August 11, 2011 / 10:16 PM / 6 years ago

Renren posts small Q2 profit; Q3 view drags down stock

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<p>China's Renren Inc. Chairman and Chief Executive Officer, Joseph Chen (C) is joined by executives and guests as he rings the opening bell at the New York Stock Exchange, May 4, 2011.Adam Au - NYSE Euronext/Handout</p>

(Reuters) - Chinese social networking site Renren Inc posted a small quarterly profit as online advertisement segment rose, but forecast third-quarter revenue largely below market expectations, sending its shares down 8 percent in aftermarket trade.

For the third quarter, Renren, dubbed as China's Facebook, expects to report revenue of $33.5-$35.5 million while analysts were expecting $35.2 million, according to Thomson Reuters I/B/E/S.

The company reported a net profit of $751,000, or break even per American Depository Share (ADS), compared with a loss of $25.5 million, or 31 cents per ADS, a year ago.

Net revenue rose 53 percent to $30.4 million, beating analysts' estimates of $29.5 million. Online advertising revenue rose 94 percent to $16.9 million.

Shares of Renren fell 58 cents in trading after the bell. The stock closed at $7.78 on Thursday on the New York Stock Exchange.

Reporting by Supantha Mukherjee in Bangalore; Editing by Don Sebastian

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