The performance of the company continued to decline to abolish the game Research and Development Department

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Yangcheng Evening News reporter Linxi, intern Shenlihong report: Everyone company recently released the latest earnings show, the company's two quarterly revenue of 25 million U.S. dollars, adjusted net profit of 37.4 million U.S. dollars, this year, everyone has been for two consecutive quarters of profit.

However, the Yangcheng Evening News reporter noted that the company's net profit level is higher than the revenue. According to comments, the company has been operating losses for 12 consecutive quarters, and its profit is mainly by selling its assets and investing in other companies. How does it achieve a loss in the case of a number of business underperformance?

Main business performance decline

Earnings show that the company's major business performance has continued to decline, including online advertising revenue of 11.7 million U.S. dollars, down 23.9% year-on-year, other Internet value-added services revenue of 3.4 million U.S. dollars, a year-on-year decline of 35%; The monthly independent login was reduced from 54 million in June 2013 to 44 million in June 2014.

Renren has its own real-name SNS website Renren, network game Platform for everyone, video sharing site 56 network. Renren is undoubtedly at the heart of all this. However, from 2012 to 2013, Renren's subscribers fell from 56 million in December 2012 to 45 million in December 2013, down 20% per cent. The mobile end also presents the same downward trend. In addition, according to the Alexa website released data show that Renren in China's traffic ranking has fallen to the 157th, in the world is falling out of the top 1000, and there is a gradual decline in the trend.

Meanwhile, the company's share price has been sluggish. This year, Renren's share price hovered between 3 and 4 dollars for a long time. The market value of $5.53 billion was in 2011 for everyone. Today, the market capitalisation has evaporated more than $4 billion trillion and is now worth only about $1.2 billion trillion.

Investment Master Stock Loss

Revenues are less than profit, but the reason is that everyone in the two quarter to achieve short-term investment income of 86 million U.S. dollars, and the same period last year for 100,000 U.S. dollars. The growth in the short-term investment income of Renren mainly comes from the sale of securities.

In fact, everyone company "Fry" is not the first time, everyone CEO Chen is the industry rumors of the investment stock master. In the first quarter of this year, the company also achieved short-term investment gains of 27.1 million U.S. dollars, mainly from the sale of securities transactions. At that time, market sources pointed out that the company is mainly through the sale of Qihoo 360 shares to achieve investment income.

In the first quarter of last year's earnings, the company sold some of the previously low-priced buy the "power of the demon stock" only stock, thus making 15 million of dollars. As early as 2011, everyone sold the Art Dragon stock brought a one-time profit of 50.9 million dollars. 2013, everyone will buy website glutinous Rice Net sold to Baidu, also achieved a sum of 130 million dollars income. It is reported that the media has been given to all companies such a name: The only one in the stock of stocks to profit from the company.

Related reports

Descendants game abolished research and development department

Yangcheng Evening News yesterday, a person familiar with the matter said, everyone game recently abolished a large number of research and development Department staff, interested in transformation Agent distribution company.

It is said that everyone game CTO Gurey with the "Heavenly Book Yarn" Research and development team to leave, for independent entrepreneurship. Since then, everyone's game to the company's research and development departments carried out a large number of layoffs, the original 3-storey office area reduced to the current two-tier. A company leadership said that the purpose of layoffs is to abandon their own research business, the transformation of the company into an agent distribution company.

Renren's 2014 Q2 earnings show that the company's game business net revenue of 9.9 million U.S. dollars, down 56.6% from the same period last year, the decline was due to the previous release of the game reached a mature stage, and due to the game business started at the end of 2013 restructuring, resulting in no successful new games released. There is an analysis of the industry, the transformation of everyone's game is intended to change the game through the agency of the quality of the game business decline trend. (Chinese Business Intelligence Network)