Chinese social network Renren sees losses increase

A man plays online games in Beijing Renren said online gaming revenues were better-than-expected

Related Stories

The Chinese social networking site Renren has reported wider losses for the first three months of the year, partly due to weak advertising revenues.

Renren posted a loss of $13.6m (£8.4m) compared to $2.6m in losses for the same period the previous year, the company said.

The firm, which had a share sale last May, runs one of the biggest social-networking sites in China, as well as a daily deals site.

Facebook is not accessible in China.

Advertisers cautious

Renren said it had to raise expenditure on marketing to $17.4m, a 78% increase from last year, mainly on its daily deals site

It also said that its advertising business had not performed as well as expected.

"Our brand advertising business experienced a challenging quarter due to seasonality and the Chinese economy slowdown, resulting in a more cautious approach by new advertisers on our social networking platform," said chief executive Joseph Chen.

However online gaming has proven to be a good alternate source of revenue for the company, Mr Chen said.

"Gaming revenue, driven by the popularity of our recently launched games and mobile gaming efforts, outperformed our expectations, offsetting the weakness in advertising."

Renren said monthly unique users had increased to 40 million by the end of March, up from 31 million a year ago.

It also reported 154 million activated user accounts, up from 117 million.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories



  • Alana Saarinen at pianoMum, Dad and Mum

    The girl with three biological parents

  • Polish and British flags alongside British roadsideWar debt

    Does the UK still feel a sense of obligation towards Poles?

  • Islamic State fighters parade in Raqqa, Syria (30 June 2014)Who backs IS?

    Where Islamic State finds support to become a formidable force

  • Bride and groom-to-be photographed underwaterWetted bliss

    Chinese couples told to smile, but please hold your breath

  • A ship is dismantled for scrap in the port city of Chittagong, BangladeshDangerous work

    Bangladesh's ship breakers face economic challenge

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.