Saturday , June 19 2021

Singapore Sea reports a wider loss of investment in e-commerce, businesses and markets



Wednesday, 21st November 2018 – 11:17

[SINGAPORE] Sea doo, the operator of the largest gaming platform in Southeast Asia, recorded a wider loss in the third quarter on growing investments in Shopee's e-commerce unit.

Net loss increased to $ 218 million in three months, ending September 30, with $ 132.8 million in the previous year, the company said. Total revenues increased to US $ 204.9 million from USD 94.1 million.

More is struggling to keep its influence from going public in October 2017. The Singapore-based company sold stock to the IPO at $ 15 per share, while stocks closed in US trading at $ 12.11.

KEY SENSITIVES

Revenues at Garena's digital entertainment unit increased 41 percent to $ 112.5 million in a quarter, with the help of the popularity of Free Fire, the first self-made hit game in the company.

Revenues on Shope's e-commerce unit increased to $ 65.9 million.

Chief Strategy Officer Alan Hellawell leaves the company on November 23, according to a statement. Mr. Hellawell, a former analyst, was a key executive director who dealt with investors since joining the company last year.

This step follows the departure of high profile members including Nick Nash's chairman, whose retirement was announced in late February 2018, and Jin Oh, former executive Garene, who left the company on August 31.

The company said it had promoted Terry Zhao as President Garene.

More has raised the 2018 forecast for total adjusted revenue – which takes into account changes in deferred revenue – between $ 930 and $ 970 million. This is compared to the previous guidelines between $ 780 million and $ 820 million.

"The robust momentum in our e-commerce and digital entertainment companies is reflected in our full-year appearance," said Forrest Li, Chief Executive Officer, during his current earnings conference.

More also predicts gross value of commodity exchange for the entire 2018 range between $ 9.2 billion and $ 9.7 billion, according to a previous estimate of $ 8.2 billion to $ 8.7 billion.

More encourages investors and analysts to focus on financial results that are aligned or not consistent with generally accepted accounting principles (GAAP). In its earnings release, the term "customized" is used more than 60 times and GAAP is used three times.

Howard Soh, Head of Strategy and Corporate Development at Sea, said at a conference call that nonprofit financial measures such as custom revenue and custom net loss may help to understand the company. "We believe that these measures can improve understanding of the real cash flows of large companies of our investors when used as a supplement to general accounting standards," he said.

GET MORE

Sea announced a contract with Tencent Holdings Ltd this week to publish and distribute Tencent online gaming in Southeast Asia. The deal gives Garena a five-year right to first refuse Tencent's games, according to a statement.

Sales and marketing expenses rose 37 percent to $ 180.3 million in the third quarter.

REACTION OF THE MARKET

Shares in the sea fell by 4.7 percent in New York on Tuesday, ahead of the earnings report, and fell 9.2 percent this year.

Bloomberg


Source link