Q3 2020 Sea Ltd Earnings Call
Good morning.
True.
And then third quarter 2020 results conference call all participants will be in listen only mode share just systems placed conference specialist by pressing the star cash followed by zero after.
After todays call.
And well be an opportunity to ask questions. Please note. This event is being recorded I would now like to turn the conference over to Mr. me. So Oh. Please go ahead.
Well they get paid a cash.
Me and good morning, everyone and welcome to see what he claims third quarter earnings Conference call. I mean, you saw gross eastgroup Chief Corporate officer.
Before we continue I would like to remind you that we may make forward looking statements would try and courtesy subject to risks and uncertainties and may not be low light and the teacher for various uses as stated in our press and.
Also this call includes discussion over and non-GAAP financial measures such as adjusted EBITDA and net loss, excluding share based compensation and changes in fair value of the 2017 convertible notes.
We believe these measures having half price that's your understanding of the actual cash flow of our major businesses when used as a complement to our GAAP and soldier.
For a discussion of the use of non-GAAP financial measures and reconciliation with the closest GAAP measure. Please refer to the section on non-GAAP financial measures in our press and I.
Here with me he is chairman and chief.
Chief Executive Officer fourth Li gross Chief Financial Officer, Tony Hall, and Chief Corporate Officer younger and my.
Oh, gosh, well share strategy and business updates operating highlights and financial performance for the for this will be followed by a 20 associate and which we welcome and especially as you have.
With that let me turn the call over to force.
Hello, everyone and thank you and I always for joining todays call. We are very happy to report and another quarter of strong performance across our business.
We continue to see the user growth and.
And the user and the basement and each on our platform.
During the quarter.
We believe and original sheet with each one I'd say in our global market, you said that the new trial and.
The market leader Force segment, we are well positioned to capture the gross opportunity presented by new stuff Federation.
Our GAAP financial and operational results for the quarter once again underlying our ability to execute well and the sea Lucky fortune they share off the faster growing markets.
And the level already GAAP revenue grew 99% year on year to reach $1.2 billion gross.
Gross profit gross 101% year on year to reach a run rate and a $7.6 million.
We also reported very strong bottom line results, we adjusted EBITDA, reaching 120.4 million dollar.
Before that demonstrate the strength and efficiency of our business model, we will continue to drive record girl with efficiency and whether it be extend our market leadership.
In line with our strong results, we are raising our guidance for both digital entertainment and E Commerce orders, we're off to solve and funky.
You didn't kill entertainment and we believe our burst on performance in the quarter, well 10 through the fourth quarter.
As a result, we now expect bookings for diesel Entertainment Suite C 3.1 billion dollar representing over 75 per doesn't grow from to stop and Nike.
This would be wife and guidance represents a free off more than 50, my first and from the mid point of the previously disclosed and guidance.
We also expect GAAP revenue product sales, that's a nice oh, well E Commerce, Tony Sea two points briefing and daughter.
There'll be wife and guidance represents a more than one weaponry and 44% increase from 2019.
And the more than 31% increase from the mid point of the previously gross the guidance.
This revision reflects both the GAAP historical performance, we have achieved so far this year and our continuous policy all new moving into the fourth quarter.
Let me start with the diesel entertainment.
The third quarter with another standout quarter arena with GAAP format across all our key metrics.
Okay well.
Nike $944.7 million or what.
Moving on to temper down year on year.
Adjusted EBITDA was 584.5 million dollar and.
Great and 20% year on year, representing 52% okay.
This strong performance was driven by robust active and the paying user girls.
Pretty active users reached 572.4 million.
Are you crazy and 78% year on year.
Pretty paying users reached 65.3 million.
Well have to wait on a 24% year on year and new represented over 11% already active user.
We are particularly encouraged by the strong active and the paying user gross for the quarter. This.
This reflects our ability to continually deliver high quality content not to try and engage you wonder.
Rebar and certainly strong performance.
According to App Annie It continues to be the highest importantly, mobile games in Latin America, and southeast Asia in the third quarter.
A key factor in free for our continued success is our ability to consistently deliver high quality content tailored for to taste and preferences of our huge global user base.
In recent months it free far partner with celebrities such as the boot and actor and the global RK, So Craig Lampo character and other new game content inspired by these celebrity.
For example in September we released a play about character of what do you star cost and lead actor in the high supporting India's steel if we saw the Nike.
We have also worked with the pulp and our global market and to create another saw you could see people refer we see some slight insight and day.
We didn't talk and stop being lost the song will create more than 25 million hi across Wang with online platform.
We didn't produce the more social and the community feature into the game.
For example, the new between gross feature and highly popular with our user this.
This is an area, we think the day, where player and me and how socially.
So far about why and for our player that's fine and Thier every day on average these.
These and other social feature for their dressings, and that's working fast and taking it off the gate.
And they know our sports community continues to strike.
Free far tournament held during the quarter have accumulated over 115 million online view today.
The other day, we hosted a national tournament for Brazil funny to method.
This tournament has reported over 47 million all I'm used to day.
We're also extending the reach of our reported even beyond our strong online audience free.
For example, the gross finalist for a brief bargains and Michelle MA for 2000 Twentys wall.
For copies on National TV, reaching even broader fun day online and offline.
Our highly local and the interactive content and community activity increase ability our user with free bar.
This effort also ensure that the game day fresh and relevant for our user overtime.
This in turn gross our user base and improve engagement.
As we move into the fourth quarter, and then look to 2020 and while we will continue to focus on providing the global free for our community. We have two beach and content and a fresh and and Beijing erupted hope will be the game and through our social and a community feature.
We are a company that is that your recent very long runway ahead for these French high.
Turning to E commerce.
Chuck you had another great quarter you.
Moving on our momentum and the leadership, we continue to capture more share our regions rapidly funding E Commerce segment.
Also continues to deliver more value to our centers and the buyer well keep and new monetization and the driving new patient growth.
Shop, you reported 741.6 minutes cross border up 131% year on year and the G. M. B up 9.3 billion dollar and increase our weaponry and 3% year on year.
GAAP revenue reported third quarter was $618.7 million operating.
173% year on year.
We also continue to drive efficiencies across the business, we saw adjusted EBITDA loss per order decreasing by 48% year on year to 41 cents during the quarter.
In the third quarter shopping continues to rank as the number one and the shopping and kind of re across southeast Asia and its high Wow I don't know average monthly active user and the total time spent oh and enjoy based on any.
On a global level shelf. He was also the second the most downloaded app in the shopping and kind of rate according to App and.
Yeah, and Mark to market, Indonesia shopping continues to whether its done and market leadership.
And registered over 300, and the 10 million and water and the daily average offer Rals 3.4 million orders I.
And increased over 100, and a 24% year on year.
It was also a record first Indonesia average monthly active users download and the total time spent and ongoing into.
In the shop, and kind of rate and a third quarter. According to EPS any.
And E commerce gross important across the region.
We're focused on delivering more value for our merchants across the shock ecosystem.
For example, in addition to the GAAP EPS, you've announced that left the quarter Shockey launched a new per teaching partnership with five leading global media agency.
This program is designed to be quick these agencies, we index ecommerce knowledge too and the skill so big I helped more bread and the retail merchant skill and it's the sea of Shockey.
Further we help merchants crazy that's her shockey theorists they took in today's consumer.
Sure Eli is one example.
Net or [laughter] fall this feature headquarters and driving user engagement and the retention with measurable result.
Shockey life reported over 48 million hours watched in the third quarter.
Our momentum has carried forward into a record breaking double 11 E still shop and buy the table.
We weren't park and to see our SMB that are recording and incredibly successful what's still even through the shockey platform.
In particular, the new orders that are who joins the double 11, each sales for the fourth time, so tough times and colder than average day.
We have built power for both up and Finicky. We are you there and it's a day shop. He is one of the most and ready for the night and the best and losses right across our community.
You call recently published 2020 global best the Brent Wrenching shop, you, what the number eight run right globally and that together with Amazon represents the two ecommerce right in the war top 10 ranking.
As we continue to solidify and extend our market leadership and E Commerce.
We'll stay focused on providing the best and long term value per hour user and if you win a healthy and sustainable ecosystem for our region.
Moving out to sea money.
We saw the same strong growth momentum and there are of course arena and the shockey during the quarter.
Our mobile wallets total payments and water per quarter exceeded 2.1 billion dollar, which quantity and paying user so popping 17.8 million.
The money continues to deepen the integration with chunky and.
Leveraging shopkeep record gross and extended reach to scale efficiently and effectively.
Yes October more than 30% of shop is total gross odor of course, our marquee combined what pay using our mobile wallet.
