Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced
its financial results for the second quarter ended June 30,
2023.
“In the second quarter of 2023, we delivered strong results,
building upon many of the key initiatives we shared previously,”
said Forrest Li, Sea’s Chairman and Group Chief Executive Officer.
“In the past couple of quarters, we have not only achieved
self-sufficiency, but also demonstrated the profitability of our
model and our ability to manage fast and significant shifts in
operational focus as we see fit. Given this, we have strengthened
our execution capabilities and increased the stickiness of our
ecosystem. We believe we are now on firmer footing to better serve
our communities.”
“Meanwhile, the economies of our region have remained resilient,
and we are excited to see recent ecosystem developments in the
growth of diversified user engagement through live streaming, short
form videos, and affiliate programs. Such developments offer us
further opportunities to grow and expand our long-term profitable
addressable market. Given these positive developments and trends,
we have started, and will continue, to ramp up our investments in
growing the e-commerce business across our markets. We believe that
the efficiency gains and stronger footing we have achieved through
our past efforts have further strengthened our ability to invest
efficiently in growth. As we reaccelerate investments in growth,
our strategic focus to build cost leadership and continually
improve user experience remains key to our long-term success.”
Second Quarter 2023 Highlights
- Group
- Total GAAP revenue was US$3.1 billion, up 5.2%
year-on-year.
- Total gross profit was US$1.5 billion, up 33.1%
year-on-year.
- Total net income was US$331.0 million, as compared to total net
loss of US$(931.2) million for the second quarter of 2022.
- Total adjusted EBITDA1 was US$510.0 million, as compared to a
loss of US$(506.3) million for the second quarter of 2022.
- As of June 30, 2023, cash, cash equivalents, short-term
investments, and other treasury investments2 were US$7.7 billion,
representing a net increase of US$477.4 million from March 31,
2023.
- E-commerce
- GAAP revenue was US$2.1 billion, up 20.6% year-on-year. Based
on constant currency assumptions3, GAAP revenue was up 24.4%
year-on-year.
- GAAP revenue included US$1.9 billion of GAAP marketplace
revenue, which consists of core marketplace revenue and value-added
services revenue and increased by 27.5% year-on-year.
- Core marketplace revenue, mainly consisting of
transaction-based fees and advertising revenues, was up 37.6%
year-on-year and 7.4% quarter-on-quarter to US$1.2 billion as a
result of both increases in advertisement uptake by sellers on our
platform and commission rates.
- Value-added services revenue (“VAS revenue”), mainly consisting
of revenues related to logistics services, was up 11.3%
year-on-year to US$625.2 million. VAS revenue declined 6.6%
quarter-on-quarter as we began to reaccelerate growth during the
quarter and increased investments in shipping subsidies
programs.
- Adjusted EBITDA1 was US$150.3 million, as compared to a loss of
US$(648.1) million for the second quarter of 2022.
- Asia markets recorded adjusted EBITDA of US$204.1 million, as
compared to a loss of US$(316.1) million for the second quarter of
2022.
- Other markets recorded adjusted EBITDA of US$(53.7) million, as
compared to a loss of US$(332.0) million for the second quarter of
2022.
- In Brazil, unit economics continued to improve, with
contribution margin loss per order improving 83.0% year-on-year to
reach US$0.24 for the quarter.
- Gross orders increased by more than 10% quarter-on-quarter as a
result of growth in both active buyers and buyer purchase
frequency.
- Digital Entertainment
- GAAP revenue was US$529.4 million, as compared to US$539.7
million for the previous quarter.
- Bookings4 were US$443.1 million, as compared to US$462.3
million for the previous quarter.
- Adjusted EBITDA1 was US$239.5 million, increasing by 4.1%
quarter-on-quarter from US$230.1 million for the previous quarter,
partly driven by the sequential increase in Free Fire bookings
which has higher margins.
- Adjusted EBITDA represented 54.0% of bookings for the second
quarter of 2023, improved from 49.8% for the previous quarter.
- Quarterly active users were 544.5 million, increasing by 10.8%
quarter-on-quarter from 491.6 million for the previous
quarter.
- Quarterly paying users were 43.1 million, increasing by 14.6%
quarter-on-quarter, and paying user ratio increased to 7.9%
compared to 7.7% for the previous quarter.
- Average bookings per user were US$0.8, as compared to US$0.9
for the previous quarter.
- Digital Financial Services
- GAAP revenue was US$427.9 million, up 53.4% year-on-year.
