SE - Earnings call transcript Q1 2021

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Operator

Good morning and good evening. Welcome to the Sea Limited's First Quarter 2021 Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. Please note this event is being recorded. to conference like to now would turn over the Ms. I Song. Ju Min go Please ahead.

Min Ju Song

welcome first Group Sea's call. everyone, to Hello, and XXXX Office. Min Song Officer's I Ju quarter from Corporate Sea's Chief am conference earnings

certain call these of Before release. such understanding adjusted we remind enhance we discussion as flows uncertainties subject measures a make non-GAAP share-based complement reasons includes used as when may future cash and inherently investors' a EBITDA disclosures. stated financial like excluding Also, of may to loss statements, our are compensation. realized risks as our businesses, GAAP you for our in of which the actual that forward-looking and to measures net I continue, would the We major believe this can our to and press not in be various

the a our Officer, me with measures, and Executive closest Forrest GAAP reconciliation Yanjun discussion Hou; non-GAAP Non-GAAP Group Officer, and Chief Officer, Sea's For Li; Measures Tony and to Wang. on of Chief financial have Group Financial measures Chief with the release. section I Corporate Financial refer use please Chairman of Group the press in

call updates, Our you have. by With for This management will to we any questions share a which over welcome the operating Forrest. strategy be Q&A quarter that, of highlights business me will and performance followed first financial and the XXXX. session turn in let

Forrest Li

for today's you, Minju. and Thank call. as everyone, you joining Hello, thank always

performance growth our recovery second region activities our Even the on half our note continued the a quarter with all strong lifestyle. our healthily report since represents top happy demonstrates in of reached users' are year-on-year of ability growth year, businesses. and high online We've the efficiently we year This line XXX% the businesses. compared for which We of first GAAP communities revenue was the in to XXXX, growth deploying year once XXX% the bottom and in strong rising growth. on the of first of start results showing profits, million both strong the particularly which billion, with the loss offline XXXX, XXXX EBITDA adjusted pleased continue as in to a that resources the we're group a Sea's to $XX.X performance regions of still capital quarter in benefits strong for the operate the the growth to and our and of million, recorded ago. again we embrace potential revenue At $XX.X level, adoption industry serve while high and $X.X to $XXX.X million, capture while shows is digital engagement across on across effectively up terms gross

is cases countries. challenges. of ongoing this our our continue of people significant more to important Sea, on it helping increases needs the result benefit pressing term our focus to At most we the recent our the in discuss to communities, as part in ongoing including businesses and impact we as communities growth from near to economy. helping these our navigate includes This are in play well committed support of sustained communities address small of the detail, the face note the challenges of a pandemic, performance many in that business consumers, Before to we some serve as whole

which identify can support we global term tangible are hard near our communities. working ways Our in offer teams to to

the package logistics of personnel contribute pandemic. West Office doses delivery in healthcare in Bandung, up Java the second fight who other our For against for with a providers, vaccination a we launched workers, In XX,XXX the deliver set collaboration of example, vaccines. and to recently Health in the we series Indonesia frontline center and Philippines,

adjust a are the mindful mobile and the We we region prepaid Shopee of around many shock their its devices to their and to the that have from Wi-Fi digital of successfully initiatives from are economy, the businesses offered to them families. voucher year still and the recovering income Meanwhile, to businesses, small last an and invest generate and more discount package we partners. scale provide them help continue for exclusive in

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to during continue also groom We difficult period. tailors this

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in-game introduced when local celebrities. We also character on the based received positive very feedback popular we

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are and festival we highly introduced festival, fulltime video content the success. of key to all special a around million drivers Indian engagement community In XX first music e-sports for a efforts popular Holi community views. Our quarter,

e-sports like than channels. organized views our Free million more million the audience Fire of tournament League In flagship also Facebook,Youtube X.X event an and April across and XX Latinoamerica World media other of social XXXX. online generated Garena online We

was fans X-day an the and of other immersive Thailand, event and fully we in experience. During the reality, augmented hosted with and virtual animation interactive technologies our that provide visual effects combination used to

live hosted viewers express screening avatars chat. platform their example dedicated where and can views a customize their through For we

