Daily BriefsSingapore

Singapore: Sea Ltd and more

In today’s briefing:

  • Sea Ltd (SE US) – Reading the Positive Signals
  • Sea Ltd: In Rough Seas

Sea Ltd (SE US) – Reading the Positive Signals

By Angus Mackintosh

  • Sea Ltd released a solid set of 1Q2022 results, with very strong YoY growth in e-commerce GAAP revenues, and a predictable softening of gaming revenues given greater mobility in 1Q2022. 
  • A key highlight was improving profitability with the adjusted EBITDA loss per order falling 70% in South-East Asia and Taiwan. Management also signalled that gaming revenues started stabilising end 1Q2022.
  • Sea Ltd (SE US) saw a strong rally post these results given guidance was maintained albeit with a wider range. Sea Ltd is now trading at a discount to peers.

Sea Ltd: In Rough Seas

By Oshadhi Kumarasiri

  • Sea’s share price rose 14% yesterday after beating consensus revenue by 1.4%, but this seems unwarranted as Sea lowered the lower-end of the e-commerce revenue guidance by $400m to $8.5bn.
  • Nonetheless, most of this price reaction could be short covering as Sea Ltd (SE US)’s results were rather disappointing on multiple fronts.
  • With Free Fire faltering fast, we think Sea could get washed back to rough seas before reaching calm waters.  

Before it’s here, it’s on Smartkarma