We've also continued to expand our suite of online and offline third party use cases and the partnerships in the third quarter. This.
This past quarter is free do you see and the Brent and sub sea money across our communities.
We see significant opportunity ahead of sea money and the belief that would be kind of captured in a highly efficient manner by building on our core use cases.
Our focus remains on scaling the business to enable more consumer and the merchant to benefit from the east and the convenience of our digital solution.
In closing the strong momentum from the first half of the year has carried on into the third quarter and and beyond.
Our third quarter performance, it's a testament to our ability to quickly adapt to the rapidly evolving needs and preferences of our community.
Well, we are benefiting from secular tailwind and the direction push towards each store like nation.
We remain very focused on strong execution to capture the growth opportunity.
From a highly local and deeply engaging content and greener, okay. So shocking new brushy well.
And we'll continue to listen to and in no way a wrong our user.
As we move towards the end of 2020 and into 2021 well.
Well, whether extending and solidifying our market leadership position across all the key segment of the sea total economy in our region.
Our conviction in the skill of the alternative had for sea over the long term, it's growing even stronger.
We remain committed to serving our communities with technology and enabling them to benefit from the gross up that you just hope economy in the long run.
With that I would you mind, Tony to discuss our financials.
Thank you for it and thanks to everyone for joining the call. We have included detailed financial schedules together with the corresponding match my analysis and today's press release as far as has discussed some of our financial highlights. So I'll focus my comments on the other relevant metrics.
For sea overall total GAAP revenue grew by 9% year on year to $1.2 billion, which was mainly driven by continued monetization efforts and our E commerce business and the past quarters as well as gross of our Detroit and the tenant business, especially our self developed games free facts.
The 110% year on year growth and digital entertainment bookings to $944.7 million and 73% year out your gross and GAAP revenue to $569 million were primarily driven by the increase of our active user base and deep and paying and.
Their penetration and in particular, the continued success of our self developed games pretty fast.
Digital entertainment adjusted EBITDA was $584.5 million and increase of 120% year on year. Many due to a strong top line growth and our self developed games accounting for and increased share of bookings.
Our E Commerce GAAP revenue of $618.7 million included GAAP marketplace revenue of $467.1 million up 164% year on year, and GAAP crude out revenue of $151.6 million up 200.
And 8% year on year.
Strong results demonstrated the deepening penetration of E commerce, and our ability to capture this accelerated growth opportunities created by the rapid expansion of the digital economy.
Ecommerce adjusted EBITDA loss was $301.6 million as we continued our investment to fully capture the market opportunity and the region. We will continue to invest prudently and drive high quality and growth with increasing efficiency.
Digital financial services, GAAP revenue was $14.4 million and increase of 766% year on year from $1.7 million and the third quarter of 2019 and.
Adjusted EBITDA loss was $149.3 million and the third quarter of 2020 compared to a loss of $33.6 million and the same period of 2000 and lighting.
This was primarily due to our continued efforts to drive mobile wallet gross in our markets and expand the suite of online and offline third party use cases and partnerships.
Returning to our consolidated numbers, we recognized and net non operating loss of $74.3 million and the third quarter of 2020 compared to a net non operating income of $9.8 million and the third quarter of 2000 and Nike and.
Non operating loss in the third quarter and for that and 20 was partly due to the higher interest expense and foreign exchange loss.
We had a net income tax expense of $46.4 million and the third quarter of 2020, which was primarily due to withholding tax and corporate income tax recognized in our digital entertainment business.
As a result net loss excluding share based compensation and changes in fair value of those without and and 17 convertible notes was $346 million and the third quarter of 2020 as compared to $175.2 million for the same period in 2000 and knighted.
With that let me try and the calls me and Jay.
Thank you and not ready to open the call for questions operator.
Okay.
Well now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone, if you use and a speakerphone. Please pick up your handset and suppressing the cash to try and question Press Star then too and the interest of.
Time will take a maximum of two questions at a time from each caller. If you wish to ask questions. Please request to join the queue again. After your first questions have been answered at this time, we will pass and momentarily to assemble our roster.
Our first question is from young one CLO from Goldman Sachs go ahead.
Thank you for that and for CECO. Congratulations on another strong set of numbers my two questions.
Question. So firstly, we see for the gaming side to Peter you show a increased significantly sequentially. So just wondering is it due to the sports events you launch other social features youve added in the quarter.
And along that line, what do you see as the uniqueness welfare pay ratio in coming quarters.