XX our ability X demonstrated This also regions with adapt We to our teams game online from to fast environment event welcome tournament. compete and technology. users changing in deepen to our engagement through successfully to

only for in not winning of content also than Game. Free on pre-pandemic and Pocket received the best Gamer markets even call since also XXXX We spent quarter gradually activities terms active at Indeed, of the rollout to named Free award users' has business. clear of the the delivered core strong eased user Battle through community-building Royale performance Free emphasis Garena as Fire with publisher our Fire analysis shows stressing remains far but have mobile financial and platform grow time Free These and strict higher daily number user on a efforts results, second a metrics our levels. been that best Fire Awards continuous in for and XXXX, lockdown awards in Fire the

for still have that playing to active Fire days. encouraged especially user these even users are paying cohorts. user, early spent though and been are other We these time The Free see since per rising ratio,

than displaying a higher over than faster New time. paying cohorts cohorts also ratio stronger start older cohorts, and off user older growing

Looking our better deep communities ahead, and engage we to continue e-sports for of further a partnerships, exciting activities pipeline of ever-growing global and fresh content, plan to innovative users. with

A game opportunities. of while are collaboration our on our game working and new third-party strong. the development X,XXX also working ensure continue studios engage long-term to we developers pipeline forming are that skin number to ideas more significant for constantly promising with complementary on gains We publishing remains than for and globally in-house

billion, on quarter, reported grew billion Let first XXX more for building of to gain year exceptional year. million. performance quarter, on to Shopee year, on Shopee of us revenue on momentum attract gross GMV in and a turn GAAP and as sellers. up $XX.X e-commerce. the continues In increase the stellar year $XXX.X this year to year buyers delivered X.X XXX% and fourth XXX% results orders, XXXX

growth the year-on-year our market continues rate in order Our to leadership. quarter strengthening accelerate underscoring

efficiencies active Southeast first growth monthly and further Shopee's continue users Taiwan. the Indonesia, accelerated while in In rank order first for same shopping $X.XX largest Asia to continued app once Shopee we XX% quarter, our fell According demonstrating operations the pleased rank it loss year to even EBITDA that growth. growing for adjusted order invest to note in are of quarter. as e-commerce and our the in average to to of market, total App those the the metrics again, time-spending to the The We on across continue we core gross year during Android category Annie, year-on-year declines on quarter.

to We also reception Brazil. saw growing user platform our in

will with continue and accept there enhance to trends and opportunities our platform carefully offerings the the We invest continually to efficiency users. to

execution key out more performance the to the everything of about we output. In the brand. first extent our on we optimizing sellers Shopee's the maximizing success. focus load driving factor of are remains based Our on quarter, the our we regional In relentless excellence do, initiatives support and

As to future program step-by-step an them March Singapore with example, online. a transition in feel work to for sellers, to small-medium successfully we help offer up

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focus to the the than onset of capture and XX,XXX. and our our total turn, We the buyers the and, share in targeted we committed hyper-local long for efficiencies will pandemic. has friends can despite the to for penetration efficiency investing over with offer change in that remain highly happy value believe more in us grown the the alongside attractive are e-commerce to best the with we and invest our conclude, other market number We since digitalization approach long-term run. low sustainable to to Against long Mall To ecosystem a backdrop, with that working to this Shopee remains of of term, build potential stakeholders. and believe sellers commitment healthy allow that

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In continued growing from to Shopee, of use leveraging range expand on-platform addition on the cases our use and to cases. strong off-platform we've

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first-quarter across to has a As To business, results attractive well-positioned apply efficiency and have resource the great our the industry we so as our are impressively and we is Each businesses from businesses start far. and performed we our scale will conclude, year. to this achieved same of long-term discipline, benefit potential.

our new adoption resume, a we As also to tailwind our stressing moat position rising to expect keep competitive efficiently continues opportunities. digital for for and well online Sea's prudently and to activity investing for We'll sustained be growth. ourselves

we small-medium people our serve commitment businesses determined digital communities are Tony to to enable invite from Our benefit consumers discuss and technology to I that, stronger are With more with our the and to economy. than ever, across will financials.

