Important points
- Sea Limited reported better-than-expected quarterly results with higher sales in its e-commerce and financial services businesses.
- The Singapore-based consumer internet provider posted its first annual profit since going public.
- Sea Limited's ADRs have narrowed their initial rise and have remained in negative territory for the past year.
SE Limited's (SE) American Depositary Receipts (ADRs) fell on Monday after the Southeast Asian consumer internet company reported better-than-expected results on higher sales in its e-commerce and digital financial services sectors.
The Singapore-based company reported a loss of $0.19 in the fourth quarter, with revenue up 4.8% to $3.62 billion. Both exceeded expectations. Full-year net income was $162.7 million, the company's first annual profit since going public in 2017.
Quarterly sales at the company's online shopping site Shopee rose 23.2% to $2.6 billion, while sales at financial services platform SeaMoney rose 24.3% to $472.4 million. Garena digital entertainment business revenue decreased 46.2% to $510.8 million.
CEO Forrest Lee said Shi said the company ended 2023 with a “much stronger balance sheet,” with its cash position increasing to $8.5 billion.
Chief Financial Officer Tony Hou said on a call with analysts that the company's competitive environment has been more stable in the past few quarters, and that Xi faces “the fiercest competition.” Despite this, he pointed out that the company was able to gain market share while improving economic efficiency.
Sea Ltd.'s ADRs were up more than 5% at $53.75 as of 1:12 p.m. ET Monday, but are down about 18% over the past year.
TradingView
