Renren Q3 2012 Losses Grow to USD 15 Mln
Renren, 11/14/12
Beijing-based social networking site operator Renren (NYSE: RENN) has announced its financial results for the three months ended September 30, 2012. Q3 2012 net revenues were USD 50.4 mln, representing a 47.2% increase YoY from the corresponding period in 2011.
Net loss attributable to Renren was USD 15.4 mln, as compared to a net loss of USD 1.2 mln in the corresponding period in 2011. Excluding results of operations attributable to Nuomi, net loss in the third quarter of 2012 were USD 9.1 mln, as compared to a net income of USD 6.2 mln in the corresponding period of 2011.
Online advertising revenues were USD 17.0 mln, representing a decrease of 13.7% YoY from the corresponding period of 2011. The decrease was due to lower advertising spending by brand advertisers in a softer macro-environment, coupled by intensifying competition and continued migration of Renren's traffic from PC to mobile. The number of Renren's activated users increased from approximately 137 mln as of September 30, 2011 to approximately 172 mln as of September 30, 2012. Monthly unique log-in users increased from approximately 38 mln in September 2011 to approximately 48 mln in September 2012.
Internet Value-Added Services (IVAS) revenues were USD 33.4 mln, representing a 129.3% increase YoY from the corresponding period of 2011. Within IVAS revenues, online game revenues were USD 24.2 mln for the third quarter of 2012, a 120.2% increase YoY from the corresponding period of 2011. The increase in online game revenues during this quarter was due to the growing popularity of several new in-house developed games recently launched. Other IVAS revenues were USD 9.2 mln for the third quarter of 2012, a 157.1% increase YoY from the corresponding period of 2011. Within other IVAS revenues, Renren's social commerce service, Nuomi, recorded USD 4.6 mln of net revenues for the third quarter of 2012.
The company expects to generate revenues in an amount ranging from USD 45 mln to USD 47 mln in the fourth quarter of 2012, representing 37% to 43% YoY growth.
To view the complete report please see here.
Keywords: Internet loss IVAS Renren Nuomi RENN Q3 2012 revenue fiscal report online advertising
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