Sea Limited has reported “another strong quarter” for the 1QFY2023 ended March, with total net income at US$87.3 million ($116.6 million) compared to a total net loss of US$580.1 million in the 1QFY2022.
The total net income was negatively impacted by US$117.9 million impairment of goodwill associated with the group’s prior acquisition, says Sea in its results.
Total GAAP (or generally accepted accounting principles) revenue was up by 4.9% y-o-y to US$3.0 billion. Of its segments, revenues for e-commerce and digital financial services rose, offsetting the revenue decline in Sea’s Digital Entertainment segment.
E-commerce’s GAAP revenue rose by 36.3% y-o-y to US$2.1 billion. Based on constant currency assumptions, GAAP revenue was up 41.7% y-o-y. GAAP revenue included US$1.8 billion of GAAP marketplace revenue, which was up by 45.5% y-o-y. The figure consists of core marketplace revenue and value-added services revenue.
GAAP revenue for digital financial services surged by 75.0% y-o-y to US$412.8 million. Adjusted ebitdda for the segment was US$98.9 million, as compared to US$(124.9) million for the 1QFY2022.
Meanwhile, digital entertainment saw GAAP revenue plunge by 43.1% y-o-y to US$539.7 million. Bookings fell by 15.0% y-o-y to US$462.3 million. Adjusted ebitda for the segment was US$98.9 million, compared to the ebitda loss of US$124.9 million for the 1QFY2022.
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Total gross profit was up by 21.1% y-o-y to US$1.4 billion.
Total adjusted ebitda was US$507.2 million, compared to the ebitda loss of US$509.9 million for the 1QFY2022.
Cash and cash equivalents, short-term investments, and other treasury investments were US$7.2 billion as at March 31, a net increase of US$257.5 million from Dec 31, 2022.
“The results for the quarter are a testament to our 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,” says Forrest Li, Sea’s chairman and group CEO.
“We are also pleased with the progress we have made so far to strengthen the fundamentals of our 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 adds.
In its update, Sea adds that Sea Capital’s chief investment officer (CIO), David Ma, has joined the group’s board of directors and will no longer serve in his role of CIO.
“On behalf of the company, I would like to express our gratitude to David for his service as part of our leadership team during an important period in our development. I am grateful that we will continue to benefit from his expertise and experience as a member of our board of directors, and I have no doubt that he will continue to make important contributions to our company in this new role,” says Li.
Shares in Sea closed US$3.30 higher or 3.89% up at US$88.07 on May 15.