And the second question is that and Kelly, let's discuss a little bit about the fourth quarter eating trends, so far, especially given the new games and launch in the last few months like fantasy town off at retail and.
Asking this because income for the full year gross didn't guide and it appears that suggest perhaps a bit of a decline quarter to quarter four across the four.
Gross billings and.
Okay. Thank you.
Thank you yeah.
So in terms of Ah, Hey, Michelle and we see a day healthy TV show for this quarter and we'll continue to work on engaging with Alan.
Globally, and he funny, a pace and they show over time, although we went and say that it is a singular tick and.
Andy and although I think Oh police fire and our goal is to make it into a long Debbie.
I see and eight and major gaming platform and with and.
It's a very comprehensive and also the tiny social community a lot of focus is still to try and usable globally.
All market, and and saying, Hey, I want to increase our user engagement and such is a lot of net community and E sports events.
One thing I also want to highlight that during the quarter and also happened to me to step and and mystery of our free fire and chat and Dan well, we had a special events and content and.
Which has done very well, we see a site Alan community and that also helped him with a payout ratio.
Michelle So if you look at our fourth quarter, we stated that.
And that is Oh boy a gain booking sea.
<unk> point 1 billion.
Actually I want to highlight that SAP and we met for the fourth quarter, two and sustaining a strong performance and the third.
Quarter, Oh, and so what I did an outstanding quarter with 100, and close to 110 per cent, yeah, and nickel and yet despite.
Despite that suite that well wanted to continue the national trend away from one day and night per se young and well human and just hit that we find 1 billion, but we hope to beat that.
Although we want to remain competitive.
And therefore, we see on the sea side and we'll continue to see very strong performance.
And and next year.
In terms of our new games 70 tell me the army simulation casual game I'm also incorporate and lot of the local content. For example, you can you share.
Well locals and why and cactus into the game and to a beauty and cater to our local community and preferences.
Fairy tale is a 10 day RPG game and a need that our efforts to expand our shorter and a diversified allegheny portfolio over time, so were not particularly focused and monetize nation per se for these games, but more on understanding.
Local community, they and their preferences and user behavior moving back to different types of things.
Our next question and some Thomas Chong from Jefferies Go ahead.
Thank you management, both taking my questions and congratulations on a strong set 12 themselves.
My question is about the E commerce and competitive.
And inscape, a treadmill and Clemens CFO and whether it be C and D intensifying competition and India, Indonesia.
He share market and on top of that four and two new also a comment about how we should bring on about all night given should we.
Yeah, typically in the southeast Asia market, whose corbett. Thank you.
Thank you Oh, I'm Kinda last day I think the.
And she is improved I saw and stuff shopping income constant as we continue to extend our market leadership and our kids, we caught and.
Well whatever gross was 130% yeah, Yeah, we'll just wait and attach Oh block and closely and also with the leases and the other and player and close rates and all markets and Oh.
And we said this for a while E commerce is that something I enjoy sea and very strong net worth is that and set aside and we'll use that as well so actually common stock market leader and we believe we will continue to well ER and ER given the current environment.
And then back will they be funny dislike station and accelerated adoption of E. Commerce, we believe that and golden opportunity for us to capture age proportionate share hoped and lock and girls and any case, we stay here said very long runway for all players and the market.
And then Ah, that's usually low penetration E Southeast Asia for E Commerce and at this stage, yet and we believe no longer than a feel and give us a demographic.
And also the geographic nature, Oh, a region, we see E commerce penetration should go much deeper and and hope to work with all players and the market to collectively extend its high but and see how we also hope to some extent and you don't share.
In terms of.
Oh, I'm going actually and we continue to see nice job and then FMCG, including will surely I'll soft launch and we believe that as people, especially in new leases during this call.
Yeah, Yeah, it's come onto the platform and experienced a convenient and scientists online as well as especially during the social assistance sea on share yet and I think this is something that Oh wants it so that people get into the new that happened and this is.
Right.
And we continue to see that Shopko sea this category.
Our next question is from BG was killed dray from HSBC. Please go ahead.
Yeah, Hi, Thanks, a lot and congratulations for a strong sort of reserves to Cushing and both on E. Commerce, Fortunately, what drove a quarter on quarter improvement and monetization and could you share what proportion of revenue comes from advertising income and and you have launched this program.
Five media agencies can you share and some initial success of dark.