- Adjusted EBITDA1 was US$137.0 million, as compared to a loss of
US$(111.5) million for the second quarter of 2022.
- As of June 30, 2023, total loans receivable
remained stable quarter-on-quarter at US$2.0 billion, net of
allowance for credit losses of US$278.6 million. Non-performing
loans past due by more than 90 days as a percentage of our total
gross loans receivable also remained stable at around 2%.
1
For a discussion of the use of non-GAAP
financial measures, see “Non-GAAP Financial Measures”.
2
Other treasury investments currently
consist of available-for-sale sovereign and corporate bonds
excluding those at our banking entities, with maturities over one
year, classified as part of long-term investments.
3
Current and comparative prior period local
currency amounts are converted into United States dollars using the
same exchange rates, rather than the actual exchange rates during
the respective periods.
4
GAAP revenue for the digital entertainment
segment plus change in digital entertainment deferred revenue. This
operating metric is used as an approximation of cash spent by our
users in the applicable period that is attributable to our digital
entertainment segment.
Unaudited Summary of Financial
Results
(Amounts are expressed in thousands of US
dollars “$” except for per share data)
For the Three Months
ended June 30,
2022
2023
$
$
YOY%
Revenue
Service revenue
Digital Entertainment
900,258
529,397
(41.2
)%
E-commerce and other services
1,755,686
2,322,496
32.3
%
Sales of goods
286,655
243,767
(15.0
)%
2,942,599
3,095,660
5.2
%
Cost of revenue
Cost of service
Digital Entertainment
(260,529
)
(160,669
)
(38.3
)%
E-commerce and other services
(1,329,665
)
(1,263,522
)
(5.0
)%
Cost of goods sold
(262,187
)
(220,591
)
(15.9
)%
(1,852,381
)
(1,644,782
)
(11.2
)%
Gross profit
1,090,218
1,450,878
33.1
%
Other operating income
71,104
58,003
(18.4
)%
Sales and marketing expenses
(973,767
)
(493,601
)
(49.3
)%
General and administrative expenses
(364,447
)
(295,169
)
(19.0
)%
Provision for credit losses
(111,598
)
(153,001
)
37.1
%
Research and development expenses
(370,926
)
(283,297
)
(23.6
)%
Impairment of goodwill
(177,280
)
-
-
Total operating expenses
(1,926,914
)
(1,167,065
)
(39.4
)%
Operating (loss) income
(836,696
)
283,813
(133.9
)%
Non-operating (loss) income, net
(32,765
)
107,565
(428.3
)%
Income tax expense
(64,771
)
(62,212
)
(4.0
)%
Share of results of equity investees
3,033
1,817
(40.1
)%
Net (loss) income
(931,199
)
330,983
(135.5
)%
(Loss) Earnings per share attributable to
Sea Limited’s ordinary shareholders:
Basic
(1.67
)
0.57
(134.1
)%
Diluted
(1.67
)
0.54
(132.3
)%
Change in deferred revenue of Digital
Entertainment
(182,904
)
(86,254
)
(52.8
)%
Adjusted EBITDA for Digital Entertainment
(1)
333,619
239,459
(28.2
)%
Adjusted EBITDA for E-commerce (1)
(648,145
)
150,339
(123.2
)%
Adjusted EBITDA for Digital Financial
Services (1)
(111,517
)
136,961
(222.8
)%
Adjusted EBITDA for Other Services (1)
(72,555
)
(7,189
)
(90.1
)%
Unallocated expenses (2)
(7,653
)
(9,549
)
24.8
%
Total adjusted EBITDA (1)
(506,251
)
510,021
(200.7
)%
(1)
For a discussion of the use of non-GAAP
financial measures, see “Non-GAAP Financial Measures”.
(2)
Unallocated expenses within total adjusted
EBITDA are mainly related to general and corporate administrative
costs such as professional fees and other miscellaneous items that
are not allocated to segments. These expenses are excluded from
segment results as they are not reviewed by the Chief Operating
Decision Maker (“CODM”) as part of segment performance.
Three Months Ended June 30, 2023 Compared to Three Months
Ended June 30, 2022
Revenue
Our total GAAP revenue increased by 5.2% to US$3.1 billion in
the second quarter of 2023 from US$2.9 billion in the second
quarter of 2022.
- Digital Entertainment: GAAP revenue was US$529.4 million
compared to US$900.3 million in the second quarter of 2022,
primarily attributable to moderation in user engagement and
monetization year-on-year.
