Sea Group posts better-than-expected earnings and raises guidance- PingWest

Sea Group posts better-than-expected earnings and raises guidance- PingWest

Sea Group posts better-than-expected earnings and raises guidance

August 18, 2021 4:29 am

The Southeast Asian gaming and e-commerce giant Sea Group reported better-than-expected second-quarter results on Tuesday. Its share price rose 6.12%, closing at $308.27.

Details: For the quarter that ended June 30, Sea Group announced a 158.6 % year-over-year increase in GAAP (generally accepted accounting principles) sales to $2.3 billion, and a net income of $930.9 million, up 363.5 % year-over-year.

Revenue of Shopee, the e-commerce arm, increased 160.7 % year-over-year to $1.2 billion. Shopee’s adjusted Ebitda loss per order was US$0.41, down 19.6 % year-over-year.

Revenue contributed by the gaming division Garena reached $1 billion, a year-on-year increase of 166.8%. The number of quarterly active members increased by 45.1% year-on-year to 725.2 million. The number of paying customers increased by 84.8% year-on-year to 92.2 million.

The total payment of mobile wallets exceeded $4.1 billion, an increase of nearly 150% year-on-year, and the quarterly paying users increased to 32.7 million.

The Singapore-headquartered company lost a total of $433.7 million in the quarter, compared with a loss of $393.5 million in the same period last year. The wideness in losses was due to increases in marketing and sales expenses, general and administrative expenses, and research and development expenses.

Sea Group also raised full-year guidance for gaming and e-commerce. “We expect bookings for digital entertainment to be between $4.5 billion and $4.7 billion, representing 44.4% growth from 2020 at the midpoint of the revised guidance," the company said in its earnings release. "We also expect GAAP revenue for e-commerce to be between $4.7 billion and $4.9 billion, representing 121.5% growth from 2020 at the midpoint of the revised guidance."

Context: According to F&E, Shopee ranked the first in Brazil by downloads and the total time spending app, and ranked the second most popular mobile app by average monthly active users in the shopping category for the quarter. After gaining a strong foothold in the Southeast Asian market, Shopee entered the South American country in 2019.

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