And secondly on GI gross can you give us insight on how it's trading across your country.
Sure.
The monetization ultimately we are actually seeing a very strong and healthy gross.
Revenue.
Shop E Commerce platform and does not it's still.
Still largely attributable to increasing high margin heartfelt and revenue I need a transaction or they just sea food and commissions.
And Oh, Wow, and handling fees et cetera, and so.
Hi, Matt.
And also the increased revenues bomb, a then value added services, which mainly consist of cross border logistic as well as and Oh, sorry on upside contributed to the increase as well fund and.
The peak, French and Dutch and we continue to.
And then Oh, Oh high margin revenues.
Thanks, largely to increase and demand advertisements, our sellers as well as operating program, where sellers and voluntarily pay a higher commission.
He for joining set up programs that benefit there consumers and that he cool their own sales volume such as actually should be program and maucher and so oh, so promotion programs and you know feature seller and programs and I'll pass along.
A jury also during a shocking that and so.
So the I think it's a and their plastics friends and continue to walk with non sellers to eat who the adoption of these programs as well and advertisement and sell or sell the company continues to grow with that.
Our next question is from all.
And let me and check the the other two questions. So Oh, my God and the media agency partner and shit.
This is another Great example, where we help our sellers and especially grant sellers and Oh mall side to grow the business and soccer and so we have been and walking with parents and media agency.
Educate and advertisement on shop, and Soc, one Oh, we're and I used and behavior on how channel that attract and engage with our new says and so that they can help their clients and always tend to need Oh rent a center and this is also in line with the recent.
Right and.
Well, if I don't see a lot of Ah blast coming onto our platform. We now have more than 20000, Brent options off one and the numbers continue to increase spot, especially during this period, Oh wait and see the friends Uh Huh.
The increase in B and C distills dilution and something that's integral to their overall offering given does social distancing position.
And ER and himself G M equals across different market I think and we continue to see very strong gross and as the market defenses.
Yeah in terms of Ah Ah Cinemark, and generally were less affected by cold and others here, yeah, like Taiwan and did not lessen share before they're going straight touchy to be robust and in line with Oh, all or a general trend and they're also market that.
Uh huh and affected by and locked down more and that subsequently has lifted job losses, and locked and measure and sounds like a pilot and a week and and Singapore and we see initially very strong and decreasing and our.
Calmest, and mens and especially new used to flow and those users tend to stick with us and therefore, that's the fulfillment to single out or even though the Q on Q, well a win and be so and strong.
Strong and between Q1 to see too low.
And young here goals continue to be very strong and some market and.
We even saw you know five times and six times.
Defense and ER and other markets like Indonesia, the Philippines, and Malaysia and continues to see some resurgence of pieces and.
And sometimes the time and locked down the stretch and C pulse and different formats and and results I think we feel well continue to see heights, and TV and the Alt, a and B wells are soft warm as well. So I think it's still too early to talk about day post cold the situation.
But given the stock and measures have been adjusted the flooding pretty much all the market and during those periods of time and have a.
And there's a day strong flow of all so well and we continue to Li that's the steep and you have to try and station and stop shop, all much during this year and yet and sustainable.
Our next question is from John Blackledge from Cowen go ahead.
Oh, great. Thanks, a a couple of questions first on the digital entertainment could you discuss free fires monetization and markets outside of South East Asia, and Latin America, and then and choppy in the past you've called out the Taiwan is EBITDA flattish before corporate expenses.
Got it and part given significant market share advantage in your other markets. If you get to some more market share position is there anything structurally that would limit the margin profile and more broadly just any color on choppy sea EBITDA trajectory going forward would be helpful. Thank you.
Thank you HM Subodh monetization outside of Southeast Asia, We previously shared before that Oh and revenue contribution from market sales outside of Southeast Asia, Oh wait constitute the majority of our just show.
Tim and booking and one country and you see that strong trend.
Including and ER and.
Latin America market, which has a similar population site.
But in terms of GDP per capita is probably a bit higher than southeast Asia region. We think there is a very good potential interest continues its like ER and he says low and Taser and deepening engagement with our new says and drive Monetizations and online and again.
And we will where and looking at its a very long time sea and therefore, you know where I'm not trying to share heavy loss, although still at the gross stage, one and two to continue to flow and gains in.
In Latin America, as well as other markets in the world and.
And in terms of Ah and.
Good day.
Yeah. So.