Tony Hou

everyone Thank you, joining to call. thanks the Forrest and for

with tables, release Forrest management press in our We has have analysis highlights. of discussed financial detailed included and some the today's corresponding financial together

on So I metrics. the will comments other relevant focus my

For in these This as to better billion. partnerships dividend capture we Fire. year-on-year we ability e-commerce The the growth Sea revenue product strong $XXX.X users' value to XXX% entertainment entertainment our loss demonstrated overall, an our million. our the net new year-on-year for e-commerce year of total $XXX.X line Digital total E-commerce revenue bookings of and EBITDA EBITDA to strong our billion. continue year and $X.X represents revenue among year of top was offerings of as GAAP as the game $XXX.X base, increased of we business our was growth paying and was our as business, mainly included Digital self-developed the users. self-developed up adjusted strong our our XXX% on growth growth, was first opportunities This on and year needs, mainly greater penetration accelerated to to million, grew to our XXX%. the well XXX% revenue results engage by user continue to enhance XXX% million was This The entertainment on revenue and up GAAP deepening our by primarily due $XXX.X performance driven through $XXX.X paying adjusted up our digital was increased marketplace continuously increase million, tools year year-on-year. and especially content, events. of esports On bookings. confusion active to was grow $XXX.X of year e-commerce, roll $X.X community to out user to GAAP share [ph] XXX% million. create GAAP as quarter our driven growth Free serve game million.

primarily was first non-operating to was investing committed million, ecosystem of year-on-year growth GAAP our million, consolidated from the adoption. in of loss quarter non-operating to As We financial of fully users a to was of offerings. to million numbers, we net loss as EBITDA of in This a of $XX.X million to of Digital primarily first service first remain $XX.X services the our compared we same an to due to in continued compared of we increasing $XXX.X suite capture efficiently The was better. serve the net recognized income revenue our increase million $XX.X quarter to continued quarter XXXX. in our XXX% in the wallet of Adjusted opportunities markets. in our a XXXX. the our due and XXXX growing XXXX. continued expand million loss $XX.X traction efforts $XX.X mobile period Returning to to drive investments

interest of a in expense loss notes. primarily withholding of in of the non-operating apparently was due XXXX, net corporate tax XXXX business. the expense to to tax due convertible income and recognizing and had first which quarter was quarter Our first on increased We digital tax $XX our million income entertainment

As excluding first With call in period million to $XXX let $XXX.X was a in same loss, me net quarter the share for that, XXXX, turn as million Yanjun. of the compared XXXX. the compensation based result, to

Yanjun Wang

Forrest you, Tony. Thank and

ready Operator? questions. call the are for We open now to

Operator

your Thomas Our Please Instructions] from from ahead. Thomas, go comes first [Operator line Chong is Jefferies. question muted? Hello

Thomas Chong

[Indiscernible]

Yanjun Wang

Thomas. Thanks,

lifecycle I'll your users the region, as Regarding is question correct? of whether your Fire, question, RPTU first. super LatAm isn't coming well clear. Free question and this is drivers sorry as as line this your the I is the answer growth growth regarding of understand the and from

very bookings, user, as adjusted as major rate for we EBITDA, and active largely bottom a Free Fire, our and the well being a of major healthy is can its paying as in a And, think, to a Free attributable see which stage platform we Fire early we growing I from global and at was see the globally, still also and a increasingly game fact, user, as quarterly as life disclosure Regarding line at of a it it franchise. IP cycle. observe

of continuing the our the are user as as of growth as India And well from focusing based. that's to for grow on Southeast well We same world. LatAm, both, base. both The rest base comes as and Asia, user driver growth the the user paying the

where paying listen the of paying platform had even driving more, people social premium well So play in early ratio to early we're but only feedback we time but game, pay the been as as and also music, cohorts well well older also be in as the between longer. stage showing and user high pay as ratio. and hours per And out, and base user user in have at game, into enjoy this where on the observed more cohort, developing positive stickiness. to of hang to game, for game for days spent And per as the they with as tend modes, earlier comments we game the user mentioned, an it the in with a have other since there game the to to paying the And as stickiness recently, as we time as base be shown faster still that as three more of who growth socialize, on see growth trends play well us coming trends younger stronger gameplay, of there's loop daily active user. the cohort analysis not well, the core discussed two this play encouraging we very user also continue

our third inputs are with well communities, on on being building We party as IP. collaborations ecosystem to as also focused

for in a promote before, example, we successful Man to have game. One-Punch campaign As we was very engagement our which further with mentioned collaborated

very a we'll So And broad as I focus growing well user continue is a think to pace growth, on game this much globally. as based growth. of this

