Sea reports mounting losses, president Nick Nash to depart

Sea reports mounting losses, president Nick Nash to depart

01/03/18, 03:23 pm

SINGAPORE (Mar 1): Sea, operator of Southeast Asia’s biggest gaming platform, reported mounting losses amid investments for growth and said group president Nick Nash will leave his position at the end of the year.

The Singapore-based company reported its net loss for the quarter ended in December more than tripled to US$263.1 million ($348.6 million), compared with analyst estimates that it would lose US$201 million, while total revenue climbed 41% to US$124.6 million, according to generally accepted accounting principles.

Nash, who helped lead Sea’s initial public offering last year, said he plans to start a new private-equity fund. He joined the company in 2014 from General Atlantic LLC.

“I want to share the unique experiences I’ve had to help a new generation of companies here in Asia,” Nash, 39, said on a conference call. “That sharing of learnings from one generation of companies to the next has been a hallmark of what made Silicon Valley so successful. And I look forward to continuing that tradition here in Asia.”

Sea has struggled to gain steady footing since it raised about US$1 billion in the October IPO. Its shares have tumbled while short sellers are betting on further declines. Analysts have remained bullish. Every one of the seven who cover the company recommend buying its shares, according to Bloomberg’s data, with an average target price almost 50% higher than Tuesday’s close of US$12.26.

Analysts consider Sea to be Southeast Asia’s leading growth company, with backing from Chinese colossus Tencent Holdings that should help it capitalise on the region’s adoption of games, e-commerce and digital payments. Sceptics see little evidence that Sea is developing anything resembling a business model with its mounting losses.

The company is investing in e-commerce and digital payments to bolster its games business. Its operating loss increased in the fourth quarter to US$191.1 million, compared with US$83.2 million a year earlier.

In 2018, Sea is forecasting total adjusted revenue of US$730 million to US$770 million, up from US$553.6 million in 2017.

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index. The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan. Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive. This coupled with positively placed DIs and rising ADX should continue to underpin the STI. The only cautionary signals are the somewhat overbought levels of short term stochastics and 21-day RSI, and stagnant vol....

SMI takes legal action against Hyflux; Maybank moves on Tuaspring

(Apr 20): SM Investments (SMI) has terminated its rescue agreement with Hyflux, it announced on Friday. Hyflux, on its part, had already on April 4 terminated the same agreement with SMI. SMI claims it has thus far abided by the agreement. “To clarify, SMI does not accept the purported termination of the Restructuring Agreement by Hyflux on 4 April 2019. This is because the termination was not in accordance with the terms of the Restructuring Agreement," said SMI. Under the agreement reached last October, SMI, led by Indonesian tycoon Anthoni Salim, was to have invested $530 million in....

CCT reports 3.8% higher 1Q DPU of 2.20 cents on higher property contributions

SINGAPORE (April 19): The manager of CapitaLand Commercial Trust (CCT) has reported a 1Q19 distribution per unit (DPU) of 2.20 cents, rising 3.8% y-o-y from 2.12 cents due to higher contributions from Gallileo and Asia Square Tower 2. Gross revenue and net property income (NPI) for the quarter increased by 3.5% and 3.4% to $99.8 million and $79.8 million, respectively. This comes after booking contributions from Gallileo – an office building in Frankfurt, Germany which the trust acquired a 94.9% stake in during June 2018 – as well as higher occupancy at Asia Square Tower 2, both of w....