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| === Total Addressable Market === | | === Total Addressable Market === |
| Sea Limited operates digital entertainment, e-commerce, and digital financial services businesses primarily in Southeast Asia. Its main sector is communication services and within that sector it operates in the interactive home entertainment industry. Its primary markets include Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Singapore.
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| * Revenue in the Home Entertainment segment reached US$176m in 2022.
| | === Key Market Drivers === |
| * Revenue is expected to show an annual growth rate (CAGR 2022-2027) of 7.71%, resulting in a projected market volume of US$276m by 2027.
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| === Key Market Drivers and opportunities === | |
| The main market drivers include GDP/capita, level of digitization, and consumer attitudes toward apps.
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| Moreover non-financial market drivers include the following:
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| * Artificial intelligence and machine learning presents vast opportunities for media and entertainment firms to understand what content, shows, movies and music consumers want.
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| * The upcoming mass 5G rollout in countries such as Singapore and Malaysia, will allow firms to expect more entertainment and gaming innovations such as virtual and augmented reality will be introduced to the market. As such, the demand for hyper-personalised content and immersive entertainment will continue to increase.
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| * With the help of platforms and data analytics technologies, companies can scale their use of data while complying with consumer privacy regulations and reducing their costs. Through data-driven decision-making, companies within the media and entertainment sector can deliver personalised content and experiences, retain customers, grow their business, and build a data-driven future.
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| * This success is fuelled by substantial financial backing from central governments. For example, China plans to build a USD 30 billion fund to ensure they are a world leader in AI by 2030. At the same time, India is making headway with mobile wallets and Progressive Web Applications to streamline in-app experiences (especially for places with slow mobile broadband). Such holistic developments in the infrastructure, which acts as a technical backbone to the market will result in growth opportunities and improved customer retention.
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| === Key Market Challenges and Risks === | | === Key Market Challenges and Risks === |
| Some of the main challenges and risks that can affect Sea Limited, as mentioned in their Q2-2023 earnings report include the following.
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| * Expected changes or guidance in its revenue, costs, or expenditures.
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| * Ability to continue sourcing, developing, and offering new and attractive online games.
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| * Ability to offer other engaging digital entertainment content.
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| * Expected growth of its digital entertainment, e-commerce, and digital financial services businesses.
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| * Expectations regarding growth in its user base, level of engagement, and monetization.
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| * Ability to continue developing new technologies and upgrading existing technologies.
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| * Expectations regarding the use of proceeds from financing activities, including follow-on equity offerings and convertible notes offerings.
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| * Growth and trends of its markets and competition in its industries.
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| * Government policies and regulations relating to its industries, including effects of government orders or actions on its businesses.
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| * General economic, political, social, and business conditions in its markets.
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| * Impact of widespread health developments, including the COVID-19 pandemic, and responses thereto (such as voluntary and mandatory quarantines, shut downs, restrictions on travel and activities, and availability of effective vaccines or treatments).
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| * Impact of economies reopening further in response to the COVID-19 pandemic.
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| == Financials == | | == Financials == |
