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Singapore Tech Giant Sea Ltd Nearly Double Q3 Revenue While Loss Widens For Market Expansion

November 17, 2020 11:57 pm

Beijing (PingWest)- Sea Ltd, a Southeast Asian gaming and e-commerce company, on Tuesday reported a revenue of USD1,2 billion for the third quarter of 2020, jumped 99% compared to the same period last yest, supported by strong growth in its e-commerce service-Shopee.

Analyst had mixed views on Sea’s Q3 revenue. Morgan Stanley had forecast Sea’s revenue would come at USD1.47 billion, while Japanese investment bank Daiwa expected a revenue of USD1.16 billion for the Singapore based tech group.

However, Sea still sunk into the red with a quarterly loss of USD425 million, widening from USD206 million loss a year earlier. The company blamed the quarterly loss to its heavy investment in Southeast Asian market expansion.

Sea is one of beneficiaries of the Covid-19 pandemic as pandemic lockdowns have boosted demand for online shopping, home entertainment such as gaming, which are two mainly core business of Sea.

The company’s market capitalization had more than quadrupled from the beginning of this year, reaching USD80 billion. It is by far the largest listed company in Southeast Asia in terms of market value.

For the company’s digital entertainment segment, which includes gaming business, generated a revenue of USD569 million, representing a year-over-year growth of 72.9%.

Referring to its online gaming business, Sea's Chairman and Group CEO Forrest Li said during a teleconference Tuesday that "we expect our very strong performance in the third quarter will sustain through the fourth quarter."

Quarterly paying user more than doubled to 65.3 million, while revenue for the average subscribe per user was USD1.7 increased from USD1.40 a year earlier, Sea said, citing data from App Annie which indicated that Free Fire was the highest grossing mobile game in Southeast Asia in the quarter.

Sea’s e-commerce unit, Shopee, reported a revenue of USD618.7 million, up 173.3 per cent year-over-year.

The digital payment business, SeaMoney, generated revenue of USD14.4 million for the quarter, only account for 1% of the total revenue.

Shopee and SeaMoney reported operating losses of USD338 million and USD151 million, respectively.

According to a report co-released by Google, Temasek Holdings and Bain& Company, Southeast Asia’s e-commerce market is expected to grow 63% this year to USD62 billion, a big jump from USD38 million a year earlier, in terms of gross merchandise value.