Sea’s Garena Snapshot

Some Sea’s Digital Entertainment charts for housekeeping purpose.

User Base

Monetization

Margin Profile

Talking Points in DE

• Fully self-developed game, Free Fire, launched on iOS App Store & Google Play Store on December 4, 2017. Free Fire is a battle royale type of mobile game developed in-house by Garena.
  • Daily active user (DAU) from over 130 markets worldwide
    • 1Q20: 80m peak DAU
    • 4Q19: 60m peak DAU
    • 3Q19: m peak DAU (cumulative adjusted revenue reached US$1 Billion)
    • 2Q19: m peak DAU
    • 1Q19: 50m peak DAU (450m global registered users)
    • 4Q18: 40m peak DAU (350m global registered users); (self-dev: 44.5% DE adj rev )
    • 3Q18: 27m peak DAU (200m global registered users)
    • 2Q18: 16m DAU (in June, self-developed game accounted for 13% DE adj rev)
    • 1Q18: 13m DAU
    • 4Q17: 6m DAU

• Macro Trend
  • Smartphone penetration in the region (4Q17)

• Strategic Update
  • 2Q18
    • moving from PC-only to mobile-first
    • moving from pure game publishing to both game publishing and development
    • expanding from a regional footprint to a global presence (core -> )
  • 3Q18
    • partnership with Tencent (granted a right of first of refusal to publish its mobile and PC games)

Business

• Game publishing:
  • 1st party (Free Fire)
  • 3rd party – Tencent under right of first refusal agreement such as Tencent’s Speed Drifters and Activision & Tencent Games’ Call of Duty: Mobile
  • 3rd party – Others such as PUBG Corporation’s PUBG LITE
• Game development: studio in Shanghai (200+ developers as of 4Q18)