2023-03-09
Sea Limited, the company owns a game studio called Garena and also does E-Commerce platform Shopee has recently release 2022 fourth quarter results. In response to positive financial results stock price rose 29% in the past 5 days after the company was able to make a profit for the first time in the fourth quarter of 2022.
Fourth Quarter 2022 Results
-Its fourth
quarter revenue was US$3.5 billion, up 7.1% year-on-year.
-Total gross
profit was $1.7 billion, up 29.5% year-on-year.
-E-commerce revenue was US$2.1 billion,
up 31.8% year-on-year.
-Digital
entertainment revenue was $948.9 million, up 6.3% year-on-year.
-Digital
finance services revenue was $380.2 million, up 92.5% year-on-year.
The
company’s net profit was $422 million (total net income turned positive to
$422.8 million), from a loss of $616 million in
the same period last year. The reason why the company can make a profit comes
from cost reductions such as layoffs, and reduction in advertising costs.
About Sea Limited
Sea Limited was founded in 2009, it is
a holding company with three businesses under its umbrella including Shopee, Garena,
and SeaMoney. Shopee is the competitor of Lazada in Southeast Asian E-commerce
market. The company started out as a game studio called Garena. It is the
developer of the famous game Free Fire. SEA founded SeaMoney in 2014, it
provides financial services similar to PayPal and Venmo. Shopee was founded in
2015. Sea is backed by Tencent as Tencent invested in the company. It went
public in the New York Stock Exchange in 2017. Currently it has the market cap
of $44 billion. Sea founder is Forrest Li, his net worth is $5 billion.
Reference
https://cdn.sea.com/webmain/static/resource/seagroup/website/investornews/4Q2022
