Singapore-based tech conglomerate SEA Limited has achieved a total net income was of $87.3 million in the first quarter, as compared to total net loss of $580.1 million a year ago.
SEA said in a statement on Tuesday that the group’s first quarter total revenue was $3 billion, up 4.9 percent year-on-year.
The group’s total gross profit also rose 21.1 percent year on year to $1.4 billion in the first quarter.
Its total adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter was $507.2 million, as compared to losses before interest, taxes, depreciation, and amortization of $509.9 million a year earlier.
As of March 31, the group’s cash, cash equivalents, short-term investments, and other treasury investments stood at $7.2 billion, representing a net increase of $257.5 million from December 31, 2022.
Sea’s Chairman and Group Chief Executive Officer Forrest Li said the first quarter of 2023 was another strong quarter for the group.
He said the results for the quarter are a testament to the group team’s commitment and creativity.
“We have innovated to do more with fewer resources, while never losing sight of our commitment to our users, and never letting our service standards fall,”
“Across our business, we have been focused on maximizing operational efficiency and improving user experiences. And we continued to make meaningful progress on both fronts,” he said.
He is also pleased with the progress the firm has made so far to strengthen the fundamentals of its business.
“As we continue to fine-tune our operations and navigate near-term macro uncertainties, we remain highly confident in the long-term opportunities in our markets and our ability to capture those profitably,” he said.
The group’s e-commerce revenue increased by 36.3 percent year on year to $2.1 billion in the first quarter, primarily driven by the improved monetization in its e-commerce business and the growth of its credit business.
If included $1.8 billion of marketplace revenue, which consists of core marketplace revenue and value-added services revenue, the segment’s revenue jumped 45.5 percent year-on-year.
The core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 54.3 percent year-on-year to $1.2 billion.
The value-added services revenue, mainly consisting of revenues related to logistics services, was up 32.6 percent year-on-year to $700 million.
E-commerce segment’s adjusted EBITDA for the latest quarter was $207.7 million, as compared to losses before interest, taxes, depreciation, and amortization of $742.8 million for the first quarter of 2022.
Asia markets recorded adjusted EBITDA of $275.8 million, as compared to losses before interest, taxes, depreciation, and amortization $408 million a year ago.
Other markets recorded adjusted losses before interest, taxes, depreciation, and amortization of $68.1 million.
As for digital entertainment, the segment’s revenue fell to $539.7 million from $1.1 billion a year ago, primarily attributable to the ongoing moderation in user engagement and monetization.
The segment’s adjusted EBITDA also slipped to $230.1 million from $431.36 million a year ago.
As for digital financial services, the segment’s revenue surged 75 percent year on year to $412.8 million.
The segment’s adjusted EBITDA was $98.9 million, as compared to losses before interest, taxes, depreciation, and amortization of $124.9 million in the first quarter of 2022.