-name social network Renren (NYSE: RENN) has announced its unaudited financial results for its Q2 period, ending June 30, 2013.

Net revenues were $49.6 million, up 11 percent year-on-year.

Of these, 88 percent were generated by Renren, with the remainder coming from its social commerce site Nuomi.

Gross profit was up 14 percent to $31.7 million but the company made an operating loss of $34.7 million because of higher costs, particularly in terms of marketing.

This compared to an operating loss of $22.2 million a year ago.

Waiting game

As previously stated, Renren said its performance was due to delays in its games pipeline.

"Although we face short-term monetization challenges, we are on track in executing our strategic priorities for the year aimed at securing our position in the highly competitive mobile internet sector in China," said CEO Joseph Chen.

"In particular, our recent frequent upgrades in Renren mobile app continue to strengthen user engagement. This is a pivotal time to make strong advances in the opportunities we are seeing, as we remain committed to the long-term investments placed on our mobile initiatives."

More sharing

In terms of its social network, the number of activated Renren users rose from 162 million a year ago to 194 million at the end of the quarter.

As well as the social network and Nuomi, Renren operates Renren Games, and user-generated video sharing website 56.com

The company ended the quarter with cash and equivalents worth $155 million, compared to $207 million six months ago.

[source: Renren]
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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