- E-commerce and other services: GAAP revenue increased by 32.3%
to US$2.3 billion in the second quarter of 2023 from US$1.8 billion
in the second quarter of 2022, primarily driven by the improved
monetization in our e-commerce business and the growth of our
credit business year-on-year.
- Sales of goods: GAAP revenue was US$243.8 million, as compared
to US$286.7 million in the second quarter of 2022.
Cost of Revenue
Our total cost of revenue decreased by 11.2% to US$1.6 billion
in the second quarter of 2023 from US$1.9 billion in the second
quarter of 2022.
- Digital Entertainment: Cost of revenue decreased by 38.3% to
US$160.7 million in the second quarter of 2023 from US$260.5
million in the second quarter of 2022.
- E-commerce and other services: Cost of revenue for our
e-commerce and other services segment combined was US$1.3 billion
in the second quarter of 2023, flat year-on-year. Improvement in
gross profit margins was driven by increased monetization and
greater cost efficiencies in our e-commerce and digital financial
services business.
- Cost of goods sold: Cost of goods sold decreased by 15.9% to
US$220.6 million in the second quarter of 2023 from US$262.2
million in the second quarter of 2022.
Other Operating Income
Our other operating income was US$58.0 million and US$71.1
million in the second quarter of 2023 and 2022, respectively. Other
operating income mainly consists of rebates from e-commerce related
logistics services providers.
Sales and Marketing Expenses
Our total sales and marketing expenses decreased by 49.3% to
US$493.6 million in the second quarter of 2023 from US$1.0 billion
in the second quarter of 2022. The table below sets forth breakdown
of the sales and marketing expenses of our major reporting
segments. Amounts are expressed in thousands of US dollars
(“$”).
For the Three Months
ended June 30,
2022
2023
YOY%
Sales and Marketing Expenses
$
$
Digital Entertainment
87,100
26,636
(69.4)%
E-commerce
674,120
431,979
(35.9)%
Digital Financial Services
162,466
19,207
(88.2)%
General and Administrative Expenses
Our general and administrative expenses decreased by 19.0% to
US$295.2 million in the second quarter of 2023 from US$364.4
million in the second quarter of 2022.
Provision for Credit Losses
Our provision for credit losses increased by 37.1% to US$153.0
million in the second quarter of 2023 from US$111.6 million in the
second quarter of 2022.
Research and Development Expenses
Our research and development expenses decreased by 23.6% to
US$283.3 million in the second quarter of 2023 from US$370.9
million in the second quarter of 2022.
Impairment of Goodwill
We recorded nil impairment of goodwill in the second quarter of
2023, compared to US$177.3 million in the second quarter of
2022.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest
income, interest expense, investment gain (loss) and foreign
exchange gain (loss). We recorded a net non-operating income of
US$107.6 million in the second quarter of 2023, as compared to a
net non-operating loss of US$32.8 million in the second quarter of
2022. The year-on-year increase was mainly due to higher interest
income in the second quarter of 2023 and investment losses
recognized in the second quarter of 2022.
Income Tax Expense
We had a net income tax expense of US$62.2 million and US$64.8
million in the second quarter of 2023 and 2022, respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$331.0
million in the second quarter of 2023, as compared to net loss of
US$931.2 million in the second quarter of 2022.
Basic and Diluted Earnings or Loss Per Share Attributable to
Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary
shareholders was US$0.57 in the second quarter of 2023, as compared
to basic loss per share attributable to Sea Limited’s ordinary
shareholders of US$1.67 in the second quarter of 2022.
Diluted earnings per share attributable to Sea Limited’s
ordinary shareholders was US$0.54 in the second quarter of
2023.
Webcast and Conference Call Information
The Company’s management will host a conference call today to
review Sea’s business and financial performance.
Details of the webcast are as follows:
Date and time:
7:30 AM U.S. Eastern Time on August 15,
2023 7:30 PM Singapore / Hong Kong Time on August 15, 2023
Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=qkaSw13n
A replay of the conference call will be available at the
Company’s investor relations website (www.sea.com/investor/home).
An archived webcast will be available at the same link above.
About Sea Limited
Sea Limited (NYSE: SE) is a leading global consumer internet
company founded in Singapore in 2009. Its mission is to better the
lives of consumers and small businesses with technology. Sea
operates three core businesses across digital entertainment,
e-commerce, as well as digital payments and financial services,
known as Garena, Shopee and SeaMoney, respectively. Garena is a
leading global online games developer and publisher. Shopee is the
largest pan-regional e-commerce platform in Southeast Asia and
Taiwan. SeaMoney is a leading digital payments and financial
services provider in Southeast Asia.
Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“may,” “could,” “will,” “expect,” “anticipate,” “aim,” “future,”
“intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,”
“confident,” “guidance,” and similar statements. Among other
things, statements that are not historical facts, including
statements about Sea’s beliefs and expectations, the business,
financial and market outlook, and projections from its management
in this announcement, as well as Sea’s strategic and operational
plans, contain forward-looking statements. Sea may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission (the “SEC”), in its
annual report to shareholders, in press releases, and other written
materials, and in oral statements made by its officers, directors,
or employees to third parties. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: Sea’s goals and strategies; its future business
development, financial condition, financial results, and results of
operations; the expected growth in, and market size of, the digital
entertainment, e-commerce and digital financial services industries
in the markets where it operates, including segments within those
industries; expected changes or guidance in its revenue, costs or
expenditures; its ability to continue to source, develop and offer
new and attractive online games and to offer other engaging digital
entertainment content; the expected growth of its digital
entertainment, e-commerce and digital financial services
businesses; its expectations regarding growth in its user base,
level of engagement, and monetization; its ability to continue to
develop new technologies and/or upgrade its existing technologies;
its expectations regarding the use of proceeds from its financing
activities, including its follow-on equity offerings and
convertible notes offerings; growth and trends of its markets and
competition in its industries; government policies and regulations
relating to its industries, including the effects of any government
orders or actions on its businesses; general economic, political,
social and business conditions in its markets; and the impact of
widespread health developments, including the COVID-19 pandemic,
and the responses thereto (such as voluntary and in some cases,
mandatory quarantines as well as shut downs and other restrictions
on travel and commercial, social and other activities, and the
availability of effective vaccines or treatments) and the impact of
economies reopening further to the COVID-19 pandemic. Further
information regarding these and other risks is included in Sea’s
filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and Sea undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. GAAP, we use the
following non-GAAP financial measures to help evaluate our
operating performance:
- “Adjusted EBITDA” for our digital entertainment segment
represents operating income (loss) before share-based compensation
plus (a) depreciation and amortization expenses, and (b) the net
effect of changes in deferred revenue and its related cost for our
digital entertainment segment. We believe that the segment adjusted
EBITDA helps to identify underlying trends in our operating
results, enhancing their understanding of the past performance and
future prospects.
- “Adjusted EBITDA” for our e-commerce segment, digital financial
services segment and other services segment represents operating
income (loss) before share-based compensation plus depreciation and
amortization expenses. We believe that the segment adjusted EBITDA
helps to identify underlying trends in our operating results,
enhancing their understanding of the past performance and future
prospects.
- “Total adjusted EBITDA” represents the sum of adjusted EBITDA
of all our segments combined, plus unallocated expenses. We believe
that the total adjusted EBITDA helps to identify underlying trends
in our operating results, enhancing their understanding of the past
performance and future prospects.
These non-GAAP financial measures have limitations as analytical
tools. None of the above financial measures should be considered in
isolation or construed as an alternative to revenue, net
loss/income, or any other measure of performance or as an indicator
of our operating performance. These non-GAAP financial measures
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate
similarly titled measures differently, limiting their usefulness as
comparative measures to Sea’s data. We compensate for these
limitations by reconciling the non-GAAP financial measures to their
nearest U.S. GAAP financial measures, all of which should be
considered when evaluating our performance. We encourage you to
review our financial information in its entirety and not rely on
any single financial measure.
The tables below present selected financial information of our
reporting segments, the non-GAAP financial measures that are most
directly comparable to GAAP financial measures, and the related
reconciliations between the financial measures. Amounts are
expressed in thousands of US dollars (“$”) except for number of
shares & per share data.
For the Three Months ended
June 30, 2023
Digital Entertainment
E- commerce
Digital Financial Services
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Operating income (loss)
296,457
65,550
120,966
(10,034
)
(189,126
)
283,813
Net effect of changes in deferred revenue
and its related cost
(65,360
)
-
-
-
-
(65,360
)
Depreciation and Amortization
8,362
84,789
15,995
2,845
-
111,991
Share-based compensation
-
-
-
-
179,577
179,577
Adjusted EBITDA
239,459
150,339
136,961
(7,189
)
(9,549
)
510,021
For the Three Months ended
June 30, 2022
Digital Entertainment
E- commerce
Digital Financial Services
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Operating income (loss)
456,811
(726,127
)
(122,735
)
(75,604
)
(369,041
)
(836,696
)
Net effect of changes in deferred revenue
and its related cost
(134,100
)
-
-
-
-
(134,100
)
Depreciation and Amortization
10,908
77,982
11,218
3,049
-
103,157
Share-based compensation
-
-
-
-
184,108
184,108
Impairment of goodwill
-
-
-
-
177,280
177,280
Adjusted EBITDA
333,619
(648,145
)
(111,517
)
(72,555
)
(7,653
)
(506,251
)
(1)
A combination of multiple business
activities that does not meet the quantitative thresholds to
qualify as reportable segments are grouped together as “Other
Services”.
