Renren tries to reposition as 2013 revenue drops 2% to $157 million

Games unit hit by $3.5 million restructure

Renren tries to reposition as 2013 revenue drops 2% to $157 million

Chinese real-name social network Renren (NYSE: RENN) has announced its unaudited financial results for FY13, the twelve months ending 31 December 2013.

Total revenues were $157 million, down 2 percent year-on-year.

Net income was $64.4 million, compared to a $75 million loss in 2012. This was due to a gain of $133 million in Q4 from the sale of its ecommerce subsidiary Nuomi.

Leaner, meaner

"2013 was an important year of transformation for Renren," said CEO Joseph Chen.

"We have repositioned Renren to be a real-name mobile social network with communication services, focused on our core user base of college students and the young generation. Overall, we have streamlined our businesses and organizations, including divesting Nuomi, in order to concentrate our resources on strengthening our SNS foundation.

"Looking into 2014, we will further invest in our core business and cement our strength in China's university and young user demographics, a segment we have always served best."

Game decline

Like many Chinese online companies, Renren is having to deal with the migration of its users from desktop to mobile.

It's also experience a contraction in active users. Its monthly unique log-in users decreased from approximately 56 million in December 2012 to approximately 45 million in December 2013.

During 2013, Renren saw revenues from its game division decrease 4.5 percent to $85.5 million. Its games business was also hit a restructuring charge of $3.5 million during Q4.

Renren ended the period with cash and equivalents worth $154 million, down $53 million year-on-year.

[source: Renren]

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