Sea Limited Q2 FY2025 earnings call

• Momentum from strong start to 2025 continued into Q2, with all 3 businesses showing robust growth.
• Shopee saw stellar growth in H1, with Q2 breaking records in GMV and revenue, driven by increased active users and purchase frequency.
• Money's loan book expanded rapidly while maintaining healthy NPL ratio, with diversified markets and product offerings.
• Garena's bookings grew, with Free Fire's new map Solora and IP collaborations contributing to strong performance.
• Company turned all 3 businesses EBITDA positive since H2 last year and is accumulating cash while scaling.

E-commerce (Shopee): GMV grew 25% year-on-year in the first half, with Q2 delivering record-breaking quarter-on-quarter growth in gross order volume, GMV, and revenue. Profitability improved in Asia and Brazil, driven by expanding scale and cost efficiency. Advertising revenue grew strongly, with seller adoption of ad tech solutions increasing. Logistics cost per order reduced, delivery speed improved, and VIP membership program expanded. Digital Financial Services (Money): Revenue and adjusted EBITDA grew over 50% year-on-year. Loan book reached $6.9 billion, up over 90% year-on-year, with 4 million new borrowers. NPL ratio stable at 1.0%. Diversified across markets and products. Digital Entertainment (Garena): Bookings up 23% year-on-year, adjusted EBITDA up 22% year-on-year. Free Fire sustained strong performance, new map Solora launched to positive response, and IP collaborations with Netflix's Squid Game and Naruto Shippuden Chapter 2. Full-year bookings guidance raised to grow more than 30% year-on-year.

• Shopee expects Q3 growth momentum to carry on from H1.
• Garena raises full-year bookings guidance to grow more than 30% year-on-year.
• Money continues strong growth with diversified loan portfolio and healthy asset quality.

Q: On gaming business performance of other games besides Free Fire and AI use in gaming.

A: Forrest Li mentioned other games are in early stages, and AI used to improve retention, create immersive experiences, and assist in gameplay interactions like AI bots as teammates.