Renren invests heavily in mobile services as Q3 game revenue rises 120% to $24 million
But company makes an overall loss of $20.6M
Total net revenues were $50.4 million, up 47 percent year-on-year.
Revenues from online games made up $24.2 million of this total. The segment was up 120 percent year-on-year.
The company made a gross profit of $30.9 million (up 12 percent), but an operating loss of $20.6 million.
Ups and downs
"Our real-name user base continued to show healthy year-over-year expansion of 25 percent, as total activated users this quarter reached over 172 million, an increase of 35 million users from the same period a year ago," said CEO Joseph Chen.
Renren has, however, been hit by the weakness of its brand advertising business and the largescale migration of its PC traffic to mobile.
With the flow
"We also realise that the competitive landscape in the mobile world is quite different from before," Chen added.
"Therefore, our focus and investments will continue to shift towards the mobile opportunities and challenges ahead of us. We want to further deepen and expand upon our core competency in social network services, particularly in the mobile world."
Gaming was a bright spot for the company, with internally developed cross-platform games, in particular, highlighted as showing "very strong momentum".
Renren ended the quarter with cash and cash equivalents of $284 million (down from $456 million 12 months ago).