Singapore-based tech conglomerate Sea Limited has reported higher revenue and profit in the second quarter, underpinned by improved e-commerce businesses.

The group said in a statement on Tuesday that its total revenue for the second quarter rose 5.2 percent year on year to $3.1 billion.

Meanwhile, its total gross profit for the quarter jumped 33.1 percent year on year to $1.5 billion.

The firm posted a total net income of $331 million in the second quarter, as compared to total net loss of $931.2 million a year ago.

The group’s total adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $510 million, as compared to a loss of $506.3 million a year earlier.

As of June 30, 2023, the group’s cash, cash equivalents, short-term investments, and other treasury investments were $7.7 billion, representing a net increase of $477.4 million from March 31, 2023.

“In the second quarter of 2023, we delivered strong results, building upon many of the key initiatives we shared previously,” said Forrest Li, Sea’s Chairman and Group Chief Executive Officer.

According to him, in the past couple of quarters, the firm has not only achieved self-sufficiency, but also demonstrated the profitability of its model and its ability to manage fast and significant shifts in operational focus as it sees fit.

“Given this, we have strengthened our execution capabilities and increased the stickiness of our ecosystem,

“We believe we are now on firmer footing to better serve our communities,” he said.

Meanwhile, he said the economies of the firm’s established region have remained resilient, and he is excited to see recent ecosystem developments in the growth of diversified user engagement through live streaming, short form videos, and affiliate programs.

“Such developments offer us further opportunities to grow and expand our long-term profitable addressable market,” he said.

Given these positive developments and trends, he said the firm has started, and will continue, to ramp up its investments in growing the ecommerce business across its markets.

“We believe that the efficiency gains and stronger footing we have achieved through our past efforts have further strengthened our ability to invest efficiently in growth,

“As we reaccelerate investments in growth, our strategic focus to build cost leadership and continually improve user experience remains key to our long-term success,” he added.

According to the statement, the group’s revenue for its e-commerce segment increased by 20.6 percent year on year to $2.1 billion.

The segment’s adjusted EBITDA was $150.3 million, as compared to a loss of $648.1 million for the second quarter of 2022.

The group’s revenue for its digital entertainment was $529.4 million, down from US$539.7 million for the previous quarter.

The segment’s adjusted EBITDA was $239.5 million, increasing by 4.1 percent quarter-on-quarter from $230.1 million for the previous quarter, partly driven by the sequential increase in Free Fire bookings which has higher margins.

The group’s revenue for its digital financial services also surged 53.4 percent year on year to $427.9 million.

The segment’s adjusted EBITDA was $137 million, as compared to a loss of $111.5 million for the second quarter of 2022.

SEA achieves total net income of $87.3M in 1Q as revenue rises