China's Facebook, Renren, is Profitable: CEO
The "core business" of China's social networking giant Renren is profitable, Joseph Chen, chairman and CEO of Renren, told CNBC Tuesday.
"We're very confident about the profitable growth of Renren. We've grown the user base by two million for the last two months," Chen said.
The site typically has lower revenues in the first quarter, according to Chen, because of the "large portion of advertising customers in the fast-moving consumer goods industry" that spend more as they introduce new products later in the year.
Renren , often dubbed the Facebook of China, reported a first quarter loss of $2.6 million. That compares to a loss of $12 million from the same period last year.
"We forecasted 35 percent, 40 percent traffic growth this year," he added.
The Beijing-based company sold 53.1 million American Depositary Shares for $14 each, raising $743.4 million. The stock is currently trading at $7.26.
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