E-commerce Growth Bolsters Revenue as Net Losses Expand
Singapore-based Sea Group, owner of Shopee and Garena, reported a sharp rise in revenue for Q3, reaching US$2.7 billion, a 122% increase year-on-year. Despite this growth, net losses deepened to US$450.1 million, compared to US$340.8 million a year earlier. Gross profit climbed 147.5% to hit US$1 billion.
E-commerce Segment Highlights
Revenue from the e-commerce division surged 134% to US$1.5 billion, driven by higher gross orders, which grew 123% to 1.7 billion, and an 81% increase in gross merchandise value to US$16.8 billion. Sea revised its 2021 e-commerce revenue forecast upward to US$5–5.2 billion. However, the adjusted EBITDA loss for the segment widened to US$683.8 million.
Kristine Lau of Third Bridge attributed Shopee’s success to its effective pricing strategy and strong market presence, though competition from Lazada and Tokopedia remains intense.
Gaming and Financial Services
In digital entertainment, revenue rose 93% to US$1.1 billion, with bookings increasing by 29% to US$1.2 billion. The SeaMoney mobile wallet also gained traction, with payment volume doubling to US$4.6 billion, alongside a rise in active users.
Strategic Moves
Sea continues to invest heavily, raising US$6.3 billion earlier this year. The company also announced Chris Feng’s promotion to Group President effective January 2022, highlighting its commitment to leadership and growth.
Sea’s shares closed at US$343.02 in New York, reflecting modest investor confidence despite the widened losses.
