GAMING and e-commerce player Sea on Tuesday (Aug 13) posted a net profit of US$79.9 million for the three months ended Jun 30, down 75.9 per cent from US$331 million in the corresponding year-ago Q2 period.
Despite the decline, the figure was still higher than the US$60 million estimate in a Bloomberg poll of 12 analysts. It was also a return to profit on a quarterly basis, as the group had posted a net loss of US$23 million in Q1 FY2024.
Revenue for the second quarter was US$3.8 billion, rising 23 per cent from US$3.1 billion in the corresponding year-ago period. The figure also beat estimates of US$3.7 billion in a 15-analyst poll by Bloomberg.
On the basis of adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda), Sea posted earnings of US$448.5 million, sliding from US$510 million. It surpassed analysts’ US$397.4 million estimate.
Revenue for its e-commerce segment, which houses platform Shopee, was US$2.8 billion, rising 33.7 per cent from S$2.1 billion year on year.
E-commerce adjusted Ebitda was a loss of US$9.2 million for the three months. Analysts had estimated that the segment would post a loss of US$21.2 million for the second quarter.
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The gross merchandise value (GMV) of the e-commerce segment was US$23.3 billion, up 29.1 per cent.
Forrest Li, chief executive of Sea, said: “With the strong results delivered in the first half and our outlook for the rest of the year, we expect that Shopee will become adjusted Ebitda positive from the third quarter.
“We are also revising up our guidance for Shopee’s 2024 full-year GMV growth to mid-20 per cent.”
Under its digital financial services segment, Sea had a quarterly revenue of US$519.3 million, up 21.4 per cent year on year. The segment includes services such as digital bank MariBank, and digital-payments provider SeaMoney.
Adjusted Ebitda for this segment was US$164.7 million, up 20.2 per cent from US$137 million year on year.
As for digital entertainment, revenue slid to US$435.6 million, from US$529.4 million in Q2 FY2023. Adjusted Ebitda was US$302.8 million, up 26.5 per cent from US$239.5 million.
Sea trades on the New York Stock Exchange. Its shares closed on Monday at US$66.92, up US$2.06 or 3.2 per cent, before the results.
