Sea Limited has reported a net loss of US$1.62 billion ($2.16 billion) for the FY2020 ended December, 11.4% higher than the net loss of US$1.46 billion for the FY2019.

The figure includes share-based compensation and changes in fair value of the 2017 convertible notes of US$1.3 billion and US$867.8 million for the FY2020.

4QFY2020 saw net loss of US$524.6 million, 86.1% higher than the net loss of US$281.9 million in the same period a year ago.

FY2020 and 4QFY2020 net loss excluding share-based compensation and changes in fair value of the 2017 convertible notes stood 53.7% y-o-y higher at US$1.33 billion, and 79.3% y-o-y higher at US$430.7 million respectively.

On a fully diluted basis, loss per share for the FY2020 and 4QFY2020 came in at US$2.78 and 87 US cents respectively.

FY2020 total GAAP revenue stood 101.1% y-o-y higher at US$4.38 billion due to a broad-based growth across all three segments, especially in e-commerce and other services as well as sales of goods.

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This was due to an increased user base, deepened paying user penetration, the growth of Sea’s e-commerce marketplace, as well as an increase in its product offerings.

Total gross profit for the FY2020 surged 123% y-o-y to US$1.35 billion due to higher gross profit margins (GPM) from digital entertainment and e-commerce and other services. The higher GPM from digital entertainment was attributable to higher revenue contributions from the group’s self-developed game, while higher GPM for e-commerce and other services was mainly due to take-rate growth.

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Total cost of revenue for the FY2020 increased 92.7% y-o-y to US$3 billion due to higher costs from its three segments.

Other operating income for the FY2020 increased by 1,093.5% y-o-y to US$189.6 million due to rebates from e-commerce related logistics services.

The group also saw an increase in sales and marketing expenses, general and administrative expenses, research and development expenses during the FY2020.

Sea reported a non-operating net loss of US$179.9 million due to interest expense on convertible notes.

Similarly, 4QFY2020 total GAAP revenue grew 101.6% y-o-y to US$1.57 billion on the back of higher contribution from all segments.

Total gross profit stood 101.5% higher y-o-y at US$533.7 billion for the same reasons as the FY2020.

Total cost of revenue for the quarter also surged 101.6% y-o-y to US$1 billion on higher cost of revenue across all segments.

Other operating income for the 4QFY2020 increased by 1,108.6% y-o-y to US$72.7 million due to rebates from e-commerce related logistics services.

Likewise, Sea posted an increase in sales and marketing expenses, general and administrative expenses, research and development expenses during the 4QFY2020.

In digital entertainment, Sea’s “self-developed global hit game, Free Fire, “was the most downloaded mobile game globally for 2020, according to App Annie, maintaining this leading position for a second consecutive year,” it says in a March 2 statement.

“Free Fire continued to be the highest grossing mobile game in Latin America and in Southeast Asia for the fourth quarter and for the full year of 2020, according to App Annie. Free Fire has maintained this leading position for the past six consecutive quarters,” it adds.

On e-commerce, Shopee registered over 430 million orders in Indonesia, registering a 128% y-o-y growth.

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“Shopee also ranked first in Indonesia by average monthly active users, total time spent in app on Android, and downloads, in the Shopping category for the fourth quarter and for the full year of 2020, according to App Annie.”

“Both in Southeast Asia and in Taiwan, Shopee ranked first in the Shopping category by average monthly active users, total time spent in app on Android, and downloads, for the fourth quarter and for the full year of 2020, according to App Annie,” it adds.

In the 4QFY2020, Sea says it continues to register strong growth in the adoption of SeaMoney’s offerings.

Its mobile wallet total payment volume exceeded US$2.9 billion for the quarter and US$7.8 billion for the full year of 2020.

For the FY2021, the group expects bookings for digital entertainment to come in between US$4.3 billion and US$4.5 billion, with the midpoint representing a 38.1% y-o-y increase from FY2020.

“We also expect GAAP revenue for e-commerce to be between US$4.5 billion and US$4.7 billion. The midpoint of the guidance represents an increase of 112.3% from 2020,” it says.

As at 8.28pm (SGT), shares in Sea Limited are trading 5.4% up at US$248.51.