Sea Limited's Q2 2025: Key Contradictions in Advertising Take Rates, Monee Strategy, and E-Commerce Margins

Advertising take rate expectations, investment strategy in Monee, ad take rate improvement, e-commerce profitability and margins, and logistics investment and impact on EBITDA margins are the key contradictions discussed in Sea Limited's latest 2025Q2 earnings call.



E-commerce Growth and Profitability:
- Sea Limited's Shopee reported 25% year-on-year growth in GMV for the first half of 2025.
- The growth was driven by increased active buyers, higher purchase frequency, and improved service quality, including faster delivery times and new initiatives like instant delivery options.

Financial Services Expansion:
- Monee's loan portfolio grew over 90% year-on-year, reaching $6.9 billion by the end of Q2.
- This expansion was supported by prudent risk management, deep integration with the shopping ecosystem, and the use of AI in credit models.

Digital Entertainment Success:
- Garena's bookings were up 23% year-on-year in Q2, driven by a significant increase in active user base and enhanced paying user penetration.
- The success of Free Fire and strategic IP collaborations, such as Netflix's Squid Game, contributed to this growth.

Advertising Revenue Increase:
- Shopee's core marketplace revenue increased by 46% year-on-year, with advertising revenue contributing significantly.
- This growth was attributed to improved ad tech and traffic allocation efficiency, as well as increased adoption of ad products by sellers.