No shopping platform, how much EBITDA margin and continue to like so it's not actually flattish and.
And so therefore, but we do believe that there and so we have no doubt that new commerce, especially a strong lots and neither can come in and very healthy margin and although we don't just separately to sell it and that's but it's it's not actually that flattish and.
And therefore, we do not believe sets it up and other markets and it's not anything that we see and looked up potentially limit us the Mike and that can be and she is a longer one button and very strong.
Our next question.
It's from Red John Thomas from JP Morgan go ahead.
[laughter].
Hi, good evening and thank you for the presentation and questions from my side.
Firstly on shop, you presume.
Can you can you share what is and started you for that market melt it seems to have evolved more than the cross border business.
Because we do see some looks and as the so if you could talk about your aspirations for Brazil.
From a solid Nicholas perspective.
The second question is on free part of Bugs and we have been seeing.
And I'm going off well open pit that's happening.
If you can share and what the feedback has been.
And then what your day are going to look like.
Success with a good and.
More developed markets. Thank you.
Thank you.
In terms of Ah shoppers, we share before was initiated a start and have my or cross border cheese, and and Air Force a primary cost for this trip and.
And and team continue to grow the business. We also saw a reduction by local sellers should which we certainly welcome that he comes up but police fire and Matt.
Okay say, we see it as an integral part of police fire and we tried to cater to Oh, the broadest range of cost too much and so that you can and a couple of users to choose to say the free fire and Oh version four Super Max a penny all day.
<unk> expenses and and their phone and fat and basically where we don't see and then a separate teams, but also as part of the free site experience and Ah I think the if you know we are focused on.
Making sure that user experience. It's funny news. Okay people are playing we fire actually my math and won't be all the sea Matt and.
So a lot of us see sales and to be worked out and we will continue to focus on improving all that and user experience or when it will see file up on matts question.
Our next question is from analysts Yep Yep from Citigroup go ahead.
Hi, Thank you good evening management and thanks for taking my questions are also congrats and the strong lease out.
I have some follow up questions on the E Commerce and income.
Income felt the monetization and model could you help us rang income felt the percentage of revenue contributions.
Non transaction fee, yes advertising and.
And also potentially you could help us rank API, the fastest growth girlfriend and get away for free this quarter and any meaningful difference between lets say the country and Indonesia versus the overall gross lateral and.
And then secondly, I trust and that will change up the product mix or seasonality this quarter because it seems like a L. V is so low that the low why I'm. So what what could be the reasons for that and if you could update us on the purchase frequency this quarter. Thank you.
Thank you.
In terms of the percentage of revenue and we don't specific credit side, So oh and suffice to say that shows the high margin revenues song and committed transactions and sees as low as advertising and the majority of all over the new and also.
The majority of the contribution to the value flow. The reason a lot and we know a trend that's what they see and advertising to gather and small market and that Oh, So [laughter], Oh Wow like not a lot and some are often program set up so savi and very.
Right and core and contributing to revenue growth and it actually relating to advertisement or featured shops and.
Great and then shop platform, and then movies and it's a under transactions. They see it because you know we and she help our sellers who might not be the and it's.
Sophisticated yet to sell individually manage their advertisement placement and calculate oh, wow advertisements and that shop and so that's how we actually facilitate Ah that's fine.
Okay, all right and Oh, Wow, two and also like to see shop, Yeah, Hi Sea and then they become a warm and we will manage the keywords such bidding does placement founder Bob.
Participation in that sector for them and part of the transaction, they see and a little bit pots, and say you know whether that advertisement and kinda Nash and they see and but I think the important thing and it's a high margin revenue that is the highest percentage and slightly odd and close that.
That is also part of leases and believe in the longer run and the profitability model all set and how much is and not to be worried and also in terms of the oh ill before it and Thomas a this quarter I think and we mentioned before that shot a low.
To mid double digits or low.
Low teens to mid teens range, it and it's something that probably close yet our market I think and actually and you see all that you know the country.
Punchy light the new show and and if things was like a population and Oh and and as well over time, Oh, but taking a market like Taiwan, most unifill generally with.
Smaller population.
Therefore, you know those markets with low a basket size and tend to account for one time watching movies and and those with a larger share a basket size, but smaller population.
And also and particularly during this period and we see very strong rules of thumb, though it's a market.
Yes, as we mentioned, a Indonesia, Philippines, and Malaysia, where they're more locked down measures being implemented on and off during and a whole here again, so yes, and young and growth is particularly focused on those markets and but I think overall, we'll continue to.
