$Sea (SE.US)$ Sea has reported a 3rd consecutive profitable ...

Sea has reported a 3rd consecutive profitable quarter, posting a US$331 million profit for the three months ended Jun 30, compared to a loss a year prior.

Revenue for the second quarter rose 5.2% to US$3.1 billion, from US$2.9 billion in Q2 2022. However, revenue for the latest quarter was still below the forecast amount of US$3.3 billion.

Tepid spending amid a challenging macroeconomic outlook pressured Sea's e-commerce business Shopee and caused a steep decline in its mobile gaming business.

In the three months ended June 30, sales from the digital entertainment segment, which includes gaming platform Garena, fell over 41%, declining for the fifth quarter in a row. Sales from the financial services business were up over 53%.

E-commerce revenue, which contributes about two-thirds of the company's top line, grew about 21% to US$2.1 billion from a year earlier, but missed expectations of US$2.25 billion.

Sea will be investing to grow Shopee. Li warned that this might impact the group's bottom line and result in losses for the segment. The key metrics that Sea will be focused on for its e-commerce segment will include its active user base and user engagement, particularly in the live-streaming portion.