Sea posted mixed results in the three months that ended on Jun 30, as tepid consumer spending amid a challenging macroeconomic outlook pressured its e-commerce business and caused a steep decline in its mobile gaming unit.
Revenue grew 5.2 per cent from a year earlier to US$3.1 billion (S$4.2 billion), below Refinitiv estimates of US$3.2 billion. However, per share earnings were a comfortable 12 cents higher than expectations at 54 cents, signalling gains from the cost measures.
Sea’s e-commerce business Shopee, which contributes about two-thirds to the group’s top-line, grew about nearly 21 per cent to US$2.1 billion. It was below the consensus estimate of US$2.25 billion, despite Sea posting 10 per cent sequential growth in active buyers in the second quarter and raising platform commissions earlier this year.
Sales from the digital entertainment segment, which includes gaming platform Garena, fell over 41 per cent, declining for the fifth quarter in a row. Sales from the financial services business were up over 53 per cent.
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