SEA Ltd, which owns e-commerce platform Shopee and game developer Garena, has plunged deeper into the red. The Singapore-based Internet company posted a net loss of US$433.7 million in the second quarter, greater than the US$393.5 million net loss recorded in the same period a year earlier.
Revenue, however, more than doubled to US$2.3 billion for the three months ended June 30, up 158.6 per cent from US$882 million in the previous year, driven by growth in its gaming and e-commerce arms.
Sales in digital entertainment contributed the most to its revenue at US$1 billion, up 166.8 per cent from US$383.9 million in 2020, fuelled by more quarterly paying users and active users on its platform. Quarterly active users grew by 45.1 per cent to 725.2 million, quarterly paying users grew by 84.8 per cent to 92.2 million.
E-commerce and other services contributed US$999.7 million, up from US$364.7 million in the year before, thanks to growing revenue streams - such as transaction-based fees and advertising - in its e-commerce marketplace Shopee.
Sea, which is listed on the New York Stock Exchange, reported an increase in operating expenses during the quarter, rising to US$1.3 billion from US$573.6 million in the same quarter the previous year. About US$921.4 million, or 72.8 per cent, was spent on sales and marketing.
Breaking that down further, Sea spent the most sales and marketing dollars - US$649.2 million - on its e-commerce arm, up from US$268.4 million the year before. The increase was mainly due to "ramping up of marketing incentives and online marketing efforts", in part to capture market opportunities in full, it said.
Total adjusted losses before interest, taxes, depreciation and amortisation (negative Ebitda) was US$24.1 million, compared with adjusted earnings of US$7.7 million a year ago. Ebitda was adjusted for share-based compensation, depreciation and amortisation expenses, as well as the net effect of changes in deferred revenue and its related cost for the digital entertainment segment.
Losses per share excluding share-based compensation was US$0.61, down from US$0.68 in the year before.
On the back of sustained growth, Sea said it is planning to raise its FY2021 guidance for both digital entertainment and e-commerce arms.
Digital entertainment bookings are expected to be between US$4.5 billion and US$4.7 billion, representing 44.4 per cent year-on-year at midpoint. Meanwhile, e-commerce GAAP revenue is expected to be between US$4.7 billion and US$.4.9 billion, representing 121.5 per cent year-on-year growth.
Digital entertainment arm Garena recorded US$1.2 billion in bookings, up from US$0.7 billion the year prior. It said its self-developed game Free Fire continued to be the highest grossing mobile game in South-east Asia, Latin America and India in the second quarter.
Adjusted Ebitda for the digital entertainment segment stood at US$740.9 million, or 62.8 per cent of its bookings.
Meanwhile, e-commerce arm Shopee saw revenue triple from US$0.4 billion to US$1.2 billion in the second quarter, on the back of 1.4 billion gross orders made. It recorded US$15 billion in gross merchandise value.
Under digital financial services, Sea recorded 32.7 million quarterly paying users for mobile wallet services in the second quarter, and more than US$4.1 billion in mobile wallet total payment volume.
https://www.businesstimes.com.sg/co...-loss-widens-to-us4337m-even-as-revenue-rises
Revenue, however, more than doubled to US$2.3 billion for the three months ended June 30, up 158.6 per cent from US$882 million in the previous year, driven by growth in its gaming and e-commerce arms.
Sales in digital entertainment contributed the most to its revenue at US$1 billion, up 166.8 per cent from US$383.9 million in 2020, fuelled by more quarterly paying users and active users on its platform. Quarterly active users grew by 45.1 per cent to 725.2 million, quarterly paying users grew by 84.8 per cent to 92.2 million.
E-commerce and other services contributed US$999.7 million, up from US$364.7 million in the year before, thanks to growing revenue streams - such as transaction-based fees and advertising - in its e-commerce marketplace Shopee.
Sea, which is listed on the New York Stock Exchange, reported an increase in operating expenses during the quarter, rising to US$1.3 billion from US$573.6 million in the same quarter the previous year. About US$921.4 million, or 72.8 per cent, was spent on sales and marketing.
Breaking that down further, Sea spent the most sales and marketing dollars - US$649.2 million - on its e-commerce arm, up from US$268.4 million the year before. The increase was mainly due to "ramping up of marketing incentives and online marketing efforts", in part to capture market opportunities in full, it said.
Total adjusted losses before interest, taxes, depreciation and amortisation (negative Ebitda) was US$24.1 million, compared with adjusted earnings of US$7.7 million a year ago. Ebitda was adjusted for share-based compensation, depreciation and amortisation expenses, as well as the net effect of changes in deferred revenue and its related cost for the digital entertainment segment.
Losses per share excluding share-based compensation was US$0.61, down from US$0.68 in the year before.
On the back of sustained growth, Sea said it is planning to raise its FY2021 guidance for both digital entertainment and e-commerce arms.
Digital entertainment bookings are expected to be between US$4.5 billion and US$4.7 billion, representing 44.4 per cent year-on-year at midpoint. Meanwhile, e-commerce GAAP revenue is expected to be between US$4.7 billion and US$.4.9 billion, representing 121.5 per cent year-on-year growth.
Digital entertainment arm Garena recorded US$1.2 billion in bookings, up from US$0.7 billion the year prior. It said its self-developed game Free Fire continued to be the highest grossing mobile game in South-east Asia, Latin America and India in the second quarter.
Adjusted Ebitda for the digital entertainment segment stood at US$740.9 million, or 62.8 per cent of its bookings.
Meanwhile, e-commerce arm Shopee saw revenue triple from US$0.4 billion to US$1.2 billion in the second quarter, on the back of 1.4 billion gross orders made. It recorded US$15 billion in gross merchandise value.
Under digital financial services, Sea recorded 32.7 million quarterly paying users for mobile wallet services in the second quarter, and more than US$4.1 billion in mobile wallet total payment volume.
https://www.businesstimes.com.sg/co...-loss-widens-to-us4337m-even-as-revenue-rises
