Sea Limited’s net income for the second quarter jumped to $414 million, more than five times the $79.9 million reported a year ago, driven by strong performances across its e-commerce, digital finance, and gaming units, the company reported on Tuesday.
Total revenue hit $5.3 billion, up 38% year on year, while adjusted EBITDA nearly doubled to $829 million.
“The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year,” said Forrest Li, Sea Ltd Chairman and Chief Executive Officer.
With the strong increase in net income, Li said Sea Ltd is now shifting back to growth mode after several years of prioritising profitability through cost-cutting measures.
“Given the high potential of our markets and the stage we are at in our business now, we will continue to prioritise growth, which will pave the way for us to maximise our long-term profitability. At the same time, our company has reached a stage where we can pursue growth opportunities while improving profitability,” Li said.
E-commerce remained Sea Ltd’s largest business in terms of revenue, clocking a 33.7% growth from its year-ago level to hit $3.8 billion during the quarter.
Gross merchandise value grew 28.2% year on year to hit $29.8 billion for the quarter, with the CEO saying they expect this growth momentum to carry into the third quarter of the year. Adjusted EBITDA for Shopee hit $227.7 million, a reversal of the $9.2-million adjusted EBITDA loss for the second quarter of 2024.
Sea Ltd’s fintech business, meanwhile, grew fastest in terms of revenue for the months April to June this year, reporting a 70% growth in total revenue at $882.8 million.
The firm attributed the revenue growth primarily to its consumer and SME credit business. As of end-June, the principal outstanding on consumer and SME loans reached $6.9 billion, almost double that of its year-ago level. Adjusted EBITDA for Monee was up 55% from its year-ago level to $255.3 million.
“It is exciting that our credit business is still in the early stages in many of our markets, reinforcing our strong conviction in Monee’s long-term growth and earnings potential,” Li said.
Garena’s flagship game Free Fire also pushed Sea Ltd’s gaming division to record a 28.4% growth in revenue to $559.1 million during the quarter, with quarterly paying users hitting 61.8 million, up 17.8% year on year.
“We believe Free Fire has established itself as an evergreen franchise, both sustaining its user engagement and growing its appeal in more markets globally. We are also committed to trying out new genres and new markets, and testing the boundaries of future game experiences by embracing AI,” Li said.
