Singapore-based tech giant Sea Group (NYSE:SE) recorded USD 1.29 billion in total revenue during the second quarter, up 93.4% year-on-year (YoY), and exceeding analyst expectations of USD 1.01 billion, according to the company’s latest earnings release.
The company’s adjusted loss per share during the quarter was USD 0.68, missing market expectations of USD 0.46 according to FactSet, but Sea Group’s share price still climbed 8.62% to USD 145.98 as of market close on Tuesday following the earnings announcement.
Sea Group’s core gaming business Garena experienced historic growth with revenues reaching USD 384 million during the quarter from USD 229.5 million in the same period of 2019, while posting a record in monthly adjusted revenue in July.
The company’s first self-developed hit gaming title Free Fire, which features battle royale style gameplay similar to PUBG and Fortnite, set a record of 100 million daily active users during the June quarter, accompanied by significant growth in the number of paying users.
Meanwhile, revenue from Sea Group’s core e-commerce business Shopee grew to USD 364.7 million from USD 165.7 million in the corresponding period of 2019, as e-commerce adoption accelerated in the wake of COVID-19.
Shopee ranked first on Android in Southeast Asia in terms of downloads, monthly active users, and total time spent, according to App Annie. In Indonesia, Shopee’s largest market, the company generation 260 million orders during the quarter, or around 2.8 million orders per day, an increase of 130% YoY.
SeaMoney, the company’s digital financing arm, continued its development as its mobile wallet product added around 5 million new users since the first quarter of 2020, reaching over 15 million users in total. In the month of July in Indonesia, Sea Group’s mobile wallet services were used to pay for over 45% of gross orders on Shopee, indicating enhanced synergy between the company’s businesses.
Sea Group’s chief executive officer (CEO) Forrest Li expressed his optimism about SeaMoney’s future potential on the earnings call, “Accelerating digitalization is driving increased needs for quick and convenient online and contactless payment options, as well as other digital financial services. We further believe that SeaMoney is in an ideal position to capture a significant proportion of that growth opportunity.”