Editor / Fu Tu Information Wudong
Futu News, August 20 news, Southeast Asian Internet company Sea Limited announced Q2 financial results, continued to lose money, pre-market trading suffered a heavy setback, as of press time, fell 11.08% to $32.10.
Source of pre-market quotation: Futu Securities
Sea Limited is an Internet company in Southeast Asia, and Tencent is its largest shareholder, with a stake of 34.3%. Sea Limited's businesses include electronic payment business AirPay, digital entertainment business Garena and e-commerce business Shopee. Like all Internet companies, Sea Limited continues to lose money, totaling $1.7446 billion (12.317 billion yuan) in the past three years.
At the end of 2018, Tencent gave Sea Limited's digital entertainment company GARENA a five-year priority to distribute Tencent's mobile and PC games in Indonesia, Taiwan, Thailand, the Philippines, Malaysia and Singapore. The company has also established deep cooperative relations with Riot Games and Electronic Arts.
Its e-commerce Shopee market share is growing, with GMV rising from US $54 million in 2015 to US $10.3 billion in 2018, with an annual compound growth rate of nearly 500%, second only to Southeast Asian e-commerce Lazada invested by BABA.
Founder Securities released a report in July, saying that Sea Limited had strong ability to develop and distribute games and had plenty of room for growth in e-commerce, giving it a "recommended" rating with a target price of $44.
However, the Q2 financial results released by Sea Limited are not satisfactory. Revenue for the period rose 137.3% year-on-year to $436.2 million, below market expectations of $613.5 million; a net loss of $280.1 million, or $2.35 per share, far exceeding the market's expected loss of $0.43 per share; active users rose 93.3% to 310.5 million compared with 160.6 million in the same period last year Revenue from the digital entertainment business rose 112.4% year-on-year to $229.5 million, compared with $108 million in the same period last year.
Sea Limited predicts that the adjusted income of digital entertainment business and e-commerce business will be 1.6 billion-1.7 billion US dollars and 780 million-820 million US dollars respectively in 2019.