Sea's 3Q losses widen to US$133 mil on higher costs and expenses

Sea's 3Q losses widen to US$133 mil on higher costs and expenses

By: 
Samantha Chiew
22/11/17, 11:30 am

SINGAPORE (Nov 22): Sea, the Singapore-based online entertainment and gaming firm formerly known as Garena, announced 3Q17 ended Selosses doubled to US$132.7 million ($179.8 million) from a loss of US$65.6 million in 3Q16.

Group revenue saw a 4% increase to US$94.1 million from US$90.5 million a year ago.

The digital entertainment segment saw revenue drop by 7.4% to US$79.8 million from US$86.2 million last year.

Revenue from others segment more than tripled to US$14.3 million.

In line with the increase in total revenue, cost of sales increased by 41.9% to US$83.3 million.

Total operating expenses more than trebled to US$171.5 million, including a more than doubling of sales and marketing expenses to US$131.6 million.

See: Sea investors look to first earnings since NYSE IPO for growth

Garena’s quarterly active users increased 54% y-o-y to 69 million while paying users increased 38% to 6.5 million.

Forrest Li, chairman and group CEO of Sea, says, “We are continuing to invest for the future and are confident about the long-term potential of our business and the Greater Southeast Asia region.”

Shares in Sea last traded trading at US$14.78. 

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