The stock price soared by 378% in one year to US$251. The company’s “low-profile version” of the chicken-eating game is no longer under-matched.

Recently, various listed companies have begun to release financial reports, and an overseas company has received high attention in China. This company is Sea Limited, known as the “Small Tencent in Southeast Asia”.

Sea has three major businesses: gaming, e-commerce and digital finance. The financial report shows that in the fourth quarter of 2020, the gaming brand Garena’s Booking revenue was US$1 billion, an increase of 111.1% year-on-year, GAAP revenue was US$693.4 million, a year-on-year increase of 71.6%, and adjusted EBITDA was US$663.5 million, a year-on-year increase of nearly 150% ( 149.1%).

In terms of annual performance, Garena booking revenue was US$3.2 billion, an increase of 80.3% compared to the previous year, GAAP revenue was US$2 billion, a year-on-year increase of 77.5%, and adjusted EBITDA was US$2 billion, a year-on-year increase of 94%.

The surge in Garena’s performance is mainly due to the anti-sky performance of its chicken-eating game “Free Fire”. The financial report quoted App Annie data showing that the game won the global mobile game download list for two consecutive years, became the mobile game with the highest revenue in South America and Southeast Asia for six consecutive quarters, and the highest revenue in India in the fourth quarter and 2020. Mobile games.

One of the reasons for its outstanding performance in India is that the popular “PUBG MOBILE” was banned, and “Free Fire” became one of the “alternatives.” Although from the point of view of the number of users, the loss of “PUBG MOBILE” is not insignificant to Tencent, but the gain of “Free Fire”, Tencent, as one of the shareholders of SEA, can still get a share of the pie.

What’s more commendable is that this game’s “low-profile version” of the chicken-eating game cut into the Southeast Asian and Latin American markets has become the leading product in the US market. According to App Annie data, on March 4, 2021, “Free Fire” ranked 10th on the iOS game best-selling list in the United States, alongside “PUBG MOBILE”, which ranked seventh.

App Annie: 2021.3.4 Best-selling iPhone Games

Driven by “Free Fire”, Garena’s number of active users in the fourth quarter of 2020 exceeded 600 million, an increase of 72.1% over the same period last year, and the number of paying users reached 73.1 million, an increase of nearly 120% year-on-year.

In addition to performance, what is also amazing is the performance of SEA’s stock price. In the past year, the company’s stock price rose from 52.52 to 251.28 US dollars, an increase of 378%.

SEA stock price chart: 2020.3.4~2021.3.3

Looking forward to 2021, the company predicts that this year’s Garena Booking revenue will be between US$4.3 billion and US$4.5 billion. If calculated at the median value, the increase will be 38.1%.

Source: Game Top


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