Sea Group, the Singapore-based internet company that provides e-commerce, digital payments and gaming services, has posted impressive Q1 2023 numbers, with revenues increasing by 4.9% YoY to $3 billion. Gross profit also grew by 21.1% YoY, standing at $1.4 billion compared to $1.2 billion in Q1 2022.

The gaming giant’s EBITDA increased by almost $1 billion, with the company reporting losses of $509.9 million in Q1 2022 compared to earnings of $507.2 million in Q1 2023. Despite suffering losses of $580.1 million in Q1 2022, its net income surged to $87.3 million in Q1 2023, negatively impacted by $117.9 million impairment in goodwill associated with its previous acquisition.

Forrest Li, Sea Chairman and Group Chief Executive Officer, expressed satisfaction with the Q1 performance, saying: “The results for the quarter are a testament to our team’s commitment and creativity. We have innovated to do more with fewer resources, while never losing sight of our commitment to our users, and never letting our service standards fall. Across our business, we have been focusing on maximizing operational efficiency and improving user experiences. And we continued to make meaningful progress on both fronts.”

Sea executives remained bullish on the company’s long-term prospects despite the decline reported in its digital entertainment branch, especially gaming division, which was one of the worst-performing sectors. Sea generated $539.7 million in revenue from its digital entertainment division in Q1 2023, a 43% decrease from $948.9 million in Q4 2022.

The company also reported a fall in bookings by 15% QoQ, standing at $462.3 million compared to $543.6 million in Q4 2022 and adjusted EBITDA for digital entertainment also decreased by 11% to $230.1 million from $258.2 million over the same period. The number of quarterly paying users fell from 43.6 million in Q4 of 2022 to 37.6 million in Q1 of this year while quarterly active users increased to 491.6 million in Q1 from 485.5 million in Q4 2022. However, the adjusted EBITDA as a percentage of bookings rose to 2.3% QoQ, standing at 49.8% compared to 47.5%.

Nonetheless, Sea Group remains optimistic about its future in the industry, promising to continue prioritizing user experiences as it navigates a volatile market and macro uncertainties. Besides, gaming still contributes significantly to Sea Group’s digital entertainment division, and there is much room for growth, as the company continues to innovate its content and explore new markets.

Source: PocketGamer.biz