(2)
Unallocated expenses are mainly related to
share-based compensation, impairment of goodwill of prior
acquisition that are not under our reportable segments, and general
and corporate administrative costs such as professional fees and
other miscellaneous items that are not allocated to segments. These
expenses are excluded from segment results as they are not reviewed
by the CODM as part of segment performance.
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
Amounts expressed in thousands of US
dollars (“$”) except for number of shares & per share
data
For the Six Months
ended June 30,
2022
2023
$
$
Revenue
Service revenue
Digital Entertainment
2,035,427
1,069,083
E-commerce and other services
3,255,297
4,582,073
Sales of goods
551,446
485,608
Total revenue
5,842,170
6,136,764
Cost of revenue
Cost of service
Digital Entertainment
(569,714)
(334,035)
E-commerce and other services
(2,506,142)
(2,504,850)
Cost of goods sold
(506,068)
(430,311)
Total cost of revenue
(3,581,924)
(3,269,196)
Gross profit
2,260,246
2,867,568
Operating income (expenses)
Other operating income
144,759
115,883
Sales and marketing expenses
(1,978,941)
(893,744)
General and administrative expenses
(680,114)
(628,546)
Provision for credit losses
(192,064)
(330,440)
Research and development expenses
(711,334)
(603,809)
Impairment of goodwill
(177,280)
(117,875)
Total operating expenses
(3,594,974)
(2,458,531)
Operating (loss) income
(1,334,728)
409,037
Interest income
29,841
152,326
Interest expense
(23,029)
(20,773)
Investment loss, net
(59,036)
(28,815)
Foreign exchange gain
13,399
27,349
(Loss) Income before income tax and
share of results of equity investees
(1,373,553)
539,124
Income tax expense
(146,577)
(124,110)
Share of results of equity investees
8,795
3,261
Net (loss) income
(1,511,335)
418,275
Net income attributable to non-controlling
interests
(1,585)
(8,595)
Net (loss) income attributable to Sea
Limited’s ordinary shareholders
(1,512,920)
409,680
(Loss) Earnings per share:
Basic
(2.72)
0.73
Diluted
(2.72)
0.69
Weighted average shares used in (loss)
earnings per share computation:
Basic
556,834,663
564,261,877
Diluted
556,834,663
598,716,012
UNAUDITED INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US
dollars (“$”)
As of December
31,
As of June 30,
2022
2023
$
$
ASSETS
Current assets
Cash and cash equivalents
6,029,859
3,524,449
Restricted cash
1,549,574
1,427,561
Accounts receivable, net of allowance for
credit losses of $12,818 and $7,735, as of December 31, 2022 and
June 30, 2023 respectively
268,814
192,310
Prepaid expenses and other assets
1,798,651
2,051,618
Loans receivable, net of allowance for
credit losses of $236,797 and $276,891, as of December 31, 2022 and
June 30, 2023 respectively
2,053,767
1,999,544
Inventories, net
109,668
98,489
Short-term investments
864,258
2,174,887
Amounts due from related parties
13,421
6,969
Total current assets
12,688,012
11,475,827
Non-current assets
Property and equipment, net
1,387,895
1,307,463
Operating lease right-of-use assets,
net
957,840
1,000,888
Intangible assets, net
65,019
61,326
Long-term investments
1,253,593
3,183,342
Prepaid expenses and other assets
135,616
136,826
Loans receivable, net of allowance for
credit losses of $2,022 and $1,684, as of December 31, 2022 and
June 30, 2023 respectively
21,663
18,797
Restricted cash
17,724
27,779
Deferred tax assets
245,226
325,051
Goodwill
230,208
115,017
Total non-current assets
4,314,784
6,176,489
Total assets
17,002,796
17,652,316
UNAUDITED INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US
dollars (“$”)
As of December
31,
As of June 30,
2022
2023
$
$
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities
Accounts payable
258,648
219,048
Accrued expenses and other payables
1,396,613
1,409,322
Deposits payable
1,316,395
1,350,555
Escrow payables and advances from
customers
1,862,325
1,774,249
Amounts due to related parties
415
411
Borrowings
88,410
101,996
Operating lease liabilities
269,968
280,832
Convertible notes
31,237
–
Deferred revenue
1,535,083
1,251,736
Income tax payable
176,598
187,574
Total current liabilities
6,935,692
6,575,723
Non-current liabilities
Accrued expenses and other payables
87,072
82,503
Borrowings
–
50,000
