Singapore’s Sea posts 1st quarterly profit after drastic cost cuts

Singapore-based tech group Sea on Tuesday reported its first quarterly profit since going public five years ago, as restructuring efforts that included cutting thousands of jobs and freezing salaries started to pay off.

The New York Stock Exchange-listed firm posted net income of USD 422 million for the October-December period, a turnaround from a USD 616 million loss in the same period a year ago. Group revenue totaled USD 3.45 billion, up 7% on the year.

E-commerce business Shopee posted an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of USD 196 million, turning positive for the first time. The top line rose 50% to USD 2.23 billion, led by growth in its core Asian markets, even as sales and marketing expenses were more than halved.

“Our decisive pivot to focus on efficiency and profitability since late last year is already driving meaningful bottom-line improvements,” Chairman and CEO Forrest Li said during an earnings call last Tuesday.

Sea’s share price jumped 15% at one point in early trading in New York.

Yet its core gaming business continues to struggle, with revenue dipping 33% to USD 948 million, as paying users decreased for the fifth straight quarter. Paying users totaled 43.6 million for the October-December quarter, down 44% from a year ago.

This contributed to an annual net loss of USD 1.65 billion for 2022, narrowing 19% from a year earlier. Revenue was USD 12.44 billion, up 25%.

“Given the macro uncertainty and our recent strong pivot, we are closely monitoring the market environment and we will continue to adjust our pace and fine-tune our operations accordingly,” Li added.

The stronger results came after Sea took a series of layoffs and cost-cutting measures as it prioritized reaching profitability, shifting away from an aggressive expansion to new markets and hiring on the back of a wave of demand during the COVID-19 pandemic.

Last year, aggressive rate hikes brought a deep sell-off and market correction for loss-making tech companies including Sea. The company’s share price has tumbled 80% from its peak in October 2021.

The tech conglomerate laid off more than 7,000 employees, about 10% of its total workforce, over six months through late 2022. Top management forwent their salaries and tightened company expense policies. It also limited pay raises and provided lower bonuses for employees last year.

“Most of the big changes we need to make are complete,” Li said in an internal memo sent to staff in December, which was seen by Nikkei Asia. But he added that its push toward self-sufficiency — a level with positive cash flow without relying on external funding — will be “going into early 2024.”

“With continued discipline and determination, I believe we are on track to achieve our goal,” Li said in the memo.

This article first appeared onNikkei Asia. It has been republished here as part of 36Kr’s ongoingpartnership with Nikkei.

Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here

Related Posts
Orthodontic Digital Marketing Specialists HIP Deliver Intensive Training Session at Private Event in Conjunction With Fishbein Fundamentals thumbnail

Orthodontic Digital Marketing Specialists HIP Deliver Intensive Training Session at Private Event in Conjunction With Fishbein Fundamentals

Pensacola United States – March 8, 2022 — HIP, one of the leading digital orthodontic marketing specialist companies in the United States, are delighted to announce that they recently delivered an intensive training session at a private event in conjunction with Fishbein Fundamentals. The event featured numerous exclusive and innovative strategies and proven concepts that, when followed, deliver outstanding…
Read More
Scammers have come up with a car deception scheme thumbnail

Scammers have come up with a car deception scheme

Специалисты Bi.Zone обнаружили 188 фишинговых сайтов, которые выдают себя за официальные ресурсы «АвтоВАЗа», где предлагают принять участие в розыгрыше автомобиля Lada. Об этом сообщил директор блока экспертных сервисов компании Евгений Волошин в беседе с РИА Новости.Отмечается, что злоумышленники предлагают жертвам выбрать подарочную коробку, где якобы находится приз. «Далее загружается страница с поздравлением, что вы выиграли…
Read More
How greater online regulation is prompting fears of a ‘splinternet’ thumbnail

How greater online regulation is prompting fears of a ‘splinternet’

Getting to grips with . . .Government pressure worldwide means the internet is not as open as it once wasRecommended Repeal the Eighth: how have abortion services changed in Ireland five years on?Today’s big question Repeal the Eighth: how have abortion services changed in Ireland five years on?Is it time to recognise the Taliban government?Talking
Read More
The Sheikh of Al-Azhar meets the jury of the Zayed Prize for Human Fraternity.. many messages thumbnail

The Sheikh of Al-Azhar meets the jury of the Zayed Prize for Human Fraternity.. many messages

التقى الإمام الأكبر الدكتور أحمد الطيب، شيخ الأزهر، الخميس، أعضاء لجنة تحكيم جائزة زايد للأخوة الإنسانية بالعاصمة الإيطالية روما. وحث الإمام الأكبر خلال الاجتماع أعضاء لجنة التحكيم على المضي قُدما في عملهم بالمشروع الإنساني العالمي للأخوة الإنسانية، مشددا على أن وثيقة الأخوة لم تكن يوما موجهة لدين معين أو عرقية وقومية محددة، وإنما هي للإنسان…
Read More
EPL: I don’t regret benching Ronaldo against Everton – Solskjaer thumbnail

EPL: I don’t regret benching Ronaldo against Everton – Solskjaer

Manchester United manager, Ole Gunnar Solskjaer, has said he does not regret resting Cristiano Ronaldo for their 1-1 draw with Everton on Saturday. Solskjaer’s men bungled the chance to go top of the Premier League after Andros Townsend cancelled out Anthony Martial’s opener. Yerry Mina’s late winner for the Toffees was ruled out for offside…
Read More
Two American Crises thumbnail

Two American Crises

Last January 6 was terrible. The ongoing abuse of our children in schools will do far more lasting damage. NRPLUS MEMBER ARTICLE A mericans are reflecting on two important crises this week. One, last year’s January 6 Capitol riot, was thoroughly investigated and its perpetrators are being severely punished. The other, the ongoing systemic abuse…
Read More
Index Of News
Consider making some contribution to keep us going. We are donation based team who works to bring the best content to the readers. Every donation matters.
Donate Now

Subscription Form

Liking our Index Of News so far? Would you like to subscribe to receive news updates daily?

Total
0
Share