Singapore-based tech conglomerate Sea Limited has raised the outlook for its e-commerce arm Shopee amid strong e-commerce momentum.
Sea said in a statement on Tuesday that the firm’s total revenue increased by 23 percent year on year to $3.8 billion in the second quarter.
Its total adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $448.5 million, fell from $510.0 million a year ago.
Its total net income was $79.9 million as compared to $331.0 million a year ago.
The firm’s revenue for ecommerce segment jumped 33.7 percent year on year to $2.8 billion, primarily driven by its gross merchandise value (GMV) which went up 29.1 percent year on year to $23.3 billion.
Its revenue for digital finance services also rose 21.4 percent year on year to $519.3 million, underpinned by the growth of its credit business.
This segment’s adjusted EBITDA was $(9.2) million, as compared to $150.3 million a year ago.
As for digital entertainment, the segment’s revenue fell to $435.6 million in the second quarter from $529.4 million a year ago.
The segment’s adjusted EBITDA also grew 20.2 percent year on year to $164.7 million.
Despite the increase in bookings during the second quarter of 2024, the decrease in revenue was primarily due to lower recognition of accumulated deferred revenue due to lower bookings in previous quarters.
As for digital entertainment, the segment’s revenue fell to $435.6 million in the second quarter from $529.4 million a year ago.
Despite the increase in bookings during the second quarter of 2024, the decrease in revenue was primarily due to lower recognition of accumulated deferred revenue due to lower bookings in previous quarters.
This segment’s adjusted EBITDA, however, rose 26.5 percent year on year to $302.8 million.
“I’m happy to report that it has been a solid quarter for us, with our strong momentum from the first quarter continuing into the second quarter,
“All three of our businesses have shown both strong growth and higher profitability,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
On Shopee’s 2024 outlook, he said with the strong results delivered in the first half and its outlook for the rest of the year, he expects that Shopee will become adjusted EBITDA positive from the third quarter.
He is also revising up our guidance for Shopee’s 2024 full year GMV growth to mid-20 percent.
On digital entertainment, Li said, Garena delivered a strong quarter, with more than 20 percent year-on-year growth in bookings, mainly contributed by Free Fire.
“I am very proud to share that, every single day throughout the second quarter, Free Fire had more than 100 million daily active players,
“This reinforces our conviction that Free Fire is an evergreen franchise,” he added.