Operator

comes Please question from The from ahead. Goldman next Sachs. go Piyush Mubayi

Piyush Mubayi

and that be and Brazil. And drivers some the saw we the us e-commerce shed to drag you ecommerce it's Thank is related a in business, you us that in improvement I to place, was the take on rates for taking better able you in EBITDA us the hoping could are of stage be spend joining for the to the much understanding side in e-commerce investment understand the Thank also you could period? light would Yanjun, or is the at where on help whatever the give how feel this you. XQ tell for

Yanjun Wang

Thanks, Piysuh.

earlier, we And enhance As there. trends mentioned reception growing continue Brazil and we'll base our early to and still in locally to seen we've there. we'll the our investments to offerings on continue for user At very observe user is positive stage invest this sellers us. continuously efficiently focus and to

Piyush Mubayi

EBITDA e-commerce on region investments day-to-day far is Could with the on because concerned? overall a you this in light drag shed some of as outside as

Yanjun Wang

still very stage. it's Again, early

from early I of talk the perspective is in think I separately. margin it's market still the e-commerce positive. think Overall, the too contribution terms the seeing to very about we're still

per terms fall still all of line EBITDA Our strong and which loss continued is fronts. very top at in bullish order XXX% on to

very still us supermarket. think even early the that for in stage to discuss it for I Brazil So

Operator

The Alicia from Please ahead. next from comes question Citigroup. go Yap

Alicia Yap

market India? a or plans Thank yield is from And ambitions, will eager? in be second food can good Free is given then share nurse and if the so Thanks increasing the color Fire delivery see quick you management for two you game you my impact on more India, the if seeing the questions. lockdown, some wanted it complimentary of need win attractions negative in challenge do to Hi, solid the and management. conditions performance just the time I the given you. are business, the there, because bases your are the questions. instability, actually have to or spend that wondering one, the results. actually on any can Congratulations you that Number taking question evening share

Yanjun Wang

Alicia. you, Thank

and spent continue a Regarding on a be rising and see continue earnings user it grossing situation. we contribute ratio runway shortly, to there. has see India will very paying highly Shopee. where and a India. delivery, also terms we user and with very promising high. as see market, game are India, as a long being our We meaningfully mentioned, And category, to the in We of local as our observed growth in game performed per very market it promoting we to time top continue to user engagement Hopefully, in a will food focus be

a And user so Shopee, as it more acceptance we e-commerce become our and to what growth we healthy able market strong to we we growth naturally, by see in strong overall as a of very but see other see and engagements like focus user similar ecosystem. and were grow to complimentary it as the other we that, as of part on on food, We're how and to business e-commerce happened leader we a offerings naturally. sustainable these categories model Vietnam. through do And execution mentioned before, see happy for as

Operator

Next question ahead. go JPMorgan. comes Please Sharma from Ranjan from

Ranjan Sharma

questions Two JPMorgan. Hi, my side. presentation. the you for Sharma Thank from it's from Ranjan

as LatAm are Shopee And Thank in Mexico, we Indonesia. How seen Shopee you Vietnam, you you throughout the success delivery, in opportunity expanding see of show had could Firstly, you how for America and think Latin if adoption on you in on Brazil, had e-commerce? have you about secondly, should an driving food you. food rest also Asia?

