Sea Ltd (SE) 2019 Q1 法說會逐字稿

Hello, and welcome to the Sea Limited First Quarter 2019 Results Conference Call (Operator Instructions) Please note, this event is being recorded.

您好，歡迎來到 Sea Limited 2019 年第一季度業績電話會議（操作員說明）請注意，此活動正在錄製中。

And now I'll turn the call over to your host today, Yanjun Wang, group Chief Corporate Officer.

現在我將把電話轉給今天的主持人，集團首席企業官王彥軍。

Please go ahead, ma'am.

請繼續，女士。

Thank you.

謝謝你。

Good morning, and good evening, everyone, and welcome to Sea's 2019 First Quarter Earnings Conference Call.

大家早上好，晚上好，歡迎參加 Sea 的 2019 年第一季度收益電話會議。

I am Yanjun Wang, Sea's Group Chief Corporate Officer and General Counsel.

我是Sea's Group 首席企業官兼總法律顧問王彥軍。

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，這些陳述固有地受到風險和不確定性的影響，並且由於我們新聞稿中所述的各種原因，未來可能無法實現。

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

此外，本次電話會議還討論了某些非公認會計準則財務指標，例如調整後的收入和調整後的 EBITDA。

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

我們相信，當這些措施用作對我們的 GAAP 披露的補充時，可以增強我們的投資者對我們主要業務的實際現金流的了解。

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.

有關使用非 GAAP 財務指標以及與最接近的 GAAP 指標對賬的討論，請參閱我們新聞稿中關於非 GAAP 財務指標的部分。

I have here with me Sea's Chairman and Group Chief Executive Officer, Forrest Li; and Group Chief Financial Officer, Tony Hou.

Sea 的董事長兼集團首席執行官 Forrest Li 和我在一起；和集團首席財務官 Tony Hou。

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

Forrest 和 Tony 將分享本季度的戰略和業務更新、運營亮點和財務業績。

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

隨後將進行問答環節，我們歡迎您提出任何問題。

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

有了這個，讓我把電話轉給福雷斯特。

Thanks, Yanjun.

謝謝，燕軍。

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

大家好，感謝您一如既往地加入今天的電話會議。

Building on our very strong performance in 2018, we have kicked off 2019 on an even stronger note with very healthy growth across our businesses.

基於我們在 2018 年的強勁表現，我們以更加強勁的勢頭開啟了 2019 年，我們的業務實現了非常健康的增長。

For Sea as a whole, our adjusted revenue for the quarter was $578.8 million, almost triple that of the same quarter last year.

對於整個 Sea，我們本季度的調整後收入為 5.788 億美元，幾乎是去年同期的三倍。

It is mainly attributable to strong revenue growth of both our digital entertainment and the e-commerce businesses.

這主要歸功於我們的數字娛樂和電子商務業務的強勁收入增長。

Moreover, we saw significant improvement on the bottom line this quarter.

此外，我們看到本季度的利潤顯著改善。

Total adjusted EBITDA was negative $32 million which improved from negative $144.7 million for the first quarter of 2018 and the negative $203.6 million for the fourth quarter of 2018.

調整後的 EBITDA 總額為負 3200 萬美元，高於 2018 年第一季度的負 1.447 億美元和 2018 年第四季度的負 2.036 億美元。

We believe this is a strong indication of the potential profitability of our group businesses.

我們認為，這有力地表明了我們集團業務的潛在盈利能力。

Let's look first at Garena.

讓我們先看看Garena。

Garena had a standout quarter.

加雷納有一個出色的季度。

Adjusted revenue for the digital entertainment business grew 169% year-on-year and 70% quarter-on-quarter to $393.3 million.

數字娛樂業務的調整後收入同比增長 169%，環比增長 70%，達到 3.933 億美元。

Adjusted EBITDA increased 311% year-on-year and 115% quarter-on-quarter to $225.8 million.

調整後的 EBITDA 同比增長 311%，環比增長 115% 至 2.258 億美元。

In addition, adjusted EBITDA margin increased to 57.4% from 37.7% for the first quarter of 2018 and 45.5% for the fourth quarter of 2018.

此外，調整後 EBITDA 利潤率從 2018 年第一季度的 37.7% 和 2018 年第四季度的 45.5% 增加到 57.4%。

The strong results are mainly attributable to the following.

強勁的業績主要歸功於以下幾點。

First, strong user growth.

一是用戶增長強勁。

The number of quarterly active users reached 271.6 million, an increase of 114.4% year-on-year and 25.6% quarter-on-quarter.

季度活躍用戶達到2.716億，同比增長114.4%，環比增長25.6%。

Second, deepening paying user penetration with sustained strong average revenue per paying user.

第二，深化付費用戶滲透，每位付費用戶的平均收入持續強勁。

Our pay ratio reached 7.6% for the first quarter compared to 5.7% for the same period a year ago and 5.5% for the previous quarter.

第一季度我們的薪酬比率達到 7.6%，而去年同期為 5.7%，上一季度為 5.5%。

Third, continued outstanding operating and financial performance of our first self-developed game, Free Fire.

第三，我們的首款自主開發遊戲《Free Fire》的經營和財務表現持續出色。

It contributed significantly to the margin improvement as no developer royalty is payable by us for the title.

它對利潤率的提高做出了重大貢獻，因為我們無需為該標題支付開發者版稅。

We are particularly pleased to see that the key metrics for the digital entertainment business showed healthy growth and improvement in the quarter.

我們特別高興地看到，數字娛樂業務的關鍵指標在本季度顯示出健康的增長和改善。

We believe this is a result of: first, our proven strategy of pushing...

我們相信這是由於：首先，我們行之有效的推動...