I watched the caught up and makes very closely I think though what we see is that.
All right and then on the T. Rowe, yet no particular category like home and Libby FMCG enjoy.
Good day strong flow well.
And now with the locked out the E. Most of all the Leach and all we continue to see fashion and start to recover and no pay somebody copyright and accelerating and remains a top priority right. So the overall category a category mix hasn't really changed and.
Gosh, and but Walt home and moving continue and FMCG Oh, the health and beauty continues to be very strong. We also start to see that probably call it low fashion.
Our next question is from John Choi from day, one go ahead.
Oh and good evening and thank you for taking my question I have two questions here. So first of all on your shopping business I think clearly we're seeing a very strong try and on the GMB and also the revenue. So I just want to understand like you know what are the part I already if and when it comes to investments to further propel the topline growth and that you know eventually.
Narrowed down you know or EBITDA, a 44, and I think I want to know the and investment priorities and where do you think you need to GAAP.
And work into and second is on free fire I know that we've done and very warm across the region and I think magic and sure. Some kinda like you kind of elaborate a bit more you know how we should think about the average bookings per user right now clearly it seems like we're still and early stage, but how much more.
<unk> upside do we see in terms of I mean on the ARPU and are we going to.
Launch any new type of monetization and.
Methodology and once again thank you.
Thank you.
So are you.
Oh Gosh, I think were very consistently all approach and Ah communication that we want to continue to flow Oh, new common stock one and I think its strength and our market leadership things have focus on efficiency of gross and deepening and monetization.
And and they are right hateful our market.
And therefore, all our focus is Ah you know I've never changed in that and we got a of course and the business model that eventually you know naturally breakeven will calm and and actually a healthy margin. So he can be reached a and it's a scale business.
And is that it is also a.
Business was very strong net worth and fast and therefore, we believe it's very important and to continue to drive gross especially your carrier, where we continue to see very rapid adoption of ecommerce and keeping the and digitalization and all regions.
Actually exercises and size of gold and time to to class flow and and do we want to make sure.
The ecommerce penetration fans and go flood and.
Alan region.
And also in terms of Ah and digital entertainment and.
Okay and.
So overall I think we have and very healthy and strong number chief to fall on a self bought it at a 1.7 dollars and how to use it and that's it.
That that is Ah you know a day, so active user base of more than 570 million and for the quarter and so I think that Oh game, we believe that given the global market.
Accessing and up and it's really a there are also a potential to continue to write a taser ratio as well as and average booking weekend, she felt pages and over time and but that again folks so its a simple answer.
E Commerce is to continue to flow the sea itself and what not worried about monetization of C O M.
Back to a game with a massive user base and a high and the speech and then this is Ah.
Tom very naturally and you look at our woman and and also top level and well at the bottom line.
Cool novel, especially Oh, we then and even.
Hi that hardwood and slide and.
It just comes naturally when you know that business day, so steady and it's something that and we continue to focus on cost we have very no careful about efficiency and Oh.
Sea and stuff and Oh.
Oh of course watching the natural and market dynamics and be very close and news and this is still does a top priority.
Our next question is from Mark Congrats from Morgan Stanley Go ahead.
Hi, guys I'm just had a question on the games business, specifically for Latin America.
And we obviously heard from me you guys lost she will potentially rolling Yeah Sea third party publishing business in that marketplace and then we have we've seen the huge success of free but that's been a quieter coming through on that front, but just wanted to ask would go to share some of the initiatives that you've been doing specifically this year.
Some of the games and potentially come through into specifically into Latin America and then following on that is is there an opportunity to replicate that potential third party publishing business in India as well thanks guys.
Thank you.
And stuff so on publishing sites, we continue to work very closely with our thoughts and developer partners globally and to discuss potential opportunities and Oh go market and the performance of free filings with utility sales market.
It's and it's definitely and very helpful. You know basically a data point for all active also apartments and assessing our understanding of the market operational free facilities and a strong capability to fly so well and Oh, we notice and.
To be difficult and complex market, where I would say not.
See another player that has all the scale and achieved a the kind of track record and has kinda does that put us in a very unique position globally.
And driving gross on a mobile game and fourth side I think we'll continue to work with our partners and potential partners and and usually don't disclose.
