Sea’s losses widen amid revenue growth; president will step down end-2018

Nick Nash, Sea’s outgoing group president, at Tech in Asia Tokyo 2016 / Photo credit: Tech in Asia

Sea reported both increased revenues and wider losses across each of its businesses in its fourth quarter and full year results, which it released today.

Here are the key Q4 2017 results from Sea’s three businesses – Garena (gaming and entertainment), Shopee (ecommerce), and AirPay (digital financial services):

  • For the three months ending December 31, the group as a whole booked adjusted revenue of US$165 million, up 72.8 percent on Q4 2016 and 8.3 percent on Q3 2017.
  • It made an adjusted net loss of US$252 million for the quarter, up 306 percent from Q4 2016’s US$62 million net loss.
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was negative US$140 million for the quarter, wider than Q4 2016’s negative US$56 million.
  • Digging down, Garena’s adjusted revenue was US$142 million, up 59.2 percent from Q4 2016 and up 5.3 percent from Q3 2017. It forms the bulk of the group’s revenue.
  • Garena’s quarterly active users increased 74.2 percent year-on-year to 87.8 million.
  • Shopee’s adjusted Q4 2017 revenue was US$9.3 million, up 61.6 percent from Q3 2017 (no ecommerce adjusted revenue was reported for Q4 2016).
  • Shopee’s gross merchandise volume was US$1.6 billion for the quarter, a year-on-year increase of 206.1 percent, and 48.3 percent quarter-on-quarter.
  • AirPay revenue increased 140 percent year-on-year to hit US$4.1 million in Q4 2017.

The Singapore-based internet company also said it is set to lose Nick Nash, who will step down as group president at the end of this year.

He retired from his position on Sea’s board of directors last week, with group chief financial officer Tony Hou taking his place.

No replacement as group president has been named.

Nash joined the company – then named Garena – in December 2014, after a decade-plus stint at US investment firm General Atlantic.

Tech in Asia has contacted parties for comment, and will update this article as necessary.

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