Sea Ltd (SE) 2018 Q4 法說會逐字稿

Good day everyone, and welcome to Sea Limited Fourth Quarter and Full Year 2018 Results Conference Call.

大家好，歡迎參加 Sea Limited 2018 年第四季和全年業績電話會議。

(Operator Instructions) And please note that today's event is being recorded.

（操作員說明）請注意，今天的活動正在錄製中。

And I would now like to turn the conference over to Howard Soh.

現在我想將會議交給 Howard Soh。

Please go ahead.

請繼續。

Thank you very much.

非常感謝。

Good morning, and good evening, everyone, and welcome to Sea's 2018 fourth quarter and full year earnings conference call.

大家早上好，晚上好，歡迎參加 Sea 2018 年第四季和全年財報電話會議。

I'm Howard Soh, Director of Corporate Development and Strategy at Sea.

我是 Howard Soh，海上企業發展與策略總監。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our press release.

在我們繼續之前，我想提醒您，我們可能會做出前瞻性陳述，這些陳述本身就存在風險和不確定性，並且可能由於我們新聞稿中所述的各種原因而無法實現未來。

Also, this call includes discussion of certain non-GAAP financial measures such as adjusted revenue, adjusted EBITDA and adjusted net loss.

此外，本次電話會議也討論了某些非公認會計準則財務指標，例如調整後收入、調整後 EBITDA 和調整後淨虧損。

We believe these measures can enhance our investors' understanding of actual cash flows of our major businesses when used as a complement to our GAAP disclosures.

我們相信，這些措施可以增強投資者對我們主要業務實際現金流量的理解，作為我們公認會計準則揭露的補充。

For a discussion on the use of non-GAAP financial measures and reconciliation with the closest GAAP measures, please refer to the section on non-GAAP financial measures in our press release.

有關非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的調整的討論，請參閱我們新聞稿中有關非 GAAP 財務指標的部分。

Let me begin by introducing the management team on the call: We have our Chairman and Group Chief Executive Officer, Forrest Li; our Group Chief Financial Officer, Tony Hou; and our group General Counsel, Yanjun Wang.

首先讓我介紹一下此次電話會議的管理團隊：我們的董事長兼集團執行長李福雷 (Forrest Li)；我們的集團財務長 Tony Hou；以及我們集團的總法律顧問王彥軍。

Forrest and Tony will share strategy and business updates, operating highlights and financial performance for the quarter.

福雷斯特和托尼將分享本季的策略和業務更新、營運亮點和財務表現。

This will be followed by Q&A session, in which we welcome any questions you have.

接下來將進行問答環節，歡迎您提出任何問題。

With that, let me turn the call over to Forrest.

現在，讓我把電話轉給福雷斯特。

Thanks, Howard.

謝謝，霍華德。

Hello everyone and thank you for joining today's call.

大家好，感謝您參加今天的電話會議。

I'm very pleased to announce that we closed out 2018 well ahead of our ambitious targets.

我很高興地宣布，2018 年我們遠遠超越了雄心勃勃的目標。

Building on our strong results in the fourth quarter, we exceeded the high end of each of the projections we provided in our latest guidance last year.

基於第四季度的強勁業績，我們超越了去年最新指導中提供的每項預測的上限。

Let me start by quoting out Garena's success.

讓我先引用 Garena 的成功。

Our Digital Entertainment adjusted revenue for the full year of 2018 reached $661 million, exceeding the high end of our guidance by $41 million.

我們的數位娛樂 2018 年全年調整後收入達到 6.61 億美元，比我們指導的上限高出 4,100 萬美元。

In the fourth quarter, we recorded adjusted revenue of $231.4 million, up 60% from the third quarter and it is expected to show further robust growth in the first quarter of 2019.

第四季度，我們錄得調整後營收 2.314 億美元，較第三季成長 60%，預計 2019 年第一季將呈現進一步強勁成長。

And our adjusted EBITDA margin for the quarter goes to 45.5% compared to 37.2% for the previous quarter.

本季調整後的 EBITDA 利潤率為 45.5%，而上一季為 37.2%。

It is expected to improve further in the first quarter of 2019.

預計2019年第一季將進一步改善。

We believe Garena's consistent strong performance underlines our success in executing our core strategy to materially expand our Digital Entertainment business from being a PC-focused regional publisher to a global developer and publisher, with core strengths in mobile games and the key focus on emerging markets, which greatly expands our total addressable market size.

我們相信，Garena 持續強勁的業績突顯了我們成功執行了核心戰略，將我們的數位娛樂業務從專注於PC 的區域發行商拓展為全球開發商和發行商，在行動遊戲領域擁有核心優勢，並重點關注新興市場，這大大擴大了我們的總目標市場規模。

Free Fire is now one of the most popular battle royale games in the world.

Free Fire 現在是世界上最受歡迎的大逃殺遊戲之一。

We recently hit a new record high of more than 350 million registered users and the more than 40 million peak daily active users.

我們最近創下了超過 3.5 億註冊用戶和超過 4,000 萬高峰日活躍用戶的新紀錄。

According to App Annie, for the full year of 2018, Free Fire was the fourth most downloaded mobile game in the world across the Apple App Store and the Google Play Store combined.

根據 App Annie 的數據，2018 年全年，《Free Fire》是 Apple App Store 和 Google Play Store 中全球下載量第四大的手機遊戲。

It has also hit the milestone of recording more than 100 million monthly active users.

它也達到了每月活躍用戶超過1億的里程碑。

Importantly, we are also making excellent progress on monetizing Free Fire's massive and highly active user base.

重要的是，我們在利用 Free Fire 龐大且高度活躍的用戶群獲利方面也取得了巨大進展。

And this is reflected in our adjusted revenue growth and EBITDA margin improvement.

這反映在我們調整後的營收成長和 EBITDA 利潤率的改善。

One of the crucial factors in Free Fire's growth is the fast-growing and engaged global community of players.

《Free Fire》成長的關鍵因素之一是全球玩家社群的快速成長和參與度。

Building on this strong community sentiment, from late 2018 we have been rolling out the Free Fire World Cup a global eSports tournament.

基於這種強烈的社群情緒，從 2018 年底開始，我們一直在推出 Free Fire 世界盃這一全球電競錦標賽。

We believe this global tournament will help to drive sustained excitement and solidify Free Fire's position as one of the leading games in that genre globally.

我們相信，這場全球錦標賽將有助於推動持續的興奮感，並鞏固《Free Fire》作為全球該類型遊戲領導者的地位。

As Free Fire's success has demonstrated, we believe that Garena has built a unique set of capabilities in developing and publishing global hit games that also address the needs of gamers in faster growth emerging markets.

正如 Free Fire 的成功所證明的那樣，我們相信 Garena 在開發和發行全球熱門遊戲方面建立了一套獨特的能力，同時也滿足了快速成長的新興市場遊戲玩家的需求。

We have a deep understanding of the unique profiles and the needs of gamers in such market and unrivaled access to data and insights about these gamers because of our huge user base.

我們對此類市場中遊戲玩家的獨特特徵和需求有著深入的了解，並且由於我們龐大的用戶群，我們對這些遊戲玩家的數據和見解擁有無與倫比的訪問權限。

We are also deeply rooted in these markets with strong local operations capabilities, and not only in our core markets but also in other major markets like Latin America.

我們也深深紮根於這些市場，擁有強大的本地營運能力，不僅在我們的核心市場，而且在拉丁美洲等其他主要市場。

More importantly, with our strong technology and execution capabilities, we are able to quickly identify and take advantage of market opportunities.

更重要的是，憑藉我們強大的技術和執行能力，我們能夠快速識別並利用市場機會。

We now have a strong and growing game development team with more than 200 developers in our games studio in Shanghai.

我們位於上海的遊戲工作室現在擁有一支強大且不斷成長的遊戲開發團隊，擁有 200 多名開發人員。

We're working on enhancing Free Fire and on building out our self-developed games pipeline.

我們正在努力增強《Free Fire》並建立我們自主開發的遊戲管道。

Free Fire is a great example of how quickly we're able to identify and tap into new market opportunities.

Free Fire 就是一個很好的例子，展示了我們能夠如何快速地識別和利用新的市場機會。

It was one of the first mobile battle royale games to come to market.

它是最早上市的手機大逃殺遊戲之一。

At the same time, our game publishing business continues to grow from strength to strength as global IP holders recognize our unrivaled ability to tap into the faster-growing game communities in our region.

同時，隨著全球智慧財產權持有者認識到我們在進入本地區快速成長的遊戲社群方面擁有無與倫比的能力，我們的遊戲發行業務不斷發展壯大。

For instance, we have begun loading out Speed Drifters as the first game that we are publishing under our right of first refusal arrangement with Tencent that we announced last quarter.

例如，我們已經開始將《Speed Drifters》作為我們上季度宣布的與騰訊的優先購買權安排下發布的第一款遊戲。

And I'm pleased to say that we have agreed with PUBG Corporation to bring into our key markets in Southeast Asia PUBG LITE, a PC game adapted from their global hit game PUBG tailored to our region.

我很高興地說，我們已與 PUBG Corporation 達成協議，將 PUBG LITE 引入我們的東南亞主要市場，這是一款根據他們的全球熱門遊戲 PUBG 改編而成的 PC 遊戲，專為我們地區量身定制。

Looking to the year ahead, we intend to continue to drive growth in our Digital Entertainment business as we continue to build out a world-class in-house game development arm and strengthening our publishing capabilities.

展望未來的一年，我們打算繼續推動數位娛樂業務的成長，繼續打造世界一流的內部遊戲開發部門並加強我們的發行能力。

Turning to E-commerce.

轉向電子商務。

Our goals for Shopee in 2018 were to continue to strengthen its market leadership position across its key markets with increasing efficiency and to ramp up monetization, and I'm pleased to say that we have delivered on all fronts.

我們 2018 年 Shopee 的目標是繼續加強其在關鍵市場的市場領導地位，提高效率並提高盈利能力，我很高興地說我們在所有方面都取得了成果。

E-commerce GMV for the fourth quarter was $3.4 billion representing, 27% growth on the $2.7 billion in the third quarter.

第四季電子商務 GMV 為 34 億美元，較第三季的 27 億美元成長 27%。

During the quarter, we recorded 206.9 million orders, up 31% from the third quarter.

本季度，我們錄得 2.069 億份訂單，較第三季成長 31%。

Meanwhile, during the 24 hours of our 11.11 Sale in 2018, we hit a new record for Shopee of over 11 million orders in a single day.

同時，在2018年11.11促銷期間的24小時內，我們創下了Shopee單日超過1100萬訂單的新紀錄。

And just one month later, during our 12.12 sale, we broke that again recording over 12 million orders in 24 hours on December 12.

僅僅一個月後，在 12.12 促銷期間，我們再次打破了這一記錄，即 12 月 12 日 24 小時內訂單量超過 1200 萬份。

On top of those 12 million orders, approximately 5.4 million came from our largest market Indonesia.

除了這 1200 萬份訂單之外，大約 540 萬份訂單來自我們最大的市場印尼。

Shopee's continuing solidification of leadership in Indonesia is a powerful demonstration of the strong flywheel effect it enjoys.

Shopee在印尼的領導地位不斷鞏固，有力地證明了其強大的飛輪效應。

In the fourth quarter, Shopee recorded total orders of 83.8 million or a daily average of 0.9 million in Indonesia, further extending its leadership as the largest E-commerce platform there.

第四季度，Shopee 在印尼的總訂單量為 8,380 萬份，日均訂單量為 90 萬份，進一步鞏固了其作為印尼最大電商平台的領先地位。

For the full year of 2018, Shopee achieved $10.3 billion in GMV, which was above the high end of the recent guidance of $9.7 billion.

2018 年全年，Shopee 實現了 103 億美元的 GMV，高於近期 97 億美元指引的上限。

We provided in the third quarter.

我們在第三季提供了。

Reaching $10 billion in annual GMV was an important milestone for Shopee and an impressive achievement for platform that is just a 3 years old.

年度 GMV 達到 100 億美元對於 Shopee 來說是一個重要的里程碑，對於成立僅 3 年的平台來說也是一項令人印象深刻的成就。

You can see the sustained improvements in the efficiency of our sales and the marketing spend.

您可以看到我們的銷售效率和行銷支出持續提高。

In the fourth quarter, sales and marketing expenses as a percentage of GMV fell once again to 5.4% down from 5.7% last quarter and 8.5% for the same period a year ago.

第四季度，銷售和行銷費用佔GMV的比例再次下降至5.4%，較上季的5.7%和去年同期的8.5%有所下降。

In fact, shipping subsidies declined in absolute dollar terms in the fourth quarter compared to the third quarter.

事實上，與第三季相比，第四季的航運補貼以美元絕對值計算下降。

It is important to note that Shopee achieved this sustained improvement in marketing efficiency while its GMV grew by 27% and orders grew by 31% quarter-on-quarter, demonstrating that we are able to both grow our platform while increasing efficiency at the same time.

值得注意的是，Shopee 實現了行銷效率的持續提升，GMV 環比增長了 27%，訂單環比增長了 31%，這表明我們能夠在發展平台的同時提高效率。 。

We are able to do this because of the durable leadership position we have achieved

我們能夠做到這一點是因為我們已經取得了持久的領導地位

We expect the sales and marketing expenses to start trending down in absolute dollar terms this year, as we continue to scale with greater efficiency, benefit from strong organic user growth and solidify our market leadership in the region.

我們預計今年的銷售和行銷費用以絕對美元計算將開始下降，因為我們繼續以更高的效率擴大規模，受益於強勁的有機用戶成長並鞏固我們在該地區的市場領導地位。

On the monetization front, E-commerce adjusted revenue grew over 16x year-on-year to $290.7 million for 2018 as ramp up our monetization efforts during the year.

在貨幣化方面，隨著我們在這一年加強貨幣化力度，2018 年電子商務調整後營收年增超過 16 倍，達到 2.907 億美元。

And in the fourth quarter adjusted revenue grew more than 78%, compared to the third quarter to $126.9 million.

第四季調整後營收較第三季成長超過 78%，達到 1.269 億美元。

Moreover, we expect Shopee to record a positive quarterly of adjusted EBITDA before allocation of the headquarters' common expenses for the first time in the first quarter of 2019 in Taiwan.

此外，我們預計 Shopee 將在 2019 年第一季在台灣首次在分配總部公共費用之前錄得正季度調整後 EBITDA。

We see the same dynamics around network effects that accrued to clear leader in a two-sided marketplace model starting to play out in our other markets.

我們看到，雙邊市場模型中明顯的領導者所產生的網路效應同樣的動態開始在我們的其他市場上出現。

Shopee's ability to grow rapidly over a short period of time to achieve regional market leadership is a testament to its successful strategy and ability to execute that strategy efficiently and effectively.

Shopee 能夠在短時間內快速成長並取得區域市場領導地位，這證明了其成功的策略以及高效且有效地執行該策略的能力。

Shopee has been focusing on building a mobile-centric socially engaging marketplace with an emphasis on high margin products from a highly diverse seller base.

Shopee 一直致力於建立一個以行動裝置為中心的社交市場，重點關注來自高度多元化賣家群體的高利潤產品。

In addition to that, Shopee has also combined its marketplace offering with integrated payments, logistics, infrastructure and the comprehensive seller services.

除此之外，Shopee 還將其市場產品與整合支付、物流、基礎設施和全面的賣家服務相結合。

And looking to the year ahead, we believe this strategic focus and our proven track record of successfully executing on our strategies we'll continue to drive growth at Shopee.

展望未來的一年，我們相信這項策略重點以及我們成功執行策略的良好記錄將繼續推動 Shopee 的成長。

In 2019, we intend to focus on growing with efficiency, while looking to further ramp up monetization through deeper engagement with our sellers and the buyers.

2019 年，我們打算專注於高效成長，同時尋求透過與賣家和買家更深入的互動來進一步提高獲利能力。

To sum up, I'm very proud of our performance in the fourth quarter and the full year of 2018.

總而言之，我對我們 2018 年第四季和全年的表現感到非常自豪。

Across the business, 2018 was a transformative year as Shopee extended its lead in E-commerce and Garena emerged as the leading global game developer and publisher.

就整個產業而言，2018 年是變革的一年，Shopee 擴大了在電子商務領域的領先地位，Garena 成為全球領先的遊戲開發商和發行商。

We enter into 2019 in a stronger position than ever before, poised for growth on all fronts.

進入 2019 年，我們的地位比以往任何時候都更加強大，準備在各個方面實現成長。

We are hugely excited for the year ahead and have once again set ambitious growth targets for ourselves as reflected in our guidance for 2019.

我們對未來的一年感到非常興奮，並再次為自己設定了雄心勃勃的成長目標，這反映在我們的 2019 年指導中。

With that, I will invite Tony to share more about the financials.

接下來，我將邀請托尼分享更多有關財務的資訊。

Thank you, Forrest, and thanks to everyone for joining the call.

謝謝你，福雷斯特，也謝謝大家加入電話會議。

We have included detailed quarterly financial schedule together with a corresponding management analysis in today's press release, so I'll focus my comments on the key financial metrics.

我們在今天的新聞稿中提供了詳細的季度財務計劃以及相應的管理分析，因此我將重點放在關鍵財務指標上。

We see overall our fourth quarter total adjusted revenue with $389.3 million, an increase of 137% year-on-year and 60% quarter-on-quarter.

總體而言，我們預計第四季度調整後總收入為 3.893 億美元，年增 137%，季增 60%。

This was mainly driven by the growth of our Digital Entertainment business, especially for our self-developed game, Free Fire, and our continuous monetization efforts in our E-commerce business in the past quarters.

這主要是由於我們的數位娛樂業務的成長，特別是我們自主開發的遊戲《Free Fire》的成長，以及過去幾季我們在電子商務業務上持續的貨幣化努力。

Digital Entertainment adjusted revenue was $231.4 million, an increase of 63% year-on-year and 60% quarter-on-quarter.

數位娛樂調整後營收為2.314億美元，年增63%，季增60%。

The growth was primarily driven by the enlarged user base, and the improvement in the monetization of our portfolio games, especially Free Fire.

這一成長主要得益於用戶群的擴大以及我們的遊戲組合（尤其是《Free Fire》）貨幣化的改善。

Digital Entertainment adjusted EBITDA was $105.2 million, doubled year-on-year and an increase of 96% quarter-on-quarter.

數位娛樂調整後 EBITDA 為 1.052 億美元，較去年同期翻倍，季增 96%。

Thanks to the strong topline growth and our self-developed game accounting for an increased share of revenue.

由於強勁的營收成長以及我們自主開發的遊戲在收入中所佔的份額增加。

E-commerce adjusted revenue was $126.9 million, up 78% quarter-on-quarter from the third quarter of 2018.

電子商務調整後營收為1.269億美元，較2018年第三季較上季成長78%。

Of this $126.9 million in adjusted revenue, marketplace revenue was $87.6 million up 884% year-on-year and 74% quarter-on-quarter, while product revenue was $39.3 million up 9,725% year-on-year and 88% quarter-on-quarter

Of this $126.9 million in adjusted revenue, marketplace revenue was $87.6 million up 884% year-on-year and 74% quarter-on-quarter, while product revenue was $39.3 million up 9,725% year-on-year and 88% quarter-on -四分之一

E-commerce adjusted EBITDA loss was $277.5 million as we continued our investments to fully capture the market opportunity in the region.

由於我們繼續投資以充分抓住該地區的市場機會，電子商務調整後 EBITDA 損失為 2.775 億美元。

We will continue driving the high quality growth by serving users' needs better and improving the operational efficiencies.

我們將更能服務用戶需求、提升營運效率，持續推動高品質發展。

Digital financial services adjusted revenue was $3.1 million, a decrease of 25% year-on-year from $4.1 million in the first quarter of last year, as we focused our efforts on strengthening the infrastructure to support our existing platforms.

數位金融服務調整後收入為 310 萬美元，較去年第一季的 410 萬美元下降 25%，因為我們專注於加強基礎設施以支援現有平台。

Adjusted EBITDA loss was $9.8 million in the fourth quarter of 2018 compared to a loss of $7.6 million in the same period of 2017.

2018 年第四季調整後 EBITDA 虧損為 980 萬美元，而 2017 年同期虧損為 760 萬美元。

Returning to our consolidated numbers.

回到我們的綜合數字。

We recognized a net non-operating income of $53 million in the fourth quarter of 2018.

2018 年第四季我們確認非營業收入淨額為 5,300 萬美元。

This was primarily due to a fair value accounting driven valuation gain of $61.2 million from the convertible notes we issued before our IPO.

這主要是由於我們在 IPO 之前發行的可轉換票據產生了 6,120 萬美元的公允價值會計驅動估值收益。

We had a net income tax expense of $3 million in the fourth quarter of 2018, which was primarily due to corporate income tax and withholding tax recognized in our Digital Entertainment segment.

2018 年第四季度，我們的淨所得稅費用為 300 萬美元，這主要是由於我們的數位娛樂部門確認的企業所得稅和預扣稅。

Finally, our adjusted net loss, which is net loss adjusted to exclude share-based compensation expenses, and the fair value change for the pre-IPO convertible notes was $321.2 million in the fourth quarter of 2018 as compared to $199.6 million for the same period in 2017.

最後，2018 年第四季我們的調整後淨虧損（不包括股權補償費用而調整後的淨虧損）和 IPO 前可轉換票據的公允價值變動為 3.212 億美元，而同期為 1.996 億美元2017年。

I will conclude with our guidance for the full year of 2019.

最後我將介紹我們對 2019 年全年的指導。

We currently expect Digital Entertainment adjusted revenue to be between $1.2 billion to $1.3 billion, representing year-on-year growth of 82% to 97%.

我們目前預計數位娛樂調整後營收將在 12 億美元至 13 億美元之間，年增 82% 至 97%。

In addition, we expect E-commerce adjusted revenue for the full year of 2019 to be between $630 million and $660 million, representing year-on-year growth of 117% to 127%.

此外，我們預計2019年全年電商調整後營收將在6.3億美元至6.6億美元之間，年增117%至127%。

With that, let me turn the call back to Howard.

現在，讓我把電話轉回給霍華德。

Thank you, Forrest and Tony, we are now ready to open the call for questions.

謝謝福雷斯特和托尼，我們現在準備開始提問。

Operator, please proceed.

接線員，請繼續。

(Operator Instructions) And the first questioner today will be Miang Chuen Koh with Goldman Sachs.

（操作員說明）今天的第一位提問者是高盛公司的 Miang Chuen Koh。

A few questions from me for games, the player ratio was up significantly Q-over-Q.

我問了一些關於遊戲的問題，玩家比例比上季顯著上升。

I presume this is mainly Free Fire.

我認為這主要是Free Fire。

But has the monetization started already in the second quarter?

但貨幣化已經在第二季開始了嗎？

Why is there such a big jump, I guess, 4Q?

我猜，為什麼第四季會出現如此大的跳躍？

And for games as well, in terms of your FY '19 revenue guidance, is the expected growth just coming from Free Fire and Speed Drifters or does it include other new games from Tencent or even your own?

對於遊戲而言，就您 19 財年的收入指引而言，預期成長是否僅來自《Free Fire》和《Speed Drifters》，還是包括騰訊甚至您自己的其他新遊戲？

And then, a couple of questions and few comments if I may, as well -- I'm sorry.

然後，如果可以的話，還有幾個問題和一些評論——我很抱歉。

So the cost of services for E-commerce continues to rise quite a bit more than revenues.

因此，電子商務服務成本的增幅持續遠高於營收的增幅。

I know there are some explanation in press release on the cost items that contribute to that.

我知道新聞稿中有一些關於造成這種情況的成本項目的解釋。

However, could there be more color that, a bit more specifics on other perhaps cost increases that or cost buckets that we should be aware of?

然而，是否可以有更多的顏色，更多關於其他可能的成本增加或我們應該注意的成本桶的細節？

And when can we see revenues trend more in line with increase in cost of services as well.

我們什麼時候才能看到收入趨勢與服務成本的成長更加一致。

And then finally, on the E-commerce revenue guidance for FY '19, is the Y-o-Y growth expected to come more from higher take rates from GMV increase?

最後，關於 19 財年的電子商務收入指引，預計年成長是否更多來自 GMV 成長帶來的更高的轉換率？

Sure.

當然。

Great.

偉大的。

Thanks for your questions.

感謝您的提問。

Let me start from the first one on the Garena side of things.

讓我從 Garena 方面的第一個開始。

You talked about overall player ratio for -- has bended upwards, that's right.

你談到了整體玩家比例——已經向上彎曲，這是正確的。

Yes, it is actually a reflection of the fact that the player ratio for Free Fire has gone up.

是的，這其實反映了《Free Fire》玩家比例上升的事實。

You're right that we have bottomed up, I think, the game a bit earlier on.

你是對的，我認為我們已經觸底了，遊戲早些時候就已經觸底了。

But recall that during the previous call, I actually mentioned that whenever we get high potential game, our first part, our duty is really to make sure that as many people as possible are playing the game.

但回想一下，在之前的電話會議中，我實際上提到，每當我們獲得高潛力遊戲時，我們的第一部分，我們的職責實際上是確保盡可能多的人正在玩遊戲。

Now that we have the numbers and as Forrest shared, more than 350 million registered users over 100 million MAUs and peak DAUs of over 40 million.

現在我們已經掌握了這些數字，正如 Forrest 分享的那樣，註冊用戶超過 3.5 億，每月活躍用戶數超過 1 億，峰值日活躍用戶數超過 4000 萬。

Now that we are in that position, we think that we are able to turn on the monetization levels a bit more strongly.

既然我們處於這個位置，我們認為我們能夠更強有力地開啟貨幣化水平。

So what you're seeing is that a lot of efforts in terms of our fourth quarter is really being focused in terms of converting free users to becoming paying users.

所以你看到的是，我們第四季的許多努力實際上都集中在將免費用戶轉變為付費用戶方面。

As a result that has affected the payer ratio and subsequently adjusted revenues for the fourth quarter.

結果，這影響了付款人比率，並隨後調整了第四季度的收入。

If we think about the 2019 guidance on the Garena side of things, yes, it's true.

如果我們考慮一下 Garena 方面的 2019 年指南，是的，這是真的。

It's actually quite robust in terms of where we think we're going land in terms of the overall guidance being $1.2 billion to $1.3 billion in the adjusted revenue for Digital Entertainment for 2019.

就我們認為 2019 年數位娛樂調整後收入 12 億至 13 億美元的整體指引而言，它實際上相當穩健。

It is coming off the back of a couple of things, you mentioned like Free Fire as well as some of our new titles like Speed Drifters.

這是您提到的《Free Fire》以及我們的一些新遊戲《Speed Drifters》等幾件事的結果。

But it's really a reflection of -- and we're reaping the dividend of a shift in our overall strategy.

但這確實反映了——我們正在收穫整體策略轉變的紅利。

When we set out several years ago, we were both primarily a PC-based pure publisher focused on solicitation in Taiwan.

幾年前，我們剛起步時，主要是一家專注於台灣招攬的 PC 純發行商。

And now we successfully made a transition towards being a lot more mobile centric from being a pure publisher to going into self-development.

現在，我們成功地從純粹的發行商轉變為更以行動裝置為中心，進入自我開發階段。

And of course, with the success of Free Fire, that's really given us a passport to spread our wings beyond solicitation in Taiwan to a lot of global emerging markets.

當然，隨著《Free Fire》的成功，這確實為我們提供了一張通行證，可以將我們的翅膀擴展到台灣以外的許多全球新興市場。

So access to places like Latin America, where Free Fire was top ranked game in Brazil in 2018 by MAUs, dollars and consumer spend and a top 5 for each of these items in Mexico and Argentina.

因此，我們可以進入拉丁美洲等地，其中《Free Fire》是 2018 年巴西按月活躍用戶數、美元金額和消費者支出排名最高的遊戲，在墨西哥和阿根廷這些項目均排名前 5。

Needless to say, that really has great implications in terms of our total addressable market for the future.

不用說，這對我們未來的整個潛在市場確實具有重大影響。

I will let Tony weigh in, in terms of the questions with regard to Shopee on the cost of services.

關於 Shopee 的服務成本問題，我會讓 Tony 發表意見。

For the cost of services, yes, you're right.

對於服務成本，是的，你是對的。

It's mainly the volume driven thing.

這主要是數量驅動的事情。

If we look at our cost component it mainly are bank transaction fees and also the cost of value-add services like logistics services.

如果我們看看我們的成本組成，主要是銀行交易費用以及物流服務等增值服務的成本。

And as the volume is ramping up, the cost of sales is also ramping up as well.

隨著銷量的增加，銷售成本也在增加。

Finally -- and sorry, and could you mind running us through that last question again also in terms of like EC revenue guidance?

最後，抱歉，您是否介意再次讓我們回答最後一個問題，例如 EC 收入指導？

Yes.

是的。

So I'm just wondering the Y-o-Y growth in EC revenues, is it coming more from higher take rates that you expect or more from GMV increase Y-o-Y?

所以我只是想知道 EC 收入的同比增長，是更多來自於您預期的更高的轉換率，還是更多地來自於 GMV 的同比增長？

Yes.

是的。

So we actually think that it's going to be a combination of both.

所以我們實際上認為這將是兩者的結合。

With GMV wise it's still going to continue to grow very, very robustly.

就 GMV 而言，它仍將繼續非常非常強勁地成長。

At the same time, we've also indicated that once we gained a good measure in terms of being the market leader, we can also look -- it is within our ability to start looking at monetization a bit more deeply.

同時，我們也表示，一旦我們獲得了成為市場領導者的良好衡量標準，我們也可以開始更深入地研究貨幣化。

And that's something that we've started to do already in the first quarter and you see it continuing to echo out throughout 2019.

這是我們在第一季就開始做的事情，你會看到它在 2019 年繼續迴響。

It'll come from a combination of commissions as well as advertising as well as value-added services.

它將來自佣金、廣告以及增值服務的組合。

Thank you.

謝謝。

And our next questioner today will be Alicia Yap with Citigroup.

今天我們的下一位提問者是花旗集團的 Alicia Yap。

I have some follow-up questions on the Digital Entertainment regarding the fourth quarter and also the guidance.

我對數位娛樂第四季以及指導有一些後續問題。

On the fourth quarter, can you share with us outside of the Southeast Asia regions, how much is the Free Fire now contribute?

第四季度，您能跟我們分享一下，在東南亞地區以外，Free Fire現在貢獻了多少？

And then regarding in terms of the guidance, I think how confident are you and then what sort of scenario that you are baking in to come up with the guidance?

然後就指導而言，我認為您有多大信心以及您在什麼樣的情況下提出指導？

In more detail what I mean is, can you share with us, if these coming from the gross billing and obviously the defer that you have and then also you're assuming Free Fire will continue to improve right on the user front and also the monetization?

更詳細地說，我的意思是，您能否與我們分享一下，如果這些來自總帳單，顯然是您的延遲，那麼您還假設 Free Fire 將繼續在用戶方面以及貨幣化方面得到改善？

And then also if you can give some colors on the Q-o-Q splits, that will be helpful.

然後，如果您可以在 Q-o-Q 分割上給出一些顏色，那也會很有幫助。

Then second question is on E-commerce, also wanted to follow up.

那麼第二個問題是關於電子商務的，也想跟進。

I realized at this time you guys are giving the adjusted revenue guidance rather than the GMV, which I think is indicative of your much more confidence in terms of the monetization.

我意識到此時你們給的是調整後的收入指引而不是 GMV，我認為這顯示你們對貨幣化更有信心。

But then could you share with us maybe the implied GMV guidance from -- the net revenue guidance that you have?

但是，您能否與我們分享一下您所擁有的淨收入指導中隱含的 GMV 指導？

And also if you can also give a little bit color in terms of, let's say, the growth rate on revenue on E-commerce, if we were to rank by country is it come from let's say Indonesia or other country?

另外，如果您還可以在電子商務收入成長率方面給出一些顏色，如果我們按國家/地區排名，那麼它來自印尼還是其他國家？

If you can kind of give us some colors in terms of the ranking and in terms of the growth rate that will be helpful.

如果您能給我們一些排名和成長率方面的信息，那將會有所幫助。

Thank you, Alicia.

謝謝你，艾莉西亞。

So, let's start on the Digital Entertainment side of things.

那麼，讓我們從數位娛樂方面開始吧。

So, outside of the core markets, right, of Southeast Asia and Taiwan, we achieved this growth that -- in terms of like our revenue -- adjusted revenue coming in from global emerging markets.

因此，在東南亞和台灣等核心市場之外，我們實現了這種成長——就我們的收入而言——調整了來自全球新興市場的收入。

So meaning outside of that core region, it was 28% in the first quarter.

因此，在核心區域之外，第一季的比例為 28%。

So -- and then when you -- we're talking about things such as the overall scenarios that we've mapped out in terms of the revised -- in terms of the new guidance for 2019, it comes down to a combination of factors.

因此，當我們談論諸如我們根據修訂後的 2019 年新指南制定的總體方案之類的事情時，這取決於多種因素的組合。

First of all, in terms of continued success on the Free Fire front, I think that's true.

首先，就 Free Fire 的持續成功而言，我認為這是事實。

We have already started very successfully converting a lot of the free users to join paying users.

我們已經開始非常成功地將大量免費用戶轉變為付費用戶。

But at the same time, we believe that there's also some optimization work that can happen in terms of trying to upscale the amount of ARPU pull or the average revenue per paying user on the Free Fire front.

但同時，我們認為還可以進行一些最佳化工作，以嘗試提高 Free Fire 方面的 ARPU 拉動量或每個付費用戶的平均收入。

At the same time, keep in mind that our publishing efforts continue to be very robust and that has materialized most recently in terms of PUBG LITE.

同時，請記住，我們的出版工作仍然非常強勁，並且最近在 PUBG LITE 方面得到了體現。

At the same time, we also have a very strong pipeline of games coming in from our right of first refusal arrangement with Tencent, again, culminating in Speed Drifters.

同時，我們也透過與騰訊的優先購買權安排，擁有非常強大的遊戲管道，其中《極速漂流》的巔峰之作。

I would say that in combination to all of these different growth factors, we also have our own self-development studio.

我想說的是，結合所有這些不同的成長因素，我們也有自己的自我發展工作室。

In terms of 200 developers that we have in our studio, all of them are continuing to work, not just in terms of building new content for Free Fire, but also they are experimenting with new genres, new features, new game titles.

就我們工作室的 200 名開發人員而言，他們都在繼續工作，不僅為《Free Fire》建立新內容，而且還在嘗試新類型、新功能、新遊戲。

So we're quite optimistic about the fact that we continue to have a very robust pipeline that will seal growth looking forward.

因此，我們對這樣一個事實非常樂觀：我們將繼續擁有非常強大的管道，這將推動未來的成長。

If we think about -- shifting gears to the E-commerce side of things, entire GMV guidance probably -- you're right that in terms of the way how we've chosen to guide in 2019, we're focusing very much in terms of adjusted revenues and we point better picture of landing within $630 million to $660 million for the year.

如果我們考慮——將重點轉向電子商務方面，可能是整個 GMV 指導——你是對的，就我們選擇的 2019 年指導方式而言，我們非常關注就調整後的收入而言，我們認為今年的營收將在6.3 億美元至6.6 億美元之間。

We believe that that's a pretty direct indicator of overall performance of E-commerce businesses.

我們認為這是電子商務業務整體績效的一個非常直接的指標。

As a result, we've chosen to guide on that.

因此，我們選擇對此進行指導。

We probably won't provide guidance in regard to GMV per se, but we continue to report it just as we have during this quarter.

我們可能不會提供有關 GMV 本身的指導，但我們會像本季一樣繼續報告。

Unfortunately, we can't dive too much into the specific nuances of each market.

不幸的是，我們無法深入研究每個市場的具體細微差別。

But suffice it to say we are seeing continued strong robust results in terms of Indonesia.

但只要說我們看到印尼持續強勁的業績就足夠了。

We actually on previous call you might recall that we claimed that -- we believed we were the market leader in Indonesia by virtue of our 700,000 orders per day on average.

事實上，您可能還記得，在先前的電話會議上，我們聲稱——我們相信我們是印尼的市場領導者，因為我們平均每天有 70 萬個訂單。

And what we've done since then is we've built on that leadership position and closed in at 83.8 million orders in the fourth quarter or an average of 900,000 orders per day.

從那時起，我們所做的就是鞏固這一領先地位，並在第四季度完成了 8,380 萬份訂單，即平均每天 90 萬份訂單。

For 12.12, during the December 12 festival, we actually saw 5.4 million orders coming in from Indonesia alone in that single day.

12.12，在 12 月 12 日的節日期間，我們實際上看到單單來自印尼的訂單就達到了 540 萬份。

So I think we're pleased here to say and we hope you agree that not only are we the leader in Indonesia, but we've also built on that lead quite substantially.

因此，我認為我們很高興在這裡說，我們希望您同意我們不僅是印尼的領導者，而且我們還在這一領先地位的基礎上取得了很大的進步。

Can I follow up just quickly on the Digital Entertainment guidance?

我可以快速跟進數位娛樂指南嗎？

So is that fair to interpret correctly from your comment just now that you have baked in PUBG LITE and also some new games that you are planning in the rest of the year from the Tencent portfolio?

那麼，從你剛才的評論中正確解釋你已經製作了《PUBG LITE》以及你計劃在今年餘下時間從騰訊投資組合中推出的一些新遊戲，這公平嗎？

Yes, it is correct Alicia.

是的，這是正確的艾莉西亞。

It's pretty much a holistic view of the performance of our Digital Entertainment efforts.

這幾乎是我們數位娛樂工作績效的整體視圖。

And our next questioner today will be Mike Olson with Piper Jaffray.

今天我們的下一位提問者將是 Piper Jaffray 的 Mike Olson。

I was wondering if there are any additional details you can share about 2019 profitability expectations?

我想知道您是否可以分享更多有關 2019 年盈利預期的細節？

For example, just from a high level, are your early thoughts on EBITDA for the year -- for the EBITDA loss to improve or worsen in 2019 compared to 2018?

例如，從較高的層面來看，您對今年 EBITDA 的早期想法是——與 2018 年相比，2019 年 EBITDA 損失是改善還是惡化？

And then, when could we potentially expect additional self-developed titles?

那麼，我們什麼時候可以期待更多的自主開發遊戲呢？

I'm sure you're really focusing resources on Free Fire at this point.

我確信您此時確實將資源集中在 Free Fire 上。

But can you provide any thoughts on the pipeline for self-developed titles like will what see potentially see one new self-developed title in 2019 or is that more of a 2020 event?

但您能否就自主開發遊戲的發展方向提供一些想法，例如 2019 年是否會出現一款新的自主開發遊戲，或者這更像是 2020 年的事件？

Great.

偉大的。

Thanks for your questions.

感謝您的提問。

So, let's discuss first in terms of profitability for 2019.

那麼，我們先討論2019年的獲利能力。

So what we have observed is really that on terms of the Shopee front of things, sales and marketing has really declined, like coming in from like 8.5% as a percentage of GMV a year ago to 5.7% in the third quarter of 2018 to 5.4% most recently in the fourth quarter of 2018.

因此，我們觀察到，就 Shopee 而言，銷售和行銷確實有所下降，從一年前佔 GMV 的 8.5％ 下降到 2018 年第三季度的 5.7％ 至 5.4％最近一次是在2018 年第四季度。

At the same time, we see the trend effect on the other side of things.

同時，我們也看到了趨勢效應的另一面。

We've seen adjusted revenues as a percentage of GMV really rose to 3.7% in the fourth quarter.

我們看到第四季調整後的營收佔 GMV 的百分比確實上升至 3.7%。

So we're seeing a narrowing in terms of both lines coming to intersect.

因此，我們看到兩條線相交的範圍正在縮小。

And while we can't paint a picture with regards to precisely when the Shopee business will achieve breakeven, I think Taiwan case study actually painted pretty good picture.

雖然我們無法準確描繪 Shopee 業務何時實現盈虧平衡，但我認為台灣的案例研究實際上描繪了相當不錯的畫面。

When we said that you can see the results really in terms of our Taiwan -- the successful execution of the Shopee strategy in Taiwan, specifically when it was the first market where we started to monetize about 2 years ago and when we mentioned earlier that we expect Shopee to record a positive quarterly adjusted EBITDA before the allocation of HQ costs, for the first time -- for the first -- in the first quarter of 2019.

當我們說你可以在我們台灣看到真正的結果時——在台灣成功執行 Shopee 戰略，特別是當它是我們大約 2 年前開始貨幣化的第一個市場時，以及當我們之前提到我們預計Shopee 將在2019 年第一季首次在分配總部成本之前錄得正的季度調整後EBITDA。

So we do believe that the greater trends of deeper monetization, lowering of shipping subsidies and sales and marketing expenses that we are witnessing in Taiwan, we're actually seeing a lot of that echo out into the other markets as well.

因此，我們確實相信，我們在台灣看到的更深層次的貨幣化、降低運輸補貼以及銷售和行銷費用的更大趨勢，我們實際上也看到了許多其他市場的迴響。

So we're quite pleased and positive about that.

所以我們對此感到非常高興和積極。

In terms of shifting gears to Garena, in terms of self-developed titles, it's pretty early to tell and we don't disclose our game pipeline for competitive reasons.

就轉向 G​​arena 而言，就自主開發的遊戲而言，現在下結論還為時過早，出於競爭原因，我們不會透露我們的遊戲管道。

But needless to say, you can be assured that we are hard at work in terms of trying to develop new genres, new titles, and new features for the future.

但不用說，您可以放心，我們正在努力為未來開發新類型、新標題和新功能。

And our next questioner today will be Varun Ahuja with Credit Suisse, Singapore.

今天我們的下一位提問者是新加坡瑞士信貸銀行的 Varun Ahuja。

First, I just want to -- on the Digital Entertainment, can you provide little bit color on the margin front?

首先，我只想——在數位娛樂方面，你能在邊緣方面提供一些顏色嗎？

Because the fourth quarter is -- looks pretty strong on margin and first quarter you're guiding for much better margin than the fourth quarter.

因為第四季的利潤率看起來相當強勁，而且第一季的利潤率比第四季好得多。

So for full year how should we think about -- because your revenue guidance on Digital Entertainment is very strong, so how should we think about the margin profile any color will be helpful.

因此，對於我們應該如何考慮全年 - 因為您對數位娛樂的收入指導非常強勁，所以我們應該如何考慮利潤概況任何顏色都會有所幫助。

Secondly, in terms of guidance for E-commerce, can you provide little bit color, what -- how much is product revenue?

其次，在電子商務方面的指導方面，您能否提供一些信息，產品收入是多少？

How much is marketplace revenue that you're looking at in the guidance for the revenue for E-commerce business?

您在電子商務業務收入指南中看到的市場收入是多少？

And if you look at your sales and marketing, you had mentioned that the absolute amount for the shipping subsidies have come off, but -- for the fourth quarter.

如果你看看你的銷售和行銷，你會提到第四季度的運輸補貼的絕對金額已經減少。

But if you look at on a quarter-on-quarter basis, the sales and marketing has increased.

但如果你按季度來看，銷售和行銷都有增加。

So it means you're spending in somewhere else, some other promotions and stuff.

所以這意味著你在其他地方、其他促銷活動和其他東西上花錢。

So I just wanted to understand how much of the sales and marketing in fourth quarter is free shipping or the subsidies on shipping front?

所以我只是想了解第四季的銷售和行銷有多少是免費送貨或運輸方面的補貼？

As a percentage, is it coming off, while the other expenses are going up?

從百分比來看，它是否會下降，而其他費用卻在上升？

So wanting to understand that thing.

所以很想了解那件事。

Then the number fourth is can you talk a little bit about the fundraising if you may have to put in for Shopee.

那麼第四個是如果你可能需要為Shopee投入資金，你能談談籌款的事情嗎？

I understand there were last year comments being made that you may look at rising at the Shopee level.

據我所知，去年有評論稱您可能會考慮提升 Shopee 的水平。

So given you're burning -- not burning, you're investing cash every quarter, which may not last beyond 2019, so any plans on that front will be helpful.

因此，考慮到你正在燒錢——而不是燒錢，你每個季度都會投入現金，這可能不會持續到 2019 年之後，所以這方面的任何計劃都會有所幫助。

Thanks, Varun.

謝謝，瓦倫。

Good to speaking with you.

很高興與你交談。

So let's take it from the top.

那麼讓我們從頂部開始吧。

In terms of your first question on margins, yes, you're right.

就您關於利潤的第一個問題而言，是的，您是對的。

In terms of the EBITDA margins on the Digital Entertainment side of things, third quarter we had a 37.2% that has improved pretty substantially to 45.5% in the fourth quarter.

就數位娛樂的 EBITDA 利潤率而言，第三季我們的利潤率為 37.2%，第四季已大幅提高至 45.5%。

In terms of just giving more color there.

就只是在那裡提供更多顏色而言。

It's really a combination of we would say 3 factors.

這其實是三個因素的結合。

First of all, just overall strong top line growth coming in from Free Fire as well as some of the other game titles.

首先，《Free Fire》以及其他一些遊戲的整體營收成長強勁。

There is also the fact that a self-developed games, so in this case, Free Fire accounted for a greater share of revenue and that has led to an improvement in terms of EBITDA margins.

還有一個事實是，自主開發的遊戲，因此在這種情況下，Free Fire 佔據了更大的收入份額，這導致了 EBITDA 利潤率的改善。

And of course, we've also seen greater efficiency in terms of our marketing efforts and that helps just to stretch the dollar.

當然，我們也看到行銷工作的效率提高了，這有助於擴大收入。

That's probably the color that we can provide in terms of EBITDA margins.

這可能是我們可以提供的 EBITDA 利潤率的顏色。

In terms of E-commerce guidance, unfortunately we probably cannot breakdown a little into any more granularity with regard to the guidance in terms of marketplace product -- versus product revenue.

就電子商務指導而言，不幸的是，我們可能無法將市場產品與產品收入的指導細分為更細微。

But that's something that we disclose in our earnings.

但這是我們在收益中披露的內容。

So if we look at the composition of the fourth quarter, particularly, if we look at where we ended up at $126.9 million, roughly $87.6 million was marketplace and roughly 39.3% was product.

因此，如果我們看一下第四季度的組成，特別是如果我們看一下最終的 1.269 億美元，就會發現大約 8760 萬美元是市場收入，大約 39.3% 是產品收入。

In terms of the sales and marketing, let me try to contextualize and frame your question.

在銷售和行銷方面，讓我嘗試將您的問題置於情境中並提出框架。

So if we look at it from a big picture kind of view, sales and marketing overall as a percentage of GMV fell from 5.7% in the previous quarter to 5.4% in the fourth quarter.

因此，如果我們從大的角度來看，銷售和行銷總體佔 GMV 的百分比從上一季的 5.7% 下降到第四季的 5.4%。

And something else that we said with the sales and marketing, in terms of absolute dollars, we expect that to trend down this year.

我們在銷售和行銷方面所說的其他事情，就絕對美元而言，我們預計今年會呈下降趨勢。

And part of our ability to do that really stems from the fact that we are now the market leader.

我們之所以能夠做到這一點，部分原因在於我們現在是市場領導者。

We are continuing to get outsized benefits from the flywheel effects where more and more buyers and sellers flock to the Shopee ecosystem.

我們繼續從飛輪效應中獲得巨大的利益，越來越多的買家和賣家湧入 Shopee 生態系統。

What this means essentially is that we get a lot in terms of organic user growth.

這本質上意味著我們在有機用戶成長方面獲得了很多。

So we don't actually need to continue to invest as much in terms of sales and marketing in order to post very robust growth rate.

因此，我們實際上不需要繼續在銷售和行銷方面進行大量投資來實現非常強勁的成長率。

One thing that you pointed out particularly on this question was that shipping subsidies.

您在這個問題上特別指出的一件事是航運補貼。

What we'll say here is that shipping subsidies have really fallen in terms of absolute dollar terms if we look at the fourth question relative to the third quarter.

我們在這裡要說的是，如果我們看相對於第三季的第四個問題，那麼從絕對美元計算來看，航運補貼確實有所下降。

But keep in mind that, although we've pulled that back, at the same time GMV grew by 27% quarter-on-quarter and orders grew by 31% quarter-on-quarter.

但請記住，儘管我們已經收回了這一數字，但與此同時，GMV 環比增長了 27%，訂單環比增長了 31%。

This really proves that we can grow with increasing efficiency.

這確實證明我們可以隨著效率的提升而成長。

And you are right, we have redeployed some of that budget towards more discretionary type of marketing activities.

你是對的，我們已將部分預算重新部署到更自由裁量的行銷活動上。

But over time what we found is that initially when buyers are a bit less well-acquainted with any particular E-commerce platform, perhaps free shipping or subsidized shipping becomes an important tool for them to try out the platform for the first time.

但隨著時間的推移，我們發現，最初當買家對任何特定的電子商務平台不太熟悉時，也許免費送貨或補貼送貨成為他們第一次嘗試該平台的重要工具。

But when you are in a position where Shopee is where -- people are very familiar with you, then other factors become very important.

但當你處於 Shopee 所在的位置時——人們對你非常熟悉，那麼其他因素就變得非常重要。

Things like product assortment, ease of discovery, deeper engagement, and very high quality fulfillment and customer service, all of which are pretty much hallmarks of the Shopee experience.

產品分類、易於發現、更深入的參與以及非常高品質的履行和客戶服務等，所有這些都是 Shopee 體驗的標誌。

And then finally, in terms of your question on fundraising, as of the end of the fourth quarter, we had overall $1 billion in cash and cash equivalents.

最後，關於籌款問題，截至第四季末，我們總共擁有 10 億美元的現金和現金等價物。

We're very encouraged by our most recent results, in terms of Shopee.

我們對 Shopee 的最新成果感到非常鼓舞。

At the same time, we also have Garena which continues to exceed our expectations.

同時，我們還有持續超出我們預期的Garena。

We have great accomplishment on the adjusted revenue front with over $661 million in 2018.

2018 年，我們在調整後收入方面取得了超過 6.61 億美元的巨大成就。

We think all of this puts us in a very, very strong position.

我們認為所有這些都使我們處於非常非常有利的地位。

At the same time, as a management team, we are very committed to growing our business and market leadership in what we think is a very large and attractive market opportunity.

同時，作為一個管理團隊，我們非常致力於在我們認為非常巨大且有吸引力的市場機會中發展我們的業務和市場領導地位。

To that end, we will continue to evaluate our fundraising options and may access the capital markets as appropriate.

為此，我們將繼續評估我們的籌款方案，並可能酌情進入資本市場。

And our next questioner today will be Conrad Werner with Macquarie.

今天我們的下一位提問者將是麥格理的康拉德維爾納。

It's Conrad from Macquarie.

我是麥格理的康拉德。

First question is just, in the past -- and I'm sorry, if you've already disclosed this, you also mentioned what percentage of adjusted revenues in the games business was directly coming from Free Fire.

第一個問題是，在過去，我很抱歉，如果您已經披露了這一點，您還提到了遊戲業務調整後收入的百分比直接來自 Free Fire。

So I'm wondering if you could provide that again.

所以我想知道你是否可以再次提供。

And then just to follow up on some of the previous questions.

然後跟進之前的一些問題。

I mean, everything in the results looks great.

我的意思是，結果中的一切看起來都很棒。

I think the market would just still have that one outstanding question around the cadence of EBITDA losses in the E-commerce business.

我認為市場仍然存在一個懸而未決的問題，即電子商務業務 EBITDA 虧損的頻率。

Would it be fair to say that the fourth quarter EBITDA loss might represent a high watermark going forward on a quarterly basis?

可以公平地說，第四季 EBITDA 損失可能代表著季度基礎上的高水位線嗎？

Given all of the positive revenue trends that you're calling for plus some of the efficiency that we're seeing on the sales and marketing side, at least in terms of the shipping subsidies?

考慮到您所呼籲的所有積極的收入趨勢，加上我們在銷售和行銷方面看到的一些效率，至少在運輸補貼方面？

I think any color around that would be very useful.

我認為周圍的任何顏色都會非常有用。

And tied to that, is there any seasonality to expect in the business?

與此相關的是，該業務是否有季節性？

I mean, you had a couple of big sales events in the fourth quarter for the E-commerce business, they were very successful.

我的意思是，第四季度電子商務業務舉辦了幾場大型銷售活動，它們非常成功。

Does that sort of impact the quarter-over-quarter trends in the first quarter for E-commerce?

這是否會影響電子商務第一季的環比趨勢？

And then just lastly on the shareholder's equity, is there a plan or a need from your perspective to move that more into a positive number over the course of 2019 and how would you do that?

最後，關於股東權益，從您的角度來看，是否有計劃或需要在 2019 年將其進一步變為正數？您將如何做到這一點？

Conrad, thanks for your question.

康拉德，謝謝你的問題。

So first question is on the percentage of adjusted revenue from Free Fire, yes, we did disclose this.

所以第一個問題是關於《Free Fire》調整後收入的百分比，是的，我們確實揭露了這一點。

We said that for a fourth quarter it accounted for 44 -- excuse me, 44.5% of adjusted revenue --

我們說第四季它佔調整後收入的 44%——對不起，是 44.5%——

Sorry, I missed that.

抱歉，我錯過了。

Yes.

是的。

That's great.

那太棒了。

So the second one in terms of cadence of EBITDA losses, would it be fair to say fourth quarter EBITDA losses represents a watermark in terms of EBITDA losses?

那麼，就 EBITDA 損失的節奏而言，第二個是公平地說第四季度 EBITDA 損失代表了 EBITDA 損失的水印嗎？

I think that's -- it's fair to characterize it that way.

我認為這樣描述它是公平的。

If we think about what we've disclosed, we kind of said that we expect overall sales and marketing in terms of absolute dollars to continue to trend down starting from this year.

如果我們考慮我們所揭露的內容，我們可以說我們預計從今年開始，以絕對美元計算的整體銷售和行銷將繼續呈下降趨勢。

So I think that that characterization is accurate.

所以我認為這種描述是準確的。

The third question on seasonality.

第三個問題關於季節性。

I think that's true.

我認為這是真的。

We have seen quite an outsized response in terms of great consumer demand leading in from our 10.10, 11.11 and 12.12 festivals and so like there is some price seasonality in the E-commerce business just as there is as well for the games business.

我們看到 10.10、11.11 和 12.12 節日帶來的巨大消費者需求產生了相當大的反應，因此電子商務業務存在一定的價格季節性，就像遊戲業務一樣。

Then shareholder's equity question perhaps, I will let Tony weigh on this.

那麼股東權益的問題也許，我會讓托尼來權衡。

So you well pointed out.

所以你指出得很好。

And as shared by Howard earlier, we have $1 billion on the balance sheet in cash.

正如霍華德早些時候分享的那樣，我們的資產負債表上有 10 億美元的現金。

And we have seen very strong performance in our game business and also strong pickup in our E-commerce business as well.

我們的遊戲業務表現非常強勁，電子商務業務也強勁回升。

In the meanwhile, as we shared, we're open-minded about the option and closely monitoring the market positions.

同時，正如我們所分享的，我們對這一選擇持開放態度，並密切關注市場頭寸。

Maybe just to follow up on the seasonality question.

也許只是為了跟進季節性問題。

I mean, given the strong just organic growth in this business even with the seasonality, should we still expect the revenue metrics to be up sequentially in the first quarter just by not as much or is there a chance that we could see them come down sequentially before they start rising again over the course of 2019?

我的意思是，考慮到該業務的強勁有機增長，即使存在季節性因素，我們是否仍然預計第一季的收入指標將連續上升，幅度不會那麼大，或者我們是否有可能看到它們連續下降在2019 年再次開始上漲之前？

The expectation is that it will rise.

預期它會上漲。

And that is also reflected in our adjusted revenue guidance for the year.

這也反映在我們調整後的今年營收指引中。

And that applies to the first quarter as well?

這也適用於第一季嗎？

That's right.

這是正確的。

(Operator Instructions) Our next questioner will be John Blackledge with Cowen.

（操作員說明）我們的下一位提問者將是約翰·布萊克利奇和考恩​​。

This is [Bill] on for John.

這是[比爾]為約翰代言的。

I had a couple if I could.

如果可以的話我有一對。

Could you just tell us little bit more about what you see as the drivers of GMV and monetization in the first quarter?

您能否告訴我們更多關於您認為第一季 GMV 和貨幣化驅動因素的資訊？

And then just a little bit more color on the logistic services and value-added services, how those performed versus your expectations and what do you kind of see as the long term view for those businesses over the next few years?

然後對物流服務和增值服務進行更多的介紹，這些服務的表現與您的預期相比如何，以及您對這些業務未來幾年的長期前景有何看法？

Hey, Bill thanks for your question.

嘿，比爾，謝謝你的問題。

So in terms of the E-commerce side of things, drivers of GMV and monetization, couple of things to say here.

因此，就電子商務方面、GMV 和貨幣化的驅動因素而言，這裡有幾件事要說。

I think that when I was asked on the previous call what accounted for the great GMV acceleration in third quarter, I kind of said that Shopee is really coming to its own.

我認為，當我在之前的電話會議上被問到第三季 GMV 大幅增長的原因是什麼時，我有點說 Shopee 真的正在崛起。

I think, #1 E-commerce platform in the region.

我認為，該地區排名第一的電子商務平台。

And I think that's more true today, even as short as 3 months ago.

我認為今天更是如此，即使在短短 3 個月前。

If we just look at the fact moving from $0 of GMV to over $10 billion of GMV in the 3 year timeframe, our success in terms of Indonesia where we had 900,000 orders per day and when App Annie said and has declared that we were most downloaded app in the shopping category in Southeast Asia and Taiwan for the entire of 2018.

如果我們只看一下在3 年內從0 美元的GMV 上升到超過100 億美元的GMV 的事實，我們在印度尼西亞取得了成功，我們每天有900,000 個訂單，而且App Annie 曾說過並宣稱我們的下載量是最多的2018 年全年東南亞和台灣購物類別應用程式。

I think all of these provides really strong evidence that we are the #1 player in Indonesia, in Taiwan and the region as a whole.

我認為所有這些都提供了非常有力的證據，證明我們是印尼、台灣甚至整個地區的第一大玩家。

If we think about our ability to continue to monetize, there are number key drivers behind this growth.

如果我們考慮一下我們繼續貨幣化的能力，就會發現這種成長背後有許多關鍵驅動因素。

First of all, Shopee continues to experience robust platform growth and we've expanded our leadership position across the region and market-by-market.

首先，Shopee 的平台持續強勁成長，我們在整個地區和各個市場的領導地位也不斷擴大。

Secondly, we're observing a deepening of user engagement on the platform as we continue to enhance our service offerings to both buyers and sellers, being through a wide assortment of our service offering as well as innovative gamification elements, standard tools and value-added series.

其次，我們觀察到平台上用戶參與度的加深，因為我們透過各種各樣的服務以及創新的遊戲化元素、標準工具和增值，繼續增強為買家和賣家提供的服務。系列。

Thirdly, we're currently rolling a fuller spectrum of monetization avenues since January this year and we plan to continue rolling out even more of these over the course of 2019.

第三，自今年 1 月以來，我們目前正在推出更全面的貨幣化途徑，並計劃在 2019 年繼續推出更多這些途徑。

For example, we've recently rolled out commissions for more sellers in Thailand and Indonesia and we've rolled out handling fees across multiple markets.

例如，我們最近向泰國和印尼的更多賣家推出了佣金，並在多個市場推出了手續費。

So looking ahead, we continue to grow -- focus on growing with efficiency on the E-commerce front.

因此，展望未來，我們將持續成長—專注於電子商務領域的高效成長。

We will leverage our organic user acquisitions opportunities and we'll ramp up monetization as we deepen our engagement with both buyers and sellers.

我們將利用我們的有機用戶獲取機會，並隨著我們加深與買家和賣家的接觸而提高貨幣化程度。

In terms of your question on VAS, it's pretty much performing in line with our expectations.

就您關於增值服務的問題而言，它的表現與我們的預期基本一致。

As you can imagine, it is -- we're really solving a fundamental need here that has been unaddressed by -- largely its unaddressed by any sort of player in our region.

正如你可以想像的那樣，我們確實正在解決這裡的一個基本需求，而我們地區的任何類型的參與者在很大程度上都沒有解決這個需求。

So you can imagine that there's been outsized demand coming in for those value-added services that we provide.

因此，您可以想像，對我們提供的加值服務有著巨大的需求。

(Operator Instructions) And our next questioner will be Andrew Orchard with Nomura.

（操作員說明）我們的下一位提問者將是野村證券的安德魯·奧查德（Andrew Orchard）。

Question on E-commerce, can you us some color on what percentage of your orders is from organic lead generation and how much is coming from affiliate websites such as [Priza] or other websites?

關於電子商務的問題，您能否透露一下您的訂單中有多少百分比來自有機潛在客戶生成，有多少來自聯盟網站（例如 [Priza] 或其他網站）？

And then on the gaming front, can you give us some color on where you expect this between self-developed and non-self developed games to be eventually?

然後在遊戲方面，您能給我們一些關於您對自主開發遊戲和非自主開發遊戲的最終預期結果嗎？

Maybe not necessarily for this year, but [2018] -- at some time?

也許不一定是今年，但[2018]——某個時候？

Great.

偉大的。

Thanks, Andrew.

謝謝，安德魯。

So we probably can't provide more color in terms of the exact split, in terms of orders.

因此，我們可能無法在精確的分割和訂單方面提供更多的顏色。

What we will say is that we've got -- where we see in terms of the overall trajectory of our orders, we've seen acceleration in terms of orders and going from zero to more than 600 million orders in a timeframe of 3 years we think it's a pretty remarkable accomplishment.

我們要說的是，從訂單的整體軌跡來看，我們看到訂單量正在加速成長，在 3 年內從零增加到超過 6 億個訂單我們認為這是一項非常了不起的成就。

On the other hand, when we talk about the split between self-developed and non-self developed games, recall, during one of the previous calls we actually did paint a picture where we said about 50% of that's going to come in from self-developed games and 50% of that is going to be published.

另一方面，當我們談論自主開發遊戲和非自主開發遊戲之間的劃分時，回想一下，在之前的一次電話會議中，我們實際上確實描繪了一幅圖畫，我們說其中大約50% 將來自自主開發- 開發遊戲，其中 50% 將發布。

What we've seen on Free Fire front particularly is that now, Free Fire already accounts for 44.5% of our self-developed assets for the fourth quarter.

特別是我們在Free Fire方面看到的是，現在Free Fire已經占到我們第四季自主開發資產的44.5%。

So we're well on our way to hit those targets.

因此，我們正在順利實現這些目標。

Do you think that it might exceed that more significantly as we get to stage where it might be 60:40 or 65:35?

您認為當我們達到 60:40 或 65:35 的階段時，它可能會更顯著地超出這個範圍嗎？

We do think that's possible and we wouldn't necessarily say that that's negative thing.

我們確實認為這是可能的，而且我們不一定會說這是負面的事情。

Given the fact that it is our self-developed title, it does lead to a better EBITDA margins for the business.

鑑於這是我們自主開發的遊戲，它確實為業務帶來了更好的 EBITDA 利潤率。

And we've seen how that has been a real -- has really resonated with a global audience.

我們已經看到它是如何真正引起全球觀眾的共鳴。

We're seeing how it's done really well, not just in our core market, but also across all sorts of different markets such as India where it's continuing to get a very strong user base.

我們看到它的表現非常好，不僅在我們的核心市場，而且在各種不同的市場，例如印度，它繼續獲得非常強大的用戶群。

And our next questioner today will be Conrad Werner with Macquarie.

今天我們的下一位提問者將是麥格理的康拉德維爾納。

Sorry for the follow-up, but just to follow up on that previous question around the additional color around the monetization in E-commerce is it fair to say that the guidance for 2019 is still -- does not assume much in terms of commissions outside of the MAU business?

很抱歉跟進，但只是為了跟進之前關於電子商務貨幣化的額外色彩的問題，可以公平地說 2019 年的指導仍然是 - 沒有對外部佣金做出太多假設MAU 業務的情況如何？

In other words, the commissions for more of the marketplace business would be sort of something that happens in 2020 and beyond or are you already assuming some of that in 2019?

換句話說，更多市場業務的佣金將在 2020 年及以後發生，還是您已經假設其中一部分會在 2019 年發生？

Yes.

是的。

Thanks, Conrad.

謝謝，康拉德。

So we are assuming some of that's occurring.

所以我們假設其中一些正在發生。

So it will be different levers that we activate in different markets.

因此，我們在不同的市場啟動不同的槓桿。

We have to almost take it on a market-by-market basis.

我們幾乎必須根據每個市場來對待它。

But what you're seeing in terms of the guidance for 2019 adjusted revenues for E-commerce, that's all-in holistic view in terms of all the different monetization levels that we will pursue for the year.

但是，您所看到的 2019 年電子商務調整後收入指導，是我們今年將追求的所有不同貨幣化水平的整體視圖。

And sorry again, if I missed this before, was there a split provided between PC and mobile adjusted revenues in the release or is it possible to get on this call?

再次抱歉，如果我之前錯過了這一點，那麼發布中是否提供了 PC 和行動調整收入之間的分配，或者是否有可能參加這次電話會議？

Yes, it was provided.

是的，已經提供了。

So yes we can --

所以是的，我們可以——

I'll look it up then.

那我就查一下。

Yes.

是的。

It was just 85.1% -- just for your quick reference.

只有 85.1%——僅供您快速參考。

Thanks.

謝謝。

I was late to look at the release.

我遲到了才看發布。

Thank you.

謝謝。

And our next questioner today will be Miang Chuen Koh with Goldman Sachs.

今天我們的下一位提問者是高盛的 Miang Chuen Koh。

Couple follow up as well.

夫妻倆也跟進。

On Free Fire, can you elaborate a bit more on what's sort of monetization tools you actually deployed in fourth quarter and how should we think about those monetization tools this year as well?

關於 Free Fire，您能否詳細說明您在第四季度實際部署的貨幣化工具類型以及我們今年應該如何考慮這些貨幣化工具？

I know you mentioned, of course deepening that, but I just would like some specifics.

我知道你有提到過，當然要加深這一點，但我只是想了解一些細節。

And as you go into orders or see great success in orders global markets, Latin America, et cetera.

當您進入訂單或看到訂單在全球市場、拉丁美洲等地取得巨大成功時。

Would you be expanding or adding headcount in those areas as well?

您是否也會在這些領域擴大或增加員工人數？

And are there other geographies that you see similar opportunities beside Latin America?

除了拉丁美洲之外，您是否在其他地區也看到了類似的機會？

And then finally, should we expect a few more games from Tencent, I guess, this year as well?

最後，我想今年我們是否應該期待騰訊推出更多遊戲？

All right.

好的。

Great.

偉大的。

Thanks, MC.

謝謝，MC。

So first question, terms of monetization tools deployed the fourth quarter on the Free Fire front.

第一個問題是，第四季在 Free Fire 方面部署了貨幣化工具。

Recall that the -- one of the most effective tools in terms of us converting free users to paying users has really been the subscription process that's pushed out.

回想一下，將免費用戶轉變為付費用戶的最有效工具之一實際上是推出的訂閱流程。

So this subscription process, they're very affordable.

所以這個訂閱過程，他們是非常實惠的。

And in terms of like the transition from being a free user going a paying user, it's very, very low ticket being about an average of U.S. $5 per month.

就從免費用戶到付費用戶的轉變而言，票價非常非常低，平均每月約 5 美元。

It needs a lot of repeat behavior in terms of being a subscription type of tool and it gives you access to a whole host of content you would otherwise get as a free user, so that's been a effective tool.

作為訂閱類型的工具，它需要大量的重複行為，並且它使您可以訪問原本作為免費用戶可以獲得的全部內容，因此這是一個有效的工具。

And once individuals start investing in the game, then there's a higher propensity for them to participate in other avenues such as buying costumes and skins and so on.

一旦個人開始投資遊戲，他們就會更有可能參與其他途徑，例如購買服裝和皮膚等。

One thing that I will mention is that the subscription process are also team based, so we tend to push out monthly sort of teams around the subscription process and that leads to a lot of opportunities for deeper localization and engagement with users.

我要提到的一件事是，訂閱流程也是基於團隊的，因此我們傾向於圍繞訂閱流程推出每月的團隊，這為更深入的在地化和與用戶互動帶來了許多機會。

In terms of success in global markets and if we're seeing any sort of restructuring, I think questions -- your next couple of questions are kind of interrelated.

就全球市場的成功而言，如果我們看到任何形式的重組，我認為問題 - 接下來的幾個問題是相互關聯的。

So we will say that we've seen lots of great success in terms of our initial foray into Latin America.

因此，我們可以說，我們在首次進軍拉丁美洲時已經取得了巨大的成功。

But at the same time, we are seeing great user traction and growth numbers in markets like India, Russia, and Turkey.

但同時，我們在印度、俄羅斯和土耳其等市場看到了龐大的用戶吸引力和成長數量。

According to App Annie, throughout the month of January, Free Fire was consistently ranked as the top 3 grossing action game on the Google Play Store in India and Russia and within the top 6 grossing action game on the Google Play Store in Turkey.

根據 App Annie 的數據，整個 1 月份，《Free Fire》在印度和俄羅斯的 Google Play 商店中一直位居最暢銷動作遊戲前 3 名，在土耳其的 Google Play 商店中名列前 6 名。

So we believe that Free Fire's unique position as a premium battle royale title, which is optimized for emerging market users, has a lot of again to achieve popularity and success in other global markets as well.

因此，我們相信，《Free Fire》作為一款針對新興市場用戶進行了優化的優質大逃殺遊戲的獨特地位，也將在其他全球市場上再次獲得普及和成功。

Does this lead to investment in terms of on-the-ground infrastructure and personnel?

這是否會帶來實地基礎設施和人員的投資？

Sure, we will make those investments in order to make sure that we deliver the best game experience to our users.

當然，我們將進行這些投資，以確保為用戶提供最佳的遊戲體驗。

Yes, and then well, we expect more Tencent games as well besides Speed Drifters for the remainder of the year?

是的，那麼，我們預計今年剩下的時間裡，除了《極速漂流》之外，還會有更多騰訊遊戲？

Sure.

當然。

So I think the short answer to you, stay tuned in terms of our announcements.

因此，我想對您的簡短回答是，請繼續關注我們的公告。

We, obviously, can't speak about our games pipeline.

顯然，我們不能談論我們的遊戲管道。

But we are quite excited about what we see when we look across the Tencent portfolio.

但當我們審視騰訊的投資組合時，我們對所看到的感到非常興奮。

Thank you.

謝謝。

And this will conclude our question and answer session.

我們的問答環節到此結束。

I would now like to turn the conference back over to Howard Soh for any closing remarks.

現在我想將會議轉回霍華德·蘇（Howard Soh）發表閉幕詞。

Well, thank you very much, everyone, for your time.

非常感謝大家抽出寶貴的時間。

We look forward to speaking with you again on the next call.

我們期待在下次通話中再次與您交談。

The conference is now concluded.

會議現已結束。

Thank you for attending today's presentation and you may now disconnect your lines.

感謝您參加今天的演示，您現在可以掛斷電話了。