Yanjun Wang

that development, thing any update very, again, very food. market. We we the Brazil much will of then same this our for others. point, for to not stage even is update LatAm market, us, The In early don't at mention the terms have

other any we and has there's the update there. plans out food very any market not been note. Vietnam doing get been also markets in Jakarta in first in But have will we other have And If recently expanding in gradually market We to you and now rolled other any leader over markets. a announced time. Indonesia,

Operator

comes John next The from ahead. Cowen. question Blackledge go Please from

John Blackledge

Great, thanks. Two questions.

on core just update Southeast positioning you to on Asia? give been some has just then ask Sales the you. asked in expected. greater marketing of was I'm an kind the and higher further us provide and you Shopee's And markets just in sales competitive going the spend spend? and marketing a again. expansion marketing could First as sales Thank spend, and of color key was Could driver Brazil and than

Yanjun Wang

Thank you.

In improving Asia, of to as for continue evidenced take plus increasing us our Southeast terms the market leadership growth, at Taiwan, in as and top our more very high to And over we all of fronts. across and monetization. our also than a line improve landscape, XXX% time, extend rate continued rate GMV markets order by our in competitive

In terms of and probably think way a marketing I consensus. line growth sales the spends, top exceeded in our also

So dropped of just marketing says GMV actually quarter-on-quarter. percentage

So the observe trends. I continue think we'll to

of many our digit low. in the Now, as growth quarter look top growth it's is that outcome as the results triple we've managed And penetration whereby level really of And we shown a very the note and growth. shown This very digital of cap scale is the we internet a that, this actually is high companies are growth all size investment our to important that us prudent we have. company for XXth at is as in and a opportunities sustained speed growth a company And and have that the economy very not a line. spending, as regions, through long-term and efficient of managed, large still other might of be high this development business model, carefully a

growing, zero faster So also continue landscape our believe, is as is at way red a not game ocean, while see market extending we a sum other than kind many we very situation. are high. The bigger we, rate we leadership Instead, we're players. the of to long competition actually

bodes for our road So us which believe model, the and the long-term very opportunities well, that in in the and we can business invest those maximize we actually run. while profitability long want to to continue down shareholders

Operator

Josh The next comes Please go from Autonomous Levin from ahead. question Research.

Josh Levin

good I afternoon. questions. have two Hi,

you. about all, the disadvantage not do mix thinking think as any a logistics? And you Gojek are in future, e-com what Thank second, you to XP First in-house ride then merging business? versus you the for implications of the hailing And how the see having business, are your Tokopedia business? about of of and

Yanjun Wang

of investing them, been our we in third deeply with approach logistics, and them integrated quality terms services our also primarily been us, help efficiency to users. consistent, And work party more services focused region. providers on with In of logistics further, where with we our growth quite we've has and improve to their in

see time in lowered to foods costs continue we over and delivery efficiency time. being shortened, As

Our served, sometimes markets. to constraints to to of complementary have have our will third users are own when in be during are services especially the there the express lockdown, could the party the logistics well party continue we during first sure delivery in capabilities or capacity. course, seasons make services peak And

and on of merger, like terms as of There's a our successful the the a mentioned, region. we the growing all should digital users huge now first, region In the congratulate friends we'd and runway, in think I've it's that, expanding and merger. focus and And communities economy, our we the their invest better. pie to our long in collectively to the long very opportunity on run implications serve

terms see fixed particular In that. of we of We really don't business, the having not disadvantage any, that. any

build business, across opportunity And are in growth three and to opportunities high in businesses, our recapitalize fund think and ecosystems. have largest very the and We that best gaming largest continue growth as we'll ecosystem both especially on helped actually digital regions so three in profitable we we the the -- those focus the also aim opportunities of executing position to to this And consumer stand different in financial high, to manage fund services. to building markets. region. core consumer well as on So internet the able e-commerce the internet to our best with and complex the it are we engines, many we fortunate in to are

Operator

next from ahead. Choudhary question The HSBC. from go comes Please Piyush

Piyush Choudhary

Good results. for and solid questions. evening. congratulations Thanks Two lot, a

about, you Fire, Firstly, has buy Thank opportunity user you lending your for Free digital wallet, the merchant see your expand? where How expansion? beyond regional your can been outlook to spent services the you. consumer and can know, lending talk lending and user on further potentially strategy, Secondly, time products? now, and pay to you merchant response you later share could on for financial per where thoughts expand do and base

Yanjun Wang

Yes.

