$SE (-1,3%) - Sea Limited Q2 earnings highlights:
- EPS: $0.14 (estimated $0.59)
- Revenue: $3.81 billion (estimated $3.73 billion); increase of +23.0% year-on-year
Outlook for financial year 2024:
- Shopee GMV growth: Upwardly revised to mid-20% range
- Adjusted EBITDA of Shopee: expected to be positive from Q3 onwards
- Revenue: Confirmation of forecast growth of at least 30% on a constant currency basis
Group key financial figures:
- Gross profit: USD 1.6 billion, up 9.2% on the previous year
- Net income: USD 79.9 million, down -75.9% on the previous year
- Adjusted EBITDA: USD 448.5 million, down -12.1% on the previous year
E-commerce performance (Shopee):
- Gross orders: 2.5 billion, increase of 40.3 % compared to the previous year
- GMV: USD 23.3 billion, increase of 29.1% compared to the previous year
- Sales: USD 2.8 billion, increase of 33.7% compared to the previous year
- Adjusted EBITDA: USD (9.2) million (compared to USD 150.3 million in Q2 2023)
Digital financial services:
- Revenue: USD 519.3 million, increase of 21.4% compared to the previous year
- Adjusted EBITDA: USD 164.7 million, increase of 20.2% compared to the previous year
Digital Entertainment (Garena):
- Bookings: USD 536.8 million, up 21.1% on the previous year
- Revenue: USD 435.6 million, down 17.7% on the previous year
- Adjusted EBITDA: USD 302.8 million, up 26.5% on the previous year
CEO's comment:
- Forrest Li (CEO): "We are pleased with the strong performance in all our business segments. With the positive momentum from the first half of 2024, we expect Shopee to achieve adjusted EBITDA profitability from the third quarter. Garena continues to perform well, driven by Free Fire, which remains an evergreen franchise with over 100 million daily active players."
Changes to the Management Board:
- New appointments: Dr. Silvio Savarese and Ms. Jessica Tan were elected as independent directors.
- Departure: Mr. Tony Hou, the current CFO, is stepping down from the Executive Board but will remain in his role as CFO.
Other highlights:
- Provision for credit losses increased by 9.4% year-on-year to USD 167.4 million in the second quarter of 2024, compared to USD 153.0 million in the second quarter of 2023.
- Sales and marketing expenses increased by 57.0% year-on-year to USD 774.8 million in the second quarter of 2024, compared to USD 493.6 million in the second quarter of 2023.