(technical difficulty)

（技術難度）

Sorry, we just had some music in the background.

抱歉，我們只是在背景中播放了一些音樂。

Sorry for the interruption.

很抱歉打擾了。

We are pleased -- we are particularly pleased that we see that the key metrics for the digital entertainment business showed healthy growth and improvement in the quarter.

我們很高興——我們特別高興的是，我們看到數字娛樂業務的關鍵指標在本季度顯示出健康的增長和改善。

We believe this is a result of, first, our proven strategies of pushing further into self-development and new markets globally; second, our relentless efforts to keep bringing new and engaging content to our users; third, our constant focus on enhancing game and monetization features based on a deep understanding of local preferences and conditions; and the last but not least, our strong effort in esports and community building.

我們認為，首先，這是我們在全球範圍內進一步推進自我發展和新市場的成熟戰略的結果；其次，我們不斷努力為用戶帶來新的和引人入勝的內容；第三，基於對當地偏好和條件的深入了解，我們始終專注於增強遊戲和貨幣化功能；最後但並非最不重要的一點是，我們在電子競技和社區建設方面的大力努力。

Free Fire is a great example.

Free Fire 就是一個很好的例子。

This smash hit is our first self-developed title.

這個紅極一時是我們的第一個自主開發的標題。

It recently surpassed 450 million registered users and 50 million peak daily active users in over 130 markets globally, making it one of the most popular mobile games in the world.

它最近在全球 130 多個市場超過 4.5 億註冊用戶和 5000 萬峰值每日活躍用戶，使其成為全球最受歡迎的手機遊戲之一。

It was also the second most downloaded mobile game globally across the Apple App Store and the Google Play Store combined in the first quarter according to App Annie.

根據 App Annie 的數據，它也是第一季度 Apple App Store 和 Google Play Store 全球下載量第二多的手機遊戲。

Moreover, we have been working hard to enhance monetization of the game.

此外，我們一直在努力提高遊戲的盈利能力。

We've further localized our offerings and pricing to appeal to users of different markets and introduced a new content that incentivizes users to convert to paying users through personalized discounts and rewards.

我們進一步本地化了我們的產品和定價以吸引不同市場的用戶，並推出了一項新內容，通過個性化的折扣和獎勵激勵用戶轉變為付費用戶。

On the esports front, we held the first Free Fire World Cup and recorded over 27 million online views in total.

在電子競技方面，我們舉辦了第一屆 Free Fire 世界杯，在線觀看量總計超過 2700 萬。

As we speak, we have more than 1 million people globally watching the competitions online at the same time.

正如我們所說，我們在全球有超過 100 萬人同時在線觀看比賽。

For the rest of the year and beyond, we will continue to focus on growing this first self-developed title of ours into a top-ranking and a long-living global franchise.

在今年餘下時間及以後，我們將繼續專注於將我們的第一個自主開發的遊戲發展為頂級且長期存在的全球特許經營權。

At the same time, we're highly focused on bringing high-quality games from top global developers to our users, which also further strengthens our game portfolio and pipeline.

同時，我們高度專注於將來自全球頂級開發商的優質遊戲帶給我們的用戶，這也進一步加強了我們的遊戲組合和管道。

For example, Speed Drifters, the first game we launched early this year under our right of first refusal arrangement with Tencent, has quickly become one of the best performing games in some of our key markets in terms of both user growth and financial performance.

例如，我們在與騰訊的優先購買權安排下於今年年初推出的第一款遊戲 Speed Drifters 已迅速成為我們一些主要市場中用戶增長和財務表現方面表現最好的遊戲之一。

Our effort in this car racing game delivered meaningful contributions to Garena's strong results for the quarter and helped us gain further experience and expertise in more casual genre.

我們在這款賽車遊戲中的努力為 Garena 本季度的強勁業績做出了有意義的貢獻，並幫助我們在更休閒的遊戲類型中獲得了更多的經驗和專業知識。

This can in turn help us further broaden our game portfolio over the long run.

從長遠來看，這反過來又可以幫助我們進一步擴大我們的遊戲組合。

Speed Drifters' success is a great example of why global top IP holders choose to work with Garena because they recognize that we deliver top results.

Speed Drifters 的成功是全球頂級 IP 持有者選擇與 Garena 合作的一個很好的例子，因為他們認識到我們提供了最好的結果。

On that note, in April, we announced that Garena is partnering with Tencent and Activision to publish Call of Duty: Mobile in our core markets in Southeast Asia and Taiwan.

在這方面，我們在 4 月宣布，Garena 正與騰訊和動視合作，在我們的東南亞和台灣核心市場發布《使命召喚：移動》。

Call of Duty: Mobile brings the classic characters and gameplay of this much-loved FPS series to mobile for the first time.

Call of Duty: Mobile 首次將這款備受喜愛的 FPS 系列的經典角色和遊戲玩法帶到移動端。

We'll share more information on this game in due course.

我們將在適當的時候分享更多關於這款遊戲的信息。

Looking to the rest of the year, I believe Garena is in a strong position with an excellent stable of games as well as lots of opportunities for growth for the top games in our portfolio and the pipeline.

展望今年餘下的時間，我相信 Garena 處於強勢地位，擁有出色的穩定遊戲以及我們投資組合和管道中的頂級遊戲的大量增長機會。

Last quarter, we provided adjusted revenue guidance for our digital entertainment business of $1.2 billion to $1.3 billion for the full year of 2019.

上個季度，我們為 2019 年全年的數字娛樂業務提供了 12 億至 13 億美元的調整後收入指引。

This represents 81.5% to 96.7% growth year-on-year, which is a highly ambitious goal for the size of our business by any measure.