the continue a to Southeast as, markets, penetration in user course, time and world. expand we and there well as of think the well see and And deepening different through we spent to LatAm, pays trend to further rate. the has Asia, offline definitely IT engagement, as users mode we of rate platform. grow opportunity more penetration is time you know, the fact, rest our over as user opportunities out so activities, see there to community online been are historically. on in the all game in roll base, continue base India of And and engage still with user engagement consistent across out think as different as our I and We --

top hours We can users, some of on, and have time of top time small for the who of focused a we are spent spent platform, broad-based as day course, multiple spent more group the spend seen by time of user a opposed on a users. to

community larger about we're talking XXX Of over daily you million course, a active with, much user, time. know,

an modes different promote community So, continue and and of provide of for different a opportunities massive-based online to ways trial our characters, socializing platform them focus is or engagement, trial to games, having different avatars, with content and playing. online

For something game of launching, mode, a mystery-solving the that with example, a own know, you pets more like in game. players are we Us Among recently

focus bring as base, engagement to time the to So what more them. growing in we'll and that's user continue on we well per user content in innovate spent as the to game. And

to user [indiscernible] understand listed out roll see our services And the as in program, well it users. our on, efficiency, might we as and SeaMoney of integral user model of we across to terms a behavior In Shopee markets, part our management you user better, high-quality know, improve lending, larger as continue and an we program we'll of but to -- focus base, continue more experience, that more as the across gradually our respect.

better technology further communities, models top in the and delivery e-commerce better institutions using services. services to pie technology this Again, are underserved the such tech continue together of other focus you collaborating financial on intra and focused with to on a time, usage, think provide as facilitate well have digital our us at is of to we services build services, which that growth program financial -- wallet collectively. management growing facilitates of I can and same other as on, as platform, we to wealth we'll know, financial allow power

Operator

Suisse. from go Please ahead. Varun from next Credit Ahuja question The comes

Varun Ahuja

for evening, good hi, thanks questions. management, Three Yes, opportunity. and the

First, seasonally and not countries I orders it's the a And doing so you coming of XQ in it's quarter, terms obviously, of number growth it's which out given this give But colors is you've GMV, think which a the on weaker e-commerce by well? in X% strong side, relatively given Indonesia. some just Can supposed strong growth. segments XQ. again a quarter-on-quarter of

that can will give color be If front, you helpful. that some on

a is plan, party, Fire services developed trending on On side, much that And it And platform anything you. the you can game how Thank you of more is gaming anything side, Free helpful. third launches, provide of color are e-commerce, can MAX? will any your how the you if digital about MAX, have billion -- versus Fire breakup? color much Free helpful? Thirdly, the market? on be related this bit share be little any in you launched financial TPV the any launched any $X.X how That if would to color the

Yanjun Wang

Thank you, Varun.

across the yes, terms charged experience hyper business, growth markets In continued all it e-commerce categories. to and of

actually continue accelerated. our our see composition all major So, much. And categories. rate further In really market category mentioned shifted for And growth Indonesia, that growth year-on-year we we the hasn't markets. different across same -- to

MAX, highest We've to And In Fire the our market fact, continue work seen this terms terms game dispersion. growth of is behavior. and -- in in been understanding times. controlled and preference the in we the to in on we've user on know, environment, you of testing select in improve Free recent the, rate that it year-on-year

with goal game. have I different experience offerings, users think to different our our for integrated is preferences seamless user and have on and

game know, these game new of world. and think well-known we And it I in then communities is a IP also, High of most think hear you you the previously launched, services. examples to as also in to And of Moonlight are I Blade, our, pipeline. survival the well we X, offer fresh in -- in IP, announced world TPV, our which a have -- still as to again, our [indiscernible], terms a content as first. is our earnings. know that, of would we MMORPG We game parts know, from believe don't self-owned of community in we in game. And -- potential some we it more directly those you will But game practice, do terms game, which like based of from mentioned of our the while lot Asia, in preannounce open Shopee, really In on have a our related the pipeline the