Operating lease liabilities
756,818
786,961
Deferred revenue
63,566
194,449
Convertible notes
3,338,750
3,341,733
Deferred tax liabilities
9,967
603
Unrecognized tax benefits
107
107
Total non-current liabilities
4,256,280
4,456,356
Total liabilities
11,191,972
11,032,079
UNAUDITED INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US
dollars (“$”)
As of December
31,
As of June 30,
2022
2023
$
$
Shareholders’ equity
Class A Ordinary shares
258
260
Class B Ordinary shares
23
23
Additional paid-in capital
14,559,690
14,974,805
Accumulated other comprehensive loss
(111,215)
(140,189)
Statutory reserves
12,490
13,098
Accumulated deficit
(8,745,541)
(8,336,469)
Total Sea Limited shareholders’
equity
5,715,705
6,511,528
Non-controlling interests
95,119
108,709
Total shareholders’ equity
5,810,824
6,620,237
Total liabilities and shareholders’
equity
17,002,796
17,652,316
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
Amounts expressed in thousands of US
dollars (“$”)
For the Six Months ended
June 30,
2022
2023
$
$
Net cash (used in) generated from
operating activities
(1,209,121)
1,201,016
Net cash used in investing activities
(2,078,203)
(3,867,640)
Net cash generated from financing
activities
439,937
58,143
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
(127,734)
(22,114)
Net decrease in cash, cash equivalents and
restricted cash
(2,975,121)
(2,630,595)
Cash, cash equivalents and restricted cash
at beginning of the period(1)
10,838,140
7,610,384
Cash, cash equivalents and restricted cash
at end of the period
7,863,019
4,979,789
(1)
As of December 31, 2022, cash and cash
equivalents of US$13,227 was included in assets held for sale
within prepaid expenses and other assets.
Net cash used in investing activities amounted to US$3,868
million for the six months ended June 30, 2023. This was primarily
attributable to net placement of US$3,461 million in securities
purchased under agreements to resell, time deposits and liquid
investment products, for better cash yield management, increase in
loans receivable of US$242 million and purchase of property and
equipment of US$133 million to support the existing operations.
UNAUDITED SEGMENT INFORMATION
The Company has three reportable segments, namely digital
entertainment, e-commerce and digital financial services. The Chief
Operating Decision Maker (“CODM”) reviews the performance of each
segment based on revenue and certain key operating metrics of the
operations and uses these results for the purposes of allocating
resources to and evaluating the financial performance of each
segment. Amounts are expressed in thousands of US dollars
(“$”).
For the Three Months ended
June 30, 2023
Digital Entertainment
E- commerce
Digital Financial Services
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Revenue
529,397
2,110,551
427,940
27,772
-
3,095,660
Operating income (loss)
296,457
65,550
120,966
(10,034
)
(189,126
)
283,813
Non-operating income, net
107,565
Income tax expense
(62,212
)
Share of results of equity investees
1,817
Net income
330,983
For the Three Months ended
June 30, 2022
Digital Entertainment
E- commerce
Digital Financial Services
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Revenue
900,258
1,749,350
279,020
13,971
-
2,942,599
Operating income (loss)
456,811
(726,127
)
(122,735)
(75,604
)
(369,041
)
(836,696
)
Non-operating loss, net
(32,765
)
Income tax expense
(64,771
)
Share of results of equity investees
3,033
Net loss
(931,199
)
(1)
A combination of multiple business
activities that does not meet the quantitative thresholds to
qualify as reportable segments are grouped together as “Other
Services”.
(2)
Unallocated expenses are mainly related to
share-based compensation, impairment of goodwill of prior
acquisition that are not under our reportable segments, and general
and corporate administrative costs such as professional fees and
other miscellaneous items that are not allocated to segments. These
expenses are excluded from segment results as they are not reviewed
by the CODM as part of segment performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230814738285/en/
For enquiries:
Investors / analysts: ir@sea.com Media: media@sea.com
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