Salem Radio Network News Thursday, July 7, 2022

Business

Shopee-owner Sea tops revenue estimates on e-commerce strength

(Reuters) -Singapore-based Sea Ltd beat quarterly revenue estimates on Tuesday, driven by improvements in its core e-commerce business in South East Asia and Latin America, sending its shares up over 5% in premarket trade.

Sea pushed the peddle on international expansion moving into newer markets including Chile, Colombia and Mexico over the last two years amid a pandemic-driven boom in e-commerce and digital entertainment.

The company, however, struggled to keep up with its rapid expansion and had to exit some of its newer markets such as India and France to subsequently focus on South East Asia, its home turf.

Sea widened its full-year 2022 e-commerce revenue outlook range to between $8.5 billion and $9.1 billion, compared with $8.9 billion to $9.1 billion forecast earlier.

“As we enter a new period, we recognize that the current macro trends and uncertainties could affect our region and the world in the near to mid-term,” Sea Group Chief Executive Officer Forrest Li said.

In the reported quarter, Sea e-commerce revenue jumped 64.4%, while its digital entertainment segment revenue grew 45.3%.

Sales from its newer business line, financial services, grew over 350% to $236 million.

Total revenue at the New York-listed company rose 64.4% to $2.90 billion in the first quarter ended March 31, above analysts’ average estimate of $2.76 billion, according to Refinitiv IBES data.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi)

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