SINGAPORE (BLOOMBERG) – Shopee owner Sea posted a bigger second-quarter loss than expected and withdrew its 2022 e-commerce forecast, joining other online giants struggling to gauge an increa-singly uncertain global economic outlook.
The Singapore-based company on Tuesday posted an adjusted loss before interest, taxes, depreciation and amortisation of USD506.3 million in three months to end-June, surpassing the average projection for USD482.3 million.
Sea’s net loss more than doubled to USD931.2 million in the June quarter, from USD433.7 million in the year-ago period, amid higher overhead costs and allowances for credit losses.
Sea shares tumbled 14 per cent on Tuesday to close at USD77.43 in New York.
The downbeat result came after Sea cut its full-year e-commerce revenue outlook in May, to a low of USD8.5 billion versus USD8.9 billion previously. Shoppers emerging from pandemic lockdowns are cutting back on online purchases, shifting towards essentials during a potential recession.
Sea, which counts Tencent Holdings as its biggest investor, has suffered a run of setbacks this year, including a sudden ban of its most popular mobile game in India and the subsequent closure of its e-commerce operations there. Its shares have fallen about 75 per cent since peaking in October.
The company has been trying to boost profitability as topline growth plateaus. Second-quarter sales rose 29 per cent to USD2.9 billion, the slowest growth in almost five years.