Sea Profit Rises on Strong E-Commerce Demand, Raises Shopee Outlook

Dow Jones
Aug 11
 
 

Sea Ltd., one of Southeast Asia's largest companies by market capitalization, posted stronger second-quarter profit and raised its earnings forecast for its core e-commerce business.

The consumer-internet titan behind e-commerce platform Shopee said Tuesday that net income increased 11% to $458.1 million for the April-June period. That beat a Visible Alpha consensus estimate for $433.83 million.

Revenue also topped market views, jumping 48% from a year earlier to $7.79 billion.

The strong performance of Shopee, Southeast Asia's largest e-commerce platform, buoyed the top line. Shopee accounts for more than two-thirds of Sea's revenue, with gaming and financial services making up the rest.

Shopee's gross merchandise value, a measure of sales, rose 28% during the quarter, while gross order volume increased 28%, the company said, both hitting record highs.

The platform's adjusted earnings before interest, taxes, depreciation and amortization climbed 12% to $255.4 million.

That led Sea to raise its full-year adjusted Ebitda projection for Shopee to $1 billion. It previously expected annual adjusted earnings for the e-commerce business to be roughly stable from 2025 in absolute dollar terms.

"Our improving operational efficiency and growing scale have strengthened our unit economics," said Forrest Li, Sea's chairman and chief executive.

Shares of New York-listed Sea surged 11% in premarket trading following the results. The stock has risen 35% over the past three months.

Monee, its digital financial services arm, remained the fastest-growing business, with revenue climbing 59%. Li said that Monee remains at an early stage of growth, with low credit penetration in the markets it operates.

Sea's gaming division, Garena, recorded a 15.5% rise in bookings--a measure of revenue--for the three months ended June.

Citi Research analysts said in a recent note that 2026 remained an investment year for Sea as it strengthens its competitiveness for long-term, sustainable growth.

"Our investments have enabled Shopee and Monee to continue to strengthen our market leadership while improving our user penetration," said Li.

 
 

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