Singapore-based tech conglomerate Sea Limited has posted a total net loss of $144 million in the third quarter, as compared to total net loss of $569.3 million for the third quarter of 2022.
Sea said in a statement on Tuesday that the year-on-year improvement of losses was mainly due to higher interest income in the third quarter of 2023.
Meanwhile, the group’s revenue increased by 4.9 percent to $3.3 billion in the third quarter from $3.2 billion a year ago.
“Our strategy for e-commerce is driven by the principle that maximizing the long-term profitability of the business will generate the greatest returns to our shareholders in the long run,” said Forrest Li, Sea’s Chairman and Group Chief Executive Officer.
According to him, maximizing long-term profitability requires scale and strong market leadership.
To achieve this long-term objective, he said the firm looks at three key operational factors: growth, current profitability, and market share gain.
In this current period, he said the firm will prioritize investing in the business to increase its market share and further strengthen its market leadership.
“This gives us a wide competitive moat, and we intend to grow it further,” he said.
He said the firm’s move to self-sufficiency and profitability in the past quarters has significantly improved both its cash reserves and operational efficiency and it sees a very good opportunity to build its e-commerce content ecosystem efficiently especially in live streaming.
He said the firm is committed to maintaining a strong cash position, not relying on external funding, and investing within its means at a time and pace of its choosing.
“At the same time, given that ecommerce penetration remains low in most of our markets, we as the market leader have a responsibility to help grow the whole e-commerce ecosystem,
According to the statement, the group’s e-commerce revenue was $2.2 billion, up 16.2 percent year-on-year.
The segment’s total gross merchandise value was $20.1 billion for the quarter, increasing by 5.1 percent year-on-year.
Its adjusted losses before interest, taxes, depreciation, and amortization was $346.5 million, as compared to $495.7 million for the third quarter of 2022.
Asia markets recorded adjusted losses before interest, taxes, depreciation, and amortization of $306.2 million in the quarter, as compared to $216.8 million a year ago.
As for digital entertainment, the segment’s revenue was $592.2 million fell from $892.9 million in the third quarter of 2022, primarily attributable to moderation in user engagement and monetization year-on-year.
The segment’s adjusted EBITDA was US$234.0 million, as compared to $239.5 million for the previous quarter.
Meanwhile, digital financial services revenue was $446.2 million, up 36.5 percent year-on-year.
The segment’s adjusted EBITDA was $165.7 million, as compared to a an adjusted losses before interest, taxes, depreciation, and amortization of $67.7 million a year ago.