As of particular, on the I which of SeaMoney ecosystem grow growing the believe to highest services be to our before, and most mentioned and quality own which, of be our own cases comprehensive the on high-quality understanding online is efficient it. business, and growing of to e-wallet in happened that build top the business able of us the to top use user efficiently some to way wallet also through use wee or, case, we financial largest allow have additional analysis

will our this continue strategy. So, to be

Operator

go comes question ahead. Pang Goldman next Sachs. Please from Vitt Our from instructions] [Operator

Pang Vittayaamnuaykoon

Thank for very the opportunity. Hi. much you

questions from two me. Just

quarter-on-quarter, seen think and expect what support to its I Firstly, this COVID COVID expand if worsening decline understand Thailand, we've last prepared and program related the is and you. you worsen, is as master also impact? should year? situation to margin the in world, we Thank seller base? How situation around Free route second Singapore of on seen continues a from do continues Garena, time question can And Fire why that at in in India. to We've

Yanjun Wang

Pang. you, Thank

fluctuate remain high time-to-time, we mentioned industry the average. to that believe a but margin, of terms In might at the compared before EBITDA rate we our from EBITDA margin

IP quarter, need more to with promoting related to party collaboration contribute owner, is user users, but overall we payouts, and paying as very our we have a the and in promoting this further to might also IP we games One-Punch the as broader base, I well. engagement to the Man, such and in make helpful So in first as additional mentioned, think it our to

pay and user user we and the growing So continue focus on base base, will user to engagements.

self have proven in whether broadly incorporated developed or ability party markets. being We to across many our third IT it commercialize any, is our

India region, of In also. COVID right some form of in or terms restart our of restriction that Thailand, impact, lockdown Vietnam, and of seen Singapore, of as Taiwan, course have cases we such you're movements resurgence social of

cases see continue we large of of very Malaysia, and other large like for cases. number to number Philippines, see countries also We Indonesia,

to in will well to the hit, well services situation and deliver adaptability to resilience, and to of believe much So able and continue strictest service we be shown we to the communities all levels, last our to we COVID services manage I and the we're quality. form think have I lockdown early demands those with handle specs and still first needed with team in think this, are very the since so when that, pandemic prepared, year fulfill

continue will numbers. that in stay believe I here cases, the think to surges well and any we vigilant. of and is up in our to step has new prepared in been we digitalization for COVID evidenced are also be results Any

we further Of will online movements lockdown communities, our course, greater be are and need broader are deliver to reach even to and ready there if for that. there think we restrictions services of

Operator

next from a follow ahead. Sharma from Our question up is JPMorgan. Ranjan Please go

Ranjan Sharma

Yes, have you. followup to vast I and on quick a Fire popularity the thank in a Free just seems U.S., U.S. can in be improvement which Hi, the

share any year? feel you and it Thank If means you. this driving color do this engagement guidance this can you is, giving about what's where how for

Yanjun Wang

Yeah.

continue Free a a sign, there. think of reception direct markets Fire highly to serve to see in encouraging users we America, and it's growth we'll in North and the continue We and positive

not game with with necessarily game Royale lot elements I level user our communities appeal forms its itself of and hit age, to and but across gender, mode engagement action and not broad-based audience and action-focused of experience social fantasy friendliness various general. with appeal own -- in broad-based think Battle own game in are or a games differentiates has game to elements, are think Royale its broad-based, to terms top all there appeal of I And same. Battle know, you the audience. the Each

the the continue to in find this types know, the promoting other, right see as think game and our we on they in focus well organic well. and reaching our we'll growth us, them way in, strong game audiences, serving -- and direct to different one And game will, with I or helps markets we'll communities. communities you of

continue the observe we of terms And, course, of to see guidance, In at results update we'll quarter. gaming guidance, you know, we'll the let people very We'll observe. this know. to But point, to this continue need we strong trends.

Operator

the This to Ju I remarks. over closing concludes our Song question-and-answer back would conference for Min turn any to session. like

Min Ju Song

forward you. today's you for of speaking again look all joining call. you next Thank quarter. We to Thank to all

Operator

The today's has presentation. now concluded. Thank attending for you conference

You may now disconnect.

Sea Limited (SE) 18 May 212021 Q1 Earnings call transcript