Mittal pointed out that Sea’s e-commerce and digital financial services segments are expected to continue to report losses “for another two years due to the intense competition” on a basis of adjusted earnings before interest, taxes, depreciation and amortization.
With respect to the relationship with Tencent — which owned 25.6% of shares as of March, making it the major shareholder — Sea has a right of first refusal to publish Tencent’s game titles in key markets in Southeast Asia.
Asked whether Washington’s increasing sanctions on Chinese tech companies amid bilateral tensions would potentially have some impact on Sea, Li said there is no impact at all.
“We are a Singapore company and listed in New York,” he said. “Tencent has invested in many companies globally, and we are just one of them.”
Additional reporting by Shotaro Tani and Ismi Damayanti in Jakarta.
The article was first published on Nikkei Asia.