Third-quarter results for Sea, Southeast Asia’s most valuable company, show that growth in e-commerce has slowed.
Sea’s third quarter revenue more than doubled, reaching $ 1.2 billion. Sea also raised its annual forecast for two main businesses. However, net loss also doubled, to 419.9 million USD. Growth in total transaction value (GMV) in e-commerce fell to 16% from 29% in the second quarter.
Sea’s results were disappointing, according to Nirgunan Tiruchelvam, Tellimer’s head of consumer value research. This suggests that the large market expectations for high growth in the e-commerce segment are misplaced.
Sea has emerged as a stock market phenomenon after its 2017 IPO. Its shares have risen 1,400% since the beginning of 2019, bringing its market value to more than $ 80 billion. Sea is at the forefront of e-commerce and gaming in Southeast Asia.
At least people have become billionaires thanks to Sea, of which CEO Forrest Li’s net worth is estimated at $ 9.4 billion, according to the ranking. Bloomberg.
When reporting financial results, Sea said the digital entertainment division could exceed $ 3.1 billion in revenue, while the e-commerce division is forecast to exceed $ 2.3 billion. All metrics are higher than previously estimated.
Revenue at Garena increased 73% to $ 569 million, reflecting the enduring appeal of the survival shooter Free Fire. Sales from Shopee and other services increased 113% to 489.5 million USD. Sea’s total sales and marketing expenses for the quarter rose 87%, to $ 471 million.
SeaMoney’s financial services and e-payments division also grew as people spend more time and money online. Total payment value in the same period exceeded 2.1 billion USD, up from 1.6 billion USD in the previous quarter.
Du Lam (According to Bloomberg)
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