FINWIRES · TerminalLIVE
FINWIRES

Sea Second-Quarter Revenue Tops Views Amid Gains in Shopee, Monee

By
Sea Second-Quarter Revenue Tops Views Amid Gains in Shopee, Monee

Sea (SE) reported stronger-than-expected second-quarter revenue on Tuesday as the Singapore-based company logged sharp annual gains in its e-commerce platform and the digital financial services business.

Revenue jumped to $7.79 billion for the quarter ended June from $5.26 billion the year before. The consensus on FactSet was for sales of $7.18 billion. Net income improved 7.7% to $0.70 a share.

"Our strong momentum from the first quarter has continued into the second," Chief Executive Forrest Li said in a statement. "Our investments have enabled Shopee and Monee to continue to strengthen our market leadership while improving our user penetration."

Sea's New York Stock Exchange-listed shares climbed 12% in Tuesday trade.

Revenue from the Shopee e-commerce business advanced 48% to $5.59 billion, including $4.93 billion in marketplace revenue, which rose 49%. Shopee's gross merchandise value, or GMV, rose 28% to $38.3 billion.

The company is "optimistic" Shopee will achieve $1 billion in adjusted earnings before interest, taxes, depreciation and amortization for 2026 , according to Li. The metric rose 12% year on year to $255.4 million in the second quarter.

Monee, Sea's digital financial services provider in Southeast Asia and Latin America, recorded revenue growth of 59% to $1.4 billion, amid broad-based gains across its products and markets.

"Only a fraction of the users across our ecosystem are using Monee's financial products today, and credit penetration remains low across our markets," the CEO said. "This gives us great confidence in Monee's long-term growth and earnings potential."

Revenue from Garena, a game developer and publisher, increased 34% to $746.6 million as bookings gained 16%. Quarterly active users rose to 666.3 million from 664.8 million in the prior-year quarter, while paying users climbed 10% to 68.1 million.

Last month, video game platform Roblox (RBLX) reported second-quarter bookings that missed analysts' estimates. Electronic Arts, which is now a private company, posted annual gains in June-quarter EPS and revenue last week.

In the e-commerce sector, Amazon.com (AMZN) last month reported second-quarter results that topped Wall Street's expectations, supported by strength in its cloud-computing business. The e-commerce giant raised its capital expenditure guidance at the time.

Price: $129.15, Change: $+14.35, Percent Change: +12.50%

Related Articles

Hanwha Group Proposes Up to $1.2 Billion Acquisition of Austal USA
US Markets

Hanwha Group Proposes Up to $1.2 Billion Acquisition of Austal USA

Australian shipbuilder Austal (ASX:ASB) received a non-binding, conditional proposal from a unit of South Korea's Hanwha Group to acquire its U.S. operations for an indicative enterprise value of up to $1.20 billion.Hanwha Defence USA has offered $1.05 billion to $1.20 billion for the relevant Austal USA entities and operations, according to a Tuesday press release.The proposal remains subject to Hanwha completing due diligence, obtaining regulatory approvals, and agreeing on definitive transaction documents.Under the proposal, Hanwha would acquire 100% of the shares in the relevant Austal USA holding entities, or such other transaction structure as may be agreed.Austal said the offer does not include any publicly traded shares in the company or its core Australasia operations in Australia, the Philippines, and Vietnam.Its sovereign shipbuilding mandate in Australia under its strategic agreement with the Commonwealth would also remain intact and unaffected by the proposal.The Austal board and its advisers have assessed the proposal and determined that it merits further evaluation.Hanwha will have a four-week period, starting once the requested due diligence information is made available, to review Austal USA's business and contracts, engage with key U.S. government counterparties, and advance transaction documentation."Should a more certain proposal be received from Hanwha, that proposal will be assessed by the Austal Board, having regard to the inherent value of Austal USA, and acting in the best interest of all Austal shareholders," Austal said.The proposal is not subject to a financing condition. However, Austal said there is no certainty that Hanwha will submit a further proposal or that any proposal will ultimately result in a definitive agreement.

