Shopee owner Sea posts net loss of $1.28 billion in second quarter

SINGAPORE (BLOOMBERG) — Shopee owner Sea posted a bigger-than-expected loss in the second quarter and withdrew its e-commerce forecast for 2022, joining other online giants struggling to gauge an economic outlook. increasingly uncertain world.

The Singapore-based company on Tuesday posted an adjusted loss before interest, tax, depreciation and amortization of $506.3 million for the three months to the end of June, beating the average projection of $482.3 million.

Sea’s net loss more than doubled to $931.2 million in the June quarter from $433.7 million a year ago amid higher overhead and loss provisions on receivables.

Sea shares fell 14% on Tuesday to close at $77.43 in New York.

The disappointing result came after Sea slashed its full-year e-commerce revenue outlook in May to a low of $8.5 billion from $8.9 billion previously. Shoppers emerging from pandemic shutdowns are reducing their online purchases and turning to basics during a possible recession.

Sea, which counts Tencent Holdings as its biggest investor, has suffered a series of setbacks this year, including a sudden ban on its most popular mobile game in India and the subsequent shutdown of its e-commerce operations there. Its shares have fallen about 75% since the October high.

The company has been trying to increase profitability as revenue growth plateaus. Second-quarter sales rose 29% to $2.9 billion, the slowest growth in nearly five years.

Sea’s net loss more than doubled to $931.2 million in the June quarter. PHOTO: SEA LIMITED

Ann J. Cox