Shopee, 'Free Fire' game demand help Sea beat revenue estimates
Shopee, a popular e-commerce platform in Southeast Asia and Taiwan, is seeing strong consumer demand, thanks to the company's efforts to offer competitive pricing and improved customer experience.
The company has been working to improve user acquisition, traffic and engagement on its Shopee app by introducing social elements like live-streaming and mini-games with redeemable coins and prizes.
Revenue from Sea's e-commerce unit, which turned profitable last year, jumped 33.7% to $3.8 billion in the April-June quarter.
Gross merchandise value - a measure of the total value of products sold on the platform - rose 28% to $29.8 billion.
"All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year," CEO Forrest Li said.
"Our company has reached a stage where we can pursue growth opportunities while improving profitability."
Meanwhile, revenue at Sea's digital entertainment unit rose 28.4% to $559.1 million. The segment houses online game developer and publisher Garena, widely known for its popular mobile shooter game "Free Fire".
"Free Fire has established itself as an evergreen franchise, both sustaining its user engagement and growing its appeal in more markets globally," Li said, adding that bookings at Garena are now expected to grow more than 30% this year.
Garena reported a 17.8% jump in paying users and a 23% increase in bookings for the June quarter.
Sea's digital financial products arm, home to its Monee app that offers services including payment processing and credit products, reported a 70% rise in revenue to $882.8 million.
Singapore-based Sea reported a 38.2% rise in total second-quarter revenue to $5.26 billion, beating estimates of $4.98 billion, according to data compiled by LSEG.
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