ASX:ASB
CESC Unit to Buy 1.4 GW Solar Assets From ReNew For INR48.6 Billion
US Markets

CESC Unit to Buy 1.4 GW Solar Assets From ReNew For INR48.6 Billion

Indian electric power distributor CESC (NSE:CESC, BOM:500084), through its renewable energy unit Purvah Green Power, has signed a share purchase agreement to acquire 100% of six ReNew Solar Power subsidiaries holding 1.41 gigawatts of installed capacity at an enterprise value of 48.6 billion Indian rupees.The enterprise value excludes a contingent payment of an estimated 2.3 billion rupees, payable only if there is additional realization from a change-in-law claim, according to a filing with the National Stock Exchange of India on Monday.Cash consideration payable at closing is 15.8 billion rupees, comprising 5.89 billion rupees for share capital and a 9.93 billion-rupee infusion of unsecured promoter debt used to repay existing promoter debt at the target companies.The six target companies - ReNew Hans Urja, ReNew Solar Photovoltaic, ReNew Wind Energy (Karnataka 3), ReNew Wind Energy (MP Four), ReNew Wind Energy (Karnataka 4) and ReNew Agni Power - are held across project special purpose vehicles in Rajasthan and Karnataka.More than 90% of the acquired capacity is contracted with state-run Solar Energy Corp. of India under 25-year power purchase agreements, with the balance tied to Karnataka distribution companies, CESC said.No governmental or regulatory approval is required for the transaction, which is funded by the parent company and expected to close before Oct. 31.Upon completion, the six companies will become step-down subsidiaries of CESC.The deal lifts Purvah's total contracted renewable capacity to 4.8 gigawatt-peak from about 3.4 GWp, as the company aims to reach 10 GW of renewable energy.Purvah was established in December 2023 and develops and operates utility-scale solar, wind and hybrid renewable energy assets across India.

BOM:500084NSE:CESC
Update: S&P 500 Retreats From Record, Oil Jumps as Hormuz Reopening Hopes Fade
US Markets

Update: S&P 500 Retreats From Record, Oil Jumps as Hormuz Reopening Hopes Fade

(Updates with market moves at the end of the day, and other changes, if any.)US equity benchmarks fell Monday, with the S&P 500 pulling back from a record high as oil prices rose amid doubts that the Strait of Hormuz will reopen soon.The large-cap index closed 0.1% lower at 7,753.11, after reaching a new peak in the previous session. The Nasdaq Composite declined 0.3% to settle at 26,605.36, while the Dow Jones Industrial Average edged down 0.1% to 53,975.98.Among sectors, real estate led the laggards, while energy topped the gainers.West Texas Intermediate crude oil jumped 5% to $82.05 a barrel in Monday late-afternoon trade, while Brent climbed 4.8% to $87.55.Iran has reportedly laid out new terms for reopening the Strait of Hormuz, including a permanent end to the war against Tehran and its allies, as well as demanding full compensation for war damages.US President Donald Trump on Monday demanded compensation from Iran "for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts."In another social media post, Trump said that "Iran should be responsible for the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza."Trump has signaled that he's prepared to exert greater economic pressure on Iran instead of launching another military attack, Axios reported Sunday."Oil prices remain supported by uncertainty surrounding the Strait of Hormuz," ING Bank said in a report Monday. "Significant hurdles remain before any broader agreement is reached."US Treasury yields were higher, with the two-year rate up 3.5 basis points at 4.24% and the 10-year rate rising 4.3 basis points to 4.7%.Cleveland Fed President Beth Hammack told Yahoo Finance that more than one interest rate hike may be needed to curb US inflation.Hammack was one of the three dissenters who called for a quarter percentage point rate hike last month, when the Federal Reserve left monetary policy unchanged for a fifth time.In company news, Intel (INTC) plans to raise $15 billion to support capital expenditures as demand for artificial intelligence computing remains strong. The stock fell 4.1%.Teledyne Technologies (TDY) has agreed to acquire X-ray imaging components manufacturer Varex Imaging (VREX) in a $1.1 billion deal that will expand its X-ray device portfolio to include oncology detectors. Varex shares surged 49%, while Teledyne edged down 0.2%.Some 11 S&P 500 companies are scheduled to report results this week, including Cisco (CSCO) and Applied Materials (AMAT).So far, 443 companies, or 89% of the index constituents, have reported results in the current cycle, with profit growth slowing to 51% from about 57% a week ago, Oppenheimer Asset Management said in a report Monday.Spot gold rose 1.1% to $4,388.79 per troy ounce, while silver advanced 4.2% to $66.19 per ounce.

Dow JonesNasdaq CompositeS&P 500$AMAT$CSCO$INTC$TDY$VREX