Sea Limited has reported a total net income of US$331.0 million ($449.19 million) for the 2QFY2023 ended June 30, its third straight quarter of net-profit.
This is a 135.5% y-o-y increase, as compared to total net loss of US$931.2 million in the same period a year ago.
This brings its earnings per share to 0.57 US cents, a 134.1% increase y-o-y from the loss per share of 1.67 cents in the same period a year ago.
The group’s total GAAP (or generally accepted accounting principles) revenue was at US$3.1 billion, up 5.2% y-o-y. This was on the backing of a 20.6% y-o-y GAAP revenue for its e-commerce segment, Shopee, which amounted to US$2.1 billion.
The segment’s adjusted ebitda is US$150.3 million, as compared to a loss of US$648.1 million for the second quarter of 2022, where Asia markets continued to lead the growth in this segment.
Gross orders also increased by more than 10% quarter-on-quarter as a result of growth in both active buyers and buyer purchase frequency.
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Meanwhile, Garena’s GAAP revenue dropped, coming in at US$529.4 million, as compared to US$539.7 million for the previous quarter.
The adjusted ebitda came in at US$239.5 million, increasing by 4.1% q-o-q from US$230.1 million for the previous quarter, partly driven by the sequential increase in Free Fire bookings which has higher margins.
Even though Garena recorded a slightly lower q-o-q revenue, its quarterly active users increased by 10.8% q-o-q from 491.6 million to 544.5 million. It also saw a 14.6% increase q-o-q of quarterly paying users of 43.1 million, and a paying user ratio increasing to 7.9% compared to 7.7% for the previous quarter.
Finally, SeaMoney’s GAAP revenue was US$427.9 million, up 53.4% y-o-y, with an adjusted ebitda of US$137.0 million, as compared to a loss of US$111.5 million for the second quarter of 2022.
As at June 30, Sea’s total loans receivable remained stable q-o-q at US$2.0 billion, net of allowance for credit losses of US$278.6 million. Non-performing loans past due by more than 90 days as a percentage of the group’s total gross loans receivable also remained stable at around 2%.
Its cash, cash equivalents, short-term investments, and other treasury investments for the group amounted to US$7.7 billion, representing a net increase of US$477.4 million from the end of 1QFY2023.
Shares in Sea closed 72 US cents lower or 1.25% down at US$56.90.
