C Game revenue estimates top, e-commerce slowdown offsetting

(Bloomberg) – C Ltd’s core gaming revenue grew faster than expected in the first quarter, slowing across the rest of the Internet giant’s business in Southeast Asia as online activity receded from the height of the epidemic.

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Ocean Gaming Arm, its most profitable division, sold $ 1.14 billion, compared to estimates for less than $ 930 million. Its shares rose more than 10% in trading before the US Exchange opened.

The Singaporean company’s large e-commerce business has performed poorly though. Consumers arising from prolonged lockdowns are cutting back on online shopping, especially as the war in Ukraine and rising interest rates cloud the global economic outlook.

C revised its full-year outlook for e-commerce sales, its main source of revenue, from $ 8.5 billion to $ 9.1 billion, up from its previous guidance of $ 8.9 billion to $ 9.1 billion. The company also made huge losses in the first three months due to rising costs.

Read more: Ocean founder loses $ 17 billion in one of Tech’s biggest wipeouts

Key insights

  • The epidemic sparked a rally in online shopping and gaming shares as consumers spent more time and money online, helping Sagar become the most valuable company in Southeast Asia. But selling larger technology, shutting down its e-commerce operations in India and disappointing earnings erased its value by 81% from the top in October.

  • Shopi, the first-quarter revenue from Ocean’s e-commerce unit, rose 64% to $ 1.5 billion, from an estimate of $ 1.7 billion.

  • Revenue from gaming arm Garena rose 45% to $ 1.1 billion. The company said in March that it would post েনা 2.9 billion to েনা 3.1 billion in Garena bookings in 2022, its first fall.

  • Revenue from SeaMoney, the digital financial services unit of the sea, more than quadrupled to $ 236 million.

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  • Net losses for the first three months rose to $ 579.8 million from $ 422.7 million a year earlier. Total revenue rose 64% to $ 2.9 billion, the slowest pace of growth in more than four years.

  • Research and development spending rose 141% to 340.4 million, mainly due to increased key calculations and higher staff costs due to investment in technology.

  • Sales and marketing costs jumped 48% to 1 billion.

  • The total business value of Shoppe, the volume of transactions flowing through its platform, increased by 39% to $ 17.4 billion.

  • Total payments for Ocean’s mobile wallet rose 49% to $ 5.1 billion.

  • Sea Ltd FY expands e-commerce revenue forecast

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