這代表了 81.5% 到 96.7% 的同比增長，無論以何種標準衡量，這對於我們的業務規模來說都是一個雄心勃勃的目標。

Still, we are confident that we are well-placed to meet or even beat this ambitious target.

儘管如此，我們相信我們有能力實現甚至超過這個雄心勃勃的目標。

We may choose to revise our full year digital entertainment guidance upwards next quarter when we have more data.

當我們有更多數據時，我們可能會選擇在下個季度向上修改我們的全年數字娛樂指南。

Now we turn to Shopee.

現在我們轉向Shopee。

At the end of 2018, we outlined some very clear objectives for 2019: to continue to capture the growth opportunity ahead, ramp up our monetization efforts and do so with growing efficiency.

在 2018 年底，我們概述了 2019 年的一些非常明確的目標：繼續抓住未來的增長機會，加大我們的貨幣化力度並提高效率。

And I'm pleased to say that in the first quarter, we have delivered across all 3 fronts.

我很高興地說，在第一季度，我們已經在所有三個方面都交付了。

In terms of continuing growth, despite Q1 being a traditionally low season, we recorded a very strong GMV of $3.5 billion.

就持續增長而言，儘管第一季度是傳統的淡季，但我們的 GMV 非常強勁，達到了 35 億美元。

Compared to the same period a year ago, that represents close to 82% growth.

與一年前同期相比，增長接近 82%。

We also recorded strong order numbers of 204 million, an increase of 83% year-on-year.

我們還錄得 2.04 億份強勁訂單，同比增長 83%。

Moreover in Q1, Shopee was the #1 app by downloads in the shopping category across Southeast Asia and Taiwan according to App Annie.

此外，根據 App Annie 的數據，在第一季度，Shopee 是東南亞和台灣購物類別中下載量排名第一的應用程序。

As the market leader, we believe Shopee is capturing an outsized proportion of the market growth.

作為市場領導者，我們相信 Shopee 正在佔據市場增長的巨大比例。

Turning to monetization.

轉向貨幣化。

We are making excellent progress with our efforts to grow Shopee's revenue.

我們在努力增加 Shopee 的收入方面取得了顯著進展。

In the first quarter, adjusted revenue increased 342% year-on-year to $149.2 million.

第一季度，調整後收入同比增長 342% 至 1.492 億美元。

Of this, $102 million was of marketplace revenue which was up 363% year-on-year and 16% quarter-on-quarter.

其中，1.02 億美元是市場收入，同比增長 363%，環比增長 16%。

This reflects the development in each of our marketplace revenue streams, transaction-based fees, advertising and value-added services.

這反映了我們每個市場收入流、基於交易的費用、廣告和增值服務的發展。

The increase in revenue is a result of our platform growth as well as the increasing value of our services to better meet the evolving needs of our users.

收入的增加是由於我們的平台增長以及我們的服務價值不斷增加，以更好地滿足用戶不斷變化的需求。

And finally, let's look at our growth efficiency.

最後，讓我們看看我們的增長效率。

Sales and marketing expenses as a percentage of GMV declined once again to 4.2% in the first quarter.

第一季度銷售和營銷費用佔 GMV 的百分比再次下降至 4.2%。

Moreover, sales and marketing expenses in absolute dollar terms declined quarter-on-quarter for the first time in Q1 even as we continued to experience strong growth across the platform.

此外，儘管我們繼續在整個平台上實現強勁增長，但以絕對美元計算的銷售和營銷費用在第一季度首次環比下降。

As we have noted in previous quarters, we are benefiting from ever-improving economies of scale as we extend our leadership position.

正如我們在前幾個季度所指出的那樣，隨著我們擴大領導地位，我們正受益於不斷提高的規模經濟。

All of the above is well reflected in our solid bottom line performance.

以上所有這些都很好地反映在我們穩健的底線表現中。

Adjusted EBITDA for e-commerce improved by more than $42 million quarter-on-quarter to negative $235.3 million compared to negative $277.5 million in Q4.

電子商務的調整後 EBITDA 環比增長超過 4200 萬美元，至負 2.353 億美元，而第四季度為負 2.775 億美元。

I'm also pleased to note that in Taiwan, Shopee was EBITDA positive before allocating headquarter cost for this quarter.

我也很高興地註意到，在台灣，Shopee 在分配本季度總部成本之前的 EBITDA 為正。

Therefore, we believe Shopee's off to a great start this year, and we'll continue to focus on successfully executing on our stated strategies for e-commerce.

因此，我們相信 Shopee 今年開局良好，我們將繼續專注於成功執行我們既定的電子商務戰略。

In summary, while we are very encouraged by our results for the first quarter, we believe we still have a lot of work ahead to further enrich and enhance our services to users.

總而言之，雖然我們對第一季度的業績感到非常鼓舞，但我們相信我們還有很多工作要做，以進一步豐富和增強我們對用戶的服務。

And we continue to see significant opportunities to capture an outsized share of the biggest growth opportunities in our region's digital economy.

我們繼續看到重要的機會，可以在我們地區數字經濟的最大增長機會中獲得巨大份額。

Therefore, while our strong results for the first quarter demonstrated our potential profitability, we will continue to focus on investing prudently and efficiently in growth.

因此，雖然我們第一季度的強勁業績顯示了我們的潛在盈利能力，但我們將繼續專注於審慎有效地投資於增長。

Moreover, when we make such investment decisions, we will continue to prioritize sustainable growth and the long-term market leadership considerations as opposed to short-term profitability.

此外，當我們做出此類投資決策時，我們將繼續優先考慮可持續增長和長期市場領導地位，而不是短期盈利能力。

This is because, particularly for the e-commerce business, we believe scale and a strong market leadership will translate into long-term profitability.

這是因為，特別是對於電子商務業務，我們相信規模和強大的市場領導地位將轉化為長期盈利能力。

Finally, please allow me to take this opportunity to say a few words about our company's 10th anniversary which we celebrated just on May 8. On behalf of the entire Sea team, I would like to thank our customers, investors, partners and friends for all your support and contributions to this young company's growth over the last decade.

最後，請允許我藉此機會對我們剛剛在 5 月 8 日慶祝的公司成立 10 週年說幾句話。我代表整個 Sea 團隊，感謝我們的客戶、投資者、合作夥伴和朋友們。您對這家年輕公司在過去十年的發展的支持和貢獻。

We began with very humble roots in a shop house in Singapore.

我們在新加坡的一家店屋裡出身卑微。

When we started each of our core businesses, we had no previous experience and had to compete head on with many much larger established, bigger and better-funded players.

當我們開始我們的每一項核心業務時，我們沒有以前的經驗，不得不與許多規模更大、規模更大、資金更雄厚的企業正面競爭。

Our team persevered with passion and conviction.

我們的團隊以激情和信念堅持不懈。

We pursued our own path, and we have become the market leader in the areas we chose to focus on.

我們走自己的路，在我們選擇關注的領域成為市場領導者。

Looking to the decades ahead, we will continue to be humble to serve our customers, investors and partners to the very best of our ability, and we'll strive always to deliver beyond expectations.

展望未來幾十年，我們將繼續謙虛地為我們的客戶、投資者和合作夥伴提供盡我們所能的服務，我們將始終努力實現超出預期的目標。

And I hope we can continue to count on your valued support in the years to come.

我希望我們能夠在未來幾年繼續依靠您的寶貴支持。

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

有了這個，我將邀請託尼分享更多關於財務的信息。

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

謝謝你，Forrest，也感謝大家加入電話會議。

We have included detailed quarterly financial schedules together with corresponding management analysis in today's press release.

我們在今天的新聞稿中包含了詳細的季度財務計劃以及相應的管理分析。

So I will focus my comments on the key financial metrics.

因此，我將把我的評論集中在關鍵的財務指標上。

For Sea overall, our first quarter total adjusted revenue was $578.8 million, an increase of 194% year-on-year and 49% quarter-on-quarter.

對於 Sea 整體而言，我們第一季度調整後的總收入為 5.788 億美元，同比增長 194%，環比增長 49%。

This was mainly driven by the growth of our digital entertainment business, especially our self-developed game Free Fire, and our continuous monetization efforts in our e-commerce business in the past quarters.

這主要得益於我們數字娛樂業務的增長，尤其是我們自主開發的遊戲《Free Fire》，以及過去幾個季度我們在電子商務業務中的持續貨幣化努力。

Digital entertainment adjusted revenue was $393.3 million, an increase of 169% year-on-year and 70% quarter-on-quarter.

數字娛樂調整後收入為 3.933 億美元，同比增長 169%，環比增長 70%。

The growth was primarily driven by the enlarged paying user base as we continue to improve the monetization of our games, especially Free Fire.

增長主要是由付費用戶群擴大推動的，因為我們繼續提高遊戲的貨幣化，尤其是 Free Fire。

Digital entertainment adjusted EBITDA was $225.8 million, an increase of 311% year-on-year and 115% quarter-on-quarter thanks to the strong top line growth and our self-developed game accounting for an increased share of revenue.

數字娛樂調整後 EBITDA 為 2.258 億美元，同比增長 311%，環比增長 115%，這得益於強勁的收入增長和我們自主開發的遊戲佔收入份額的增加。

The increase was also partially due to the improved operating efficiencies as shown by the lower sales and marketing expenses as well as general and administrative expenses as a percentage of adjusted revenue.

增長的部分原因還在於運營效率的提高，如銷售和營銷費用以及一般和行政費用佔調整後收入的百分比降低所示。

E-commerce adjusted revenue was $149.2 million, up 342% year-on-year and 18% quarter-on-quarter.

電子商務調整後收入為 1.492 億美元，同比增長 342%，環比增長 18%。

Of this $149.2 million in adjusted revenue, marketplace revenue was $102 million, up 363% year-on-year and 16% quarter-on-quarter, while product revenue was $47.2 million, up 304% year-on-year and 20% quarter-on-quarter.

在這 1.492 億美元的調整後收入中，市場收入為 1.02 億美元，同比增長 363%，環比增長 16%，而產品收入為 4720 萬美元，同比增長 304%，季度增長 20% -季度。

As highlighted by Forrest earlier, e-commerce adjusted EBITDA loss narrowed to $235.3 million this quarter.

正如 Forrest 早些時候強調的那樣，本季度電子商務調整後的 EBITDA 虧損收窄至 2.353 億美元。

We will continue driving high-quality growth by serving users' needs better and focusing on operational efficiencies.

我們將繼續通過更好地服務用戶需求和關注運營效率來推動高質量增長。

Digital financial services adjusted revenue was $2.8 million, a decrease of 28% year-on-year from $3.9 million in the first quarter of 2018 as we focused our efforts on strengthening the infrastructure to support our existing platforms.

數字金融服務調整後的收入為 280 萬美元，較 2018 年第一季度的 390 萬美元同比下降 28%，因為我們專注於加強基礎設施以支持我們現有的平台。

Adjusted EBITDA loss was $11.9 million in the first quarter of 2019 compared to a loss of $8.6 million in the same period of 2018.

2019 年第一季度調整後的 EBITDA 虧損為 1190 萬美元，而 2018 年同期為虧損 860 萬美元。

This was primarily due to our continued efforts to integrate our AirPay and Shopee platforms.

這主要是由於我們不斷努力整合我們的 AirPay 和 Shopee 平台。

Returning to our consolidated numbers.

回到我們的綜合數字。

We recognized a net nonoperating loss of $442.8 million in the first quarter of 2019.

我們在 2019 年第一季度確認了 4.428 億美元的淨非經營虧損。

This was primarily due to the fair value loss of $436.1 million on the 2017 convertible notes as our share price during the quarter significantly exceeded the conversion prices of these notes.

這主要是由於 2017 年可轉換票據的公允價值損失 4.361 億美元，因為我們在本季度的股價大大超過了這些票據的轉換價格。

We had a net income tax expense of $7.2 million in the first quarter of 2019 which was primarily due to withholding tax and corporate income tax recognized in our digital entertainment segment.

我們在 2019 年第一季度的淨所得稅費用為 720 萬美元，這主要是由於我們的數字娛樂部門確認的預扣稅和企業所得稅。

Finally, net loss excluding share-based compensation and change in fair value of the 2017 convertible notes was $237.3 million in the first quarter of 2019 as compared to $186.7 million for same period in 2018.

最後，2019 年第一季度不包括股權補償和 2017 年可轉換票據公允價值變動的淨虧損為 2.373 億美元，而 2018 年同期為 1.867 億美元。

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

有了這個，讓我把電話轉回燕軍。

Thank you, Tony and Forrest.

謝謝你，托尼和福雷斯特。

We are now ready to open the call for questions.

我們現在準備開始提問。

Operator?

操作員？

(Operator Instructions) And the first question comes from Miang Chuen Koh with Goldman Sachs.

（操作員說明）第一個問題來自高盛的 Miang Chuen Koh。

Congratulations on this strong set of numbers.

祝賀這組強大的數字。

A few questions for me.

幾個問題問我。

Firstly, can you give us a sense of Free Fire revenues for this quarter?

首先，您能給我們介紹一下本季度 Free Fire 的收入嗎？

And how are you increasing monetization for this game since paid ratio obviously went up significantly quarter-on-quarter?

既然付費比率明顯比上一季度顯著上升，你是如何增加這款遊戲的貨幣化的？

Secondly, Free Fire downloads appears to be stabilizing last few months.

其次，Free Fire 的下載量在過去幾個月似乎趨於穩定。

Will we also expect revenues from Free Fire to be increasingly stable in coming quarters as well versus what we've seen in first Q?

與我們在第一季度看到的情況相比，我們是否還預計未來幾個季度來自 Free Fire 的收入也會越來越穩定？

And besides Call of Duty, will it be possible to give a bit more color on the pipeline of new games for the remainder of this year?

除了《使命召喚》之外，今年剩下的時間裡，是否有可能為新遊戲的開發增添更多色彩？

Thirdly, e-commerce, the cost of sales went up significantly Q-o-Q.

三是電子商務，銷售成本環比大幅上漲。

Can we get more color on the cost components that drove up this increase?

我們能否在推動這一增長的成本要素上獲得更多色彩？

And lastly for e-commerce as well, cash burn trends in coming quarters, if you could give some guidance in terms of what to expect.

最後，對於電子商務來說，未來幾個季度的現金消耗趨勢也是如此，如果你能就預期結果提供一些指導的話。

Should we be thinking it would -- it should continuously come down Q-on-Q or should we look at it more of a Y-o-Y?

我們是否應該認為它會 - 它應該不斷下降 Q-on-Q 還是我們應該更多地看待它？

Because I believe previous guidance is that we should see e-commerce cash burn being lowered this year versus last year.

因為我相信之前的指導是，我們應該看到今年的電子商務現金消耗比去年有所降低。

Are we still, I guess, on track?

我猜，我們還在軌道上嗎？

Sure.

當然。

Thanks for -- let me talk about the Free Fire first, and we're happy with the Free Fire result and the -- as you can tell from our -- this quarter's result and we see significant improvement in terms of the monetization of the game.

感謝——讓我先談談 Free Fire，我們對 Free Fire 的結果以及——正如你從我們的——本季度的結果中所看到的那樣，我們看到了在貨幣化方面的顯著改善。遊戲。

I think -- well, I think this is -- mainly reflects our efforts to continually finding better ways to engage our gamers and to understand them -- and understand what they want.

我認為 - 嗯，我認為這主要反映了我們努力不斷尋找更好的方式來吸引我們的遊戲玩家並了解他們 - 並了解他們想要什麼。

I think there is a -- across the quarter, we have different ways to try out the monetization mechanisms and some may work very, very well, some may not work very, very well so -- but overall, we feel very confident.

我認為有一個 - 在整個季度，我們有不同的方式來嘗試貨幣化機制，有些可能會非常非常好，有些可能不會非常非常好 - 但總的來說，我們感到非常有信心。

And we kind of already get a strong sense, okay, what is ideal way to monetize this game -- and but at the same time, I think -- we believe we are very conscious to make sure whatever the monetization we have, we'll make sure the community is healthy and that the engagement level with the gamers is high and the gamer satisfaction is high.

我們已經有一種強烈的感覺，好吧，什麼是通過這款遊戲獲利的理想方式——但與此同時，我認為——我們相信我們非常有意識地確保無論我們擁有什麼貨幣化，我們將確保社區健康，遊戲玩家的參與度高，玩家滿意度高。

So in a way, we are very happy to see our monetization is improving and at the same time the engagement level of the gamers is improving as well.

所以在某種程度上，我們很高興看到我們的盈利能力在提高，同時遊戲玩家的參與度也在提高。

In terms of the user growth and -- actually, we see across the market, we still see very strong growth of our new users, right?

在用戶增長方面——實際上，我們看到整個市場，我們仍然看到我們的新用戶增長非常強勁，對吧？

And as we talk about in the -- just now, right, and for the recent quarter, we had more than 50 million daily active users.

正如我們在剛才所說的那樣，在最近一個季度，我們每天有超過 5000 萬活躍用戶。

That is still significant increase from the previous quarter.

這仍然比上一季度有顯著增長。

And specifically, we see some accelerating growth for some new market which we may not really focused on previously.

具體來說，我們看到一些我們以前可能沒有真正關注的新市場出現了一些加速增長。

So as we talked about in the previous earning calls, so we see tremendous users coming from Southeast Asia and Latin America.

正如我們在之前的電話會議中談到的那樣，我們看到來自東南亞和拉丁美洲的大量用戶。

Actually, recently we started see some new pickup in some exciting markets such as India, Russia and Turkey.

實際上，最近我們開始在印度、俄羅斯和土耳其等一些令人興奮的市場看到一些新的回升。

And we see, in those markets, actually their user growth rate is accelerating.

我們看到，在這些市場中，他們的用戶增長率實際上正在加速。

In terms of the new game, they're -- at this moment as we just talked about, we are going to launch Call of Duty: Mobile.

就新遊戲而言，他們是——正如我們剛才談到的那樣，我們將推出《使命召喚：手游》。

And we are -- we have a very high expectation of this game.

我們是——我們對這場比賽有很高的期望。

This is a very, very high-quality game.

這是一款非常非常高質量的遊戲。

I think in the next couple of months what we are going to focus on is how to make sure we find the best way to position the game in our respective market and how to make sure we optimize the local operations.

我認為在接下來的幾個月中，我們將重點關注如何確保我們找到最佳方式在各自的市場中定位遊戲，以及如何確保我們優化本地運營。

We are very confident of the quality of the game and the content.

我們對遊戲的質量和內容非常有信心。

And so we believe we are going to see a very good result from the launch of the game.

所以我們相信我們會從遊戲的發布中看到一個非常好的結果。

And for other games, for competitive reasons, we are probably not able to talk too much at this moment.

而對於其他遊戲，出於競爭的原因，我們現在可能無法多談。

But in general, as we mentioned, so we are pretty happy with the potential pipeline for the rest of the year.

但總的來說，正如我們所提到的，我們對今年剩餘時間的潛在管道非常滿意。

And I think in terms of the big direction, one specific opportunity we are very excited about is because of Free Fire now doing very, very well in Latin America.

而且我認為就大方向而言，我們非常興奮的一個具體機會是因為 Free Fire 現在在拉丁美洲做得非常非常好。

And this generated a lot of interest from global developer community and which they never really launched their games in Latin America.

這引起了全球開發者社區的極大興趣，他們從未真正在拉丁美洲推出過自己的遊戲。

And they see our success, they come to us and we have multiple discussions with the global game developers to potentially launch their portfolios in Latin America -- so with us.

他們看到了我們的成功，他們來找我們，我們與全球遊戲開發商進行了多次討論，以潛在地在拉丁美洲推出他們的產品組合——我們也是如此。

So we see this could be -- tremendously increase our addressable market beyond Southeast Asia.

因此，我們認為這可能會極大地增加我們在東南亞以外的潛在市場。

So we are very excited about this opportunity.

所以我們對這個機會感到非常興奮。

I'll take the cost of e-commerce question.

我將承擔電子商務問題的成本。

So the major cost elements are the cost of logistic services, bank transaction fees, server and hosting expenses, staff cost as well as some warehousing costs.

因此，主要成本要素是物流服務成本、銀行交易費用、服務器和託管費用、員工成本以及一些倉儲成本。

And the cost is relatively stable compared to last quarter despite some slight increase which is mainly due to the server and hosting and staff expenses.

與上一季度相比，成本相對穩定，儘管略有增加，這主要是由於服務器和託管以及員工費用。

And because our monetization improved this quarter, our gross profit actually improved quite significantly compared to last quarter.

由於本季度我們的貨幣化有所改善，因此與上一季度相比，我們的毛利潤實際上提高了很多。

Right, and in terms of the Shopee overall cash burn, while we don't give guidance on this, as you can see that we see a very strong quarter in terms of the bottom line as well, not only sales and marketing as a percentage of GMV, but in absolute dollar terms also dropped quarter-on-quarter.

是的，就 Shopee 的整體現金消耗而言，雖然我們沒有對此提供指導，但您可以看到，我們在底線方面也看到了非常強勁的季度，而不僅僅是銷售和營銷的百分比GMV，但以絕對美元計算也環比下降。

Obviously, there is seasonality to e-commerce, and we do time our marketing spend in accordance to seasonality to achieve maximum efficiency.

顯然，電子商務是有季節性的，我們會根據季節性來安排我們的營銷支出，以達到最大的效率。

In terms of the sales and marketing spend going forward, there could be fluctuations as we capture growth opportunities in the market.

就未來的銷售和營銷支出而言，隨著我們抓住市場的增長機會，可能會出現波動。

We believe e-commerce is still at a very nascent stage in our region.

我們相信電子商務在我們地區仍處於非常初級的階段。

And we stand very well to gain an outsized benefit of the fast growth of the e-commerce as a whole in the region given our market leadership position.

鑑於我們的市場領導地位，我們很有可能從該地區整個電子商務的快速增長中獲得巨大的利益。

And therefore, while we continue to aim to grow very efficiently and invest prudently on long-term sustained growth, we won't be able to guide on the exact dollar spend quarter-on-quarter.

