Compared to the previous year, the profit of the Chinese social media platform Renren decreased by 42% and amounted to $25 million. Revenue from sales of online games is $15.1 million, which is 27% less than in the same period in 2013.
Chinese social media platform Renren has published an unaudited report for the second quarter of 2014. It can be concluded from the report that the company’s profitability has decreased for the current financial year. Revenue from online games decreased by 27% compared to the same period of time in 2013 and amounted to only $15.1 million. Operating losses, on the contrary, increased from $26 million to $30.4 million.
Nevertheless, the company managed to gain $86 million from sales of short-term investments, and therefore net profit amounted to $31.3 million.
Renren’s revenue for the period from April to June, therefore, is equal to $239 million in cash and their equivalent.
Renren is sure that the decline in the company’s revenues is due to the fact that many of its projects have reached the “maturity” phase, and their reorganization at the end of 2013 did not lead to significant results.
CEO Joseph Chen reports that earlier this year Renren changed its strategy in the hope of attracting a younger audience, including college students. The company is also going to revise the policy of monetization of its assets in order to increase their profitability. The measures, the CEO hopes, will help the company become more financially successful.