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Bloomberg
Sea Ltd., operator of Southeast Asia’s biggest gaming platform, reported a wider third-quarter loss on rising investments at e-commerce unit Shopee.
Net loss increased to $218 million in the three months ended on September 30 from $132.8 million a year earlier, the company said. Total revenue rose to $204.9 million from $94.1 million.
Sea has been struggling to keep its footing since going public in October 2017.
The Singapore-based company sold stock in its IPO at $15 a share, while its shares closed in US trading at $12.11.
Revenue at digital entertainment unit Garena increased 41 percent to $112.5 million during the quarter, aided by the popularity of Free Fire, the first self-developed hit game at the company. Revenue at e-commerce unit Shopee increased to $65.9 million Group Chief Strategy Officer Alan Hellawell will depart the company effective November 23, according to a statement. Hellawell, a former analyst, has been a key executive to deal with investors since joining the company last year. The move follows high-profile departures that include Group President Nick Nash whose retirement at the end of 2018 was announced in February and Jin Oh, former CEO of Garena who left the firm effective on August 31. The company said it has promoted Terry Zhao as president of Garena. Sea raised its 2018 forecast for total adjusted revenue — which considers changes in deferred revenue — to between $930 million and $970 million. That compares with its previous guidance of between $780 million and $820 million. “The robust momentum across our e-commerce and digital entertainment businesses is reflected in our full-year outlook,†Sea CEO Forrest Li said during today’s earnings conference call.
Sea is forecasting e-commerce GMV for the full year 2018 to between $9.2 billion and $9.7 billion, up from its previous estimate of between $8.2 billion and $8.7 billion. Sea encourages investors and analysts to focus on financial results that are adjusted or not in compliance with generally accepted accounting principles. In its earnings release, it uses the term “adjusted†more than 60 times, while it uses GAAP three times.