Singapore's Sea tops quarterly revenue estimates as Shopee fuels e-commerce growth

Singapore's Sea Ltd beat estimates for quarterly revenue on Tuesday (Aug 11), powered by growth at its e-commerce business led by Shopee and rising demand for its financial services.

US-listed shares of the company were up 7.6 per cent in premarket trading.

Shopee has grown into Southeast Asia's leading e-commerce platform through a combination of aggressive discounting, gamified shopping features and a broad logistics network.

The company has also increasingly integrated AI into product recommendations, seller tools and customer service operations.

Sea reported revenue of US$7.79 billion (S$9.9 billion) in the quarter ended June 30, above analysts' average estimate of US$7.06 billion, according to data compiled by LSEG.

The e-commerce unit, its largest segment, saw quarterly revenue jump 48.9 per cent from a year earlier to US$4.93 billion.

Sea's digital financial products arm reported a 58.9 per cent rise in revenue to US$1.40 billion. The segment includes the Monee app, which offers services including payment processing, digital wallets and credit.

Shopee's gross merchandise value, a metric measuring the total amount of sales on e-commerce platforms, rose 28.4 per cent from a year earlier to US$38.3 billion in the quarter.

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