Sales in its gaming business Garena shrunk 19% year-on-year to $893 million in theas a pandemic-induced enthusiasm for the pastime fades. Its e-commerce unit, Shopee, which now accounts for 63% of the top line, is compensating. Overall group revenue grew 17% to $3.2 billion in the quarter, beating analyst estimates.
Importantly, e-commerce revenue costs just 71% to service and the ratio is receding at the fastest pace in a September quarter in three years. Sea is now working toward achieving Shopee’s adjusted EBITDA breakeven by the end of 2023. The improvements will shore up support for its decision to remain in Brazil, a big emerging market.
Sea’s shares rose 36% on Tuesday but they remain 80% below their November peak. Its journey to reclaiming its position as Singapore’s most valuable public listed company, a position held by the $66 billion lender DBSCapital Calls - More concise insights on global finance: