Renren narrows net loss on 47% jump in revenues

Chinese social networking site Renren (RENN.NYSE) reported a narrower net loss after revenue rose 47% year-on-year to US$20.6 million in the first quarter, the first period for which Renren reported results as a US-listed company, the Wall Street Journal reported. The company’s net loss shrank to US$2.6 million, or 4 cents per American depositary share (ADS), from US$12.1 million in the first quarter of 2010, when its results were weighed down by a large negative adjustment on the fair value of warrants. Revenues from online value-added services, which includes games and Renren’s group-buying site, Nuomi.com, grew 25% year-on-year to US$12.4 million. For the second quarter, Renren projected revenues to climb to between US$29 million and US$30 million, up to a 51% year-on-year increase. Renren plans to announce a strategic partnership this week between Nuomi and online travel agent eLong (LONG.NASDAQ) on offering hotel bookings to Renren users. The company also plans to pursue investments and acquisitions more aggressively in the next one to two years, and may targets other social-networking services or application developers, Chen said in a separate interview.