因此，儘管我們繼續致力於實現非常有效的增長並謹慎投資於長期持續增長，但我們將無法指導季度環比的確切美元支出。

We want to retain some flexibility.

我們希望保留一些靈活性。

For example, in terms of marketing spend, most recently, we announced the appointment of Shopee as a title sponsor of Indonesian premium football league, Liga 1. And it is -- as part of the sponsorship package, we have launched a new logo and branding based on Shopee's orange -- distinctive orange color.

例如，在營銷支出方面，最近，我們宣布任命 Shopee 作為印度尼西亞高級足球聯賽 Liga 1 的冠名贊助商。作為贊助方案的一部分，我們推出了新的標誌和品牌基於 Shopee 的橙色——獨特的橙色。

And this sponsorship has allowed Shopee to reach the general public across the market, especially our targets of young consumers.

此次贊助讓 Shopee 能夠接觸到整個市場的普通大眾，尤其是我們的年輕消費者目標。

So these are one of examples of good marketing opportunities that we might take advantage of from time to time as we consolidate our leadership positions across the market and further promote the brand awareness.

因此，這些是我們可能不時利用的良好營銷機會的例子之一，因為我們鞏固了我們在整個市場的領導地位並進一步提升了品牌知名度。

So on that front, while we are very encouraged by the results and we continue to want to grow very efficiently, we do think there could be fluctuations in the overall brand.

因此，在這方面，雖然我們對結果感到非常鼓舞並且我們繼續希望非常有效地增長，但我們確實認為整體品牌可能會出現波動。

But on the other hand, in terms of group bottom line, while we don't give any guidance, we think reasonably likely will be better than the current market consensus.

但另一方面，在集團底線方面，雖然我們沒有給出任何指引，但我們認為合理的可能會好於目前的市場共識。

And the next question comes from John Blackledge with Cowen and Company.

下一個問題來自 Cowen and Company 的 John Blackledge。

Just a couple of questions on the digital entertainment side.

只是關於數字娛樂方面的幾個問題。

With the big increase in margins, what's a good way to think about the margin profile for digital entertainment kind of over time, just given expected growth of self-developed games?

隨著利潤率的大幅增長，考慮到自主開發遊戲的預期增長，隨著時間的推移，考慮數字娛樂的利潤率概況的好方法是什麼？

And then on Shopee, you seem to imply that market share gains are rising, obviously with the great results again this quarter.

然後在 Shopee 上，您似乎暗示市場份額正在上升，顯然本季度再次取得了不錯的成績。

Can you just talk about how Shopee's doing relative to competitors?

你能談談Shopee相對於競爭對手的表現嗎？

And any general color on the competitive environment within the e-commerce in Southeast Asia.

以及任何關於東南亞電子商務競爭環境的普遍色彩。

Sure.

當然。

Thanks for the question.

謝謝你的問題。

I would talk about the game EBITDA part and then Yanjun will comment on the Shopee questions.

我會談談遊戲 EBITDA 部分，然後 Yanjun 會評論 Shopee 的問題。

And for Garena EBITDA margin trend, so our -- as we talked about during the call just now, our adjusted EBITDA margin in this quarter was very high, above what we believe is overall industry average.

對於 Garena EBITDA 利潤率趨勢，正如我們剛才在電話會議中談到的那樣，我們在本季度調整後的 EBITDA 利潤率非常高，高於我們認為的整體行業平均水平。

So our EBITDA margin is mainly affected by the mix of revenue contributions from self-developed games and licensed games, spending on sales and marketing and the R&D among other things.

因此，我們的 EBITDA 利潤率主要受到自主開發遊戲和授權遊戲的收入貢獻、銷售和營銷支出以及研發等因素的影響。

So as mentioned before, our strategies for the game business are continuing to bring top-quality content to our users, whether it is self-developed or licensed, to further strengthen our game development capability and to extend globally beyond our core markets.

因此，如前所述，我們的遊戲業務戰略正在繼續為我們的用戶帶來高質量的內容，無論是自主開發的還是授權的，以進一步加強我們的遊戲開發能力並在全球範圍內擴展我們的核心市場。

So we may continue to introduce third-party IP, so we may also spend more on marketing as we bring new games to market, further growing our developer team and expanding into market outside our core region.

因此，我們可能會繼續引入第三方 IP，因此我們也可能會在營銷上投入更多資金，因為我們將新遊戲推向市場，進一步壯大我們的開發團隊並擴展到我們核心區域以外的市場。

So as we successfully executed our growth strategies, our adjusted EBITDA margin for the game business could fluctuate.

因此，隨著我們成功執行增長戰略，我們調整後的遊戲業務 EBITDA 利潤率可能會波動。

In terms of the competitive environment of Shopee, we continue to see Shopee extend its leadership position especially in the core categories and key markets.

就蝦皮的競爭環境而言，我們繼續看到蝦皮擴大其領導地位，尤其是在核心品類和關鍵市場。

As we mentioned before, we believe Shopee is the market leader in all of our markets with perhaps the exception of Singapore which is a relatively smaller market that we haven't been strongly focused on yet.

正如我們之前提到的，我們相信 Shopee 是我們所有市場的市場領導者，也許新加坡除外，新加坡是一個相對較小的市場，我們尚未重點關注。

And in terms of the market leadership position, we think we are multiple times larger than our next competitor in Taiwan, for example.

例如，就市場領導地位而言，我們認為我們是台灣的下一個競爭對手的數倍。

And as we mentioned in the earnings release that for Q1 2019, we already achieved adjusted EBITDA positive before HQ cost allocation in Taiwan.

正如我們在財報中提到的那樣，對於 2019 年第一季度，我們已經在台灣總部成本分配之前實現了調整後的 EBITDA 為正。

And this is an example of where we believe that we have successfully monetized on the platform and are continuing to do so as we achieve the strong leadership position to further grow the platform environment.