I will say simple initiate is force exception for a pipeline for confidentiality reasons and you'll see it when he officially announce it but that's not something done and also could be just as good.
Our next question is from I. So yeah from credit Suisse go ahead.
Yes, hi.
Good evening, everyone I've got the peak gross comes close to and the gaming site.
And last two quarters, you can really strong quarter and you've got the growth of more than 30 people working on that keeping price.
Maybe I think given back to be fine. If you can provide and if you Didnt look I love and <unk> has been also coincided with the Google, but we try and market [laughter] and it'd be such a strong performance on the free play. It you can see you noted I think moving and U.S.
And did they didn't give anymore and that this new happening much back out and the other countries, which are shown gross but he is low.
That's coming from is booked anybody feel good that the new gross I know you mentioned that you believe that the deals. That's good long lived to do but just can give some data points to gross income and put the <unk>.
That is number one a new.
I'm boot and a new games launches, we know why did you see some new Gibbs from you and any color and anything that would be helpful to us and other things like legal and they didn't move by and its been loans.
You guys didn't get it and even so this new should go up go new in the quarter and Nicholas Please.
<unk>.
Lastly on the consolidated EBITDA, if you look at you.
Your commodity up North America, and the profitability side or if you become put in New York and continue to get up and go profitability is it any oh future. If you look at it.
Is it likely to be mean, there's what he is going to fluctuate quarter and caught and different pick up on a though you called most so no investment that you have to make thank you.
Okay. Thank you.
HM.
He took himself an hour or so.
So performance and sub sea fire and revenue contribution we talk we bought Li three and you know buckets and southeast Asia, and Taiwan, and Latin America, and then and you know the rest of the world, which are the what we call the emerging new and legends on T. and lock and for us.
And Ah that's exactly the by time of launching and and in day to day gauge smells and he said he comes with that and I and we see that revenue contribution coming from all three regions.
And and say much about it and so on and so we see very strong trends and all three buckets and that isn't there and Karachi and of course, if you speak about and also well potential and not only are probably the the TMR kit for that.
The weighted opportunities are intense up you know given the current day is old penetration, yet and flow watch it and many of which including and you know some that price and that markets and haven't we absolutely are captured and ER and then I wouldn't say formally interest yet.
And I think they're still right and a long runway and and opportunity for our team to tap did not meet GAAP, whereas for and Southeast Asia and Taiwan for example, a little countries, it's like using engagement and a deep and your monetization and same flow in Latin America, and which is.
Relative to the new watch and fulfill E sports and again, I think and some stuff how hum updates of temptation can be including the pay the penetration and they should be seen.
And actually very gone softer trends that showcases the market has a nice and this potential if not more and then you know southeast Asia and as I mentioned before so I think were very optimistic and continuing to growing the team there.
And and that is and one reason that gave us confidence and the sustainability of physicians and gross well see fire and if you look at no.
Oh, and you don't hear both Q1 and it was at 30% a two to one day, 60% to free 100% and so it was a very fast and that's a celebration I think and that's why we are very happy to see that up and I'll projection.
For Q4, and sustain the strong performance of two suites and Ah touching to get to close to the three digit gross four phases out and all of this magnitude I think it's a it's a quite an achievement football game teams and.
And the dam will continue to flows are looking for and Mumbai and.
In terms of Ah on EBITDA trajectory, Oh, we do not give guidance on EBITDA and.
I've said before that.
So I'll focus for each of our business and to sign gross and so given that how about a potential no.
This new set they as well as a low penetration and many of the CLO market, yes, and each of our core business and.
And I think that the opportunity and the digital economy seems all regions and stuff all game business in particular flow movies is.
The way ahead of us to tap.
And just for each all businesses and also a very confident so the ultimate false and associate with business.
Caspian Sea businesses, Cig, lossmaking, spotlight and still Mako Nida in E commerce and cannot be profitable. Besides a very healthy margin and so they said, yes, and I think the ultimate business model, that's been very well Susan.
I think the question is how can we scale and all of this is and.
And and efficient and plates and and this is my school and watch it and we will continue to execute and our track record has shown that we focus on both that's all and deficiency and at same time and so when the and the margin improvement.
Improvement naturally comps income Uh huh.
When and say this is something that and we try and theres lots of artificial inside it.
That's correct.
Question and answer session I would now like to turn the cash back to me songs for closing remarks go ahead.
Thank you everyone for joining todays call. We look forward to speaking to you all again next quarter. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.