Renren: Loss Up 423% YoY to USD 13.6 Mn in Q1

Source: Company Disclosure, ChinaScope Financial (Data)

+       The 2012Q1 report of Renren Inc. shows that the company’s net operating revenue was USD 32.1 million, up 56.1% year-on-year. However, the company recorded a net loss of USD 13.6 million, up 423% compared with USD 2.6 million in 2011Q1.

+       In the first quarter, Renren’s revenue from online advertisement was USD 9.3 million, up 14.8% year-on-year, while its operating cost rose 206.6% year-on-year to USD 12.5 million.

Revenue of Renren increasingly rely on social games. Its profitability is deteriorating due to declining margins.

The mobile users are now the key contributor to log-ins and time spent on Renren.

No sign for profiting from Nuomi (Renren’s social group buying website), Renren’s overall profit will continue to be dragged down.

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