這是我們相信我們已經在平台上成功貨幣化的一個例子，並且隨著我們獲得強大的領導地位以進一步發展平台環境，我們將繼續這樣做。

We believe the positive dynamics will play out in all the other markets that we're currently operating in.

我們相信，積極的動態將在我們目前經營的所有其他市場上發揮作用。

For example, in the -- our largest market, Indonesia, we recorded a daily order of 0.9 million again this quarter -- sorry, Q1, which is again extending our leadership further in the market.

例如，在我們最大的市場印度尼西亞，我們本季度再次錄得 90 萬的每日訂單，對不起，第一季度，這再次進一步擴大了我們在市場上的領導地位。

And in other markets, for example like Vietnam, now we also believe we are about 2x larger than our next competitor.

而在其他市場，例如越南，現在我們也相信我們比我們的下一個競爭對手大 2 倍左右。

In Thailand and Philippines and Malaysia, we also become the market leader.

在泰國、菲律賓和馬來西亞，我們也成為市場領導者。

So in all these markets, as we gradually further solidify our leadership position, we believe the positive dynamics that we are seeing in Taiwan will start to generally play out in those other markets as well.

因此，在所有這些市場中，隨著我們逐漸進一步鞏固我們的領導地位，我們相信我們在台灣看到的積極動態也將開始在其他市場普遍發揮作用。

And the next question comes from Conrad Werner with Macquarie.

下一個問題來自麥格理的康拉德維爾納。

Could I just maybe also see, when you talk about the market leadership, what metric are you generally honing in on?

我是否還可以看到，當您談論市場領導地位時，您通常會採用什麼指標？

Is it orders?

是訂單嗎？

Is it the GMV itself?

是GMV本身嗎？

When you talk about being 2x the size of the next competitor, in Vietnam, for example, what metric are you generally looking at?

例如，當您談到規模是下一個競爭對手的 2 倍時，例如在越南，您通常關注什麼指標？

That's the first question.

這是第一個問題。

And then a second question on the e-commerce cost.

然後是關於電子商務成本的第二個問題。

In the previous quarter, you had talked about the shipping subsidies declining in absolute terms in the fourth quarter.

在上一季度，您談到了第四季度航運補貼的絕對值下降。

Has that trend continued in the first quarter?

這一趨勢是否在第一季度繼續存在？

Are we getting away from shipping subsidies as kind of one of your key marketing tools in favor of other forms of expenditure?

我們是否正在擺脫將航運補貼作為您的主要營銷工具之一，轉而支持其他形式的支出？

And could you maybe provide some color on that?

你可以提供一些顏色嗎？

And then just maybe on Call of Duty itself, what quarter do you expect that to be launched?

然後也許就在《使命召喚》本身，你希望它會在哪個季度推出？

Presumably, it may not be launched in all markets at once.

據推測，它可能不會同時在所有市場推出。

But when does that kind of come out in a few markets, I guess?

但我猜這種東西什麼時候會出現在一些市場上？

You talked about it a few months before, but is it kind of Q2, Q3, Q4?

您在幾個月前談到過它，但它是 Q2、Q3、Q4 嗎？

Sure.

當然。

Okay.

好的。

So let me start.

那麼讓我開始吧。

Yanjun, please feel free to add on.

嚴君，請隨時補充。

And for Call of Duty, we may -- based on the -- we are still working with Tencent, Activision to figure out what is the best time to launch it.

對於《使命召喚》，我們可能——基於——我們仍在與騰訊、動視合作，以確定發布它的最佳時機。

But looking at the current schedule, it probably will be in the late Q2 or early Q3.

但從目前的時間表來看，很可能會在 Q2 後期或 Q3 初期。

So that's the time line we are looking at.

這就是我們正在研究的時間線。

So we want to capture the opportunity during -- for the summer break of schools.

因此，我們希望在學校暑假期間抓住機會。

And so for Shopee, for e-commerce, the key metrics we look at is -- actually, it's quite straightforward, it's the orders and the GMV.

所以對於 Shopee，對於電子商務，我們關注的關鍵指標是 - 實際上，它非常簡單，它是訂單和 GMV。

And on top of that, and we are also specifically looking at this category by category.

最重要的是，我們還專門逐類查看這一類別。

So we're very, very focused on the key categories.

所以我們非常非常關注關鍵類別。

We have been really, really [pushed on] so like fashion, like home and living and health and beauty.

我們一直非常非常喜歡時尚，喜歡家居、生活、健康和美麗。

So this is the key categories.

所以這是關鍵類別。

I think so in those key categories and our leadership position is even stronger.

我認為在這些關鍵類別中是這樣，我們的領導地位更加強大。

And beyond that, I think in terms of the operations, and we do care about in terms of because we're mainly -- we focus on the mobile users, right?

除此之外，我認為在運營方面，我們確實關心，因為我們主要 - 我們專注於移動用戶，對嗎？

So we're very focused on the -- our traffic and engagement on our Shopee mobile app.

因此，我們非常關注我們在 Shopee 移動應用上的流量和參與度。

So in that sense, the daily active users, monthly active users and the time spend are the key metrics we look at.

所以從這個意義上說，日活躍用戶、月活躍用戶和時間花費是我們關注的關鍵指標。

Right.

對。

In terms of shipping subsidies, yes, it's declined quarter-on-quarter in Q1 again.

在航運補貼方面，是的，它在第一季度再次環比下降。

But -- overall, Q1 is a lower season so I wouldn't take that to be a promise that it will continue to always decline Q-on-Q.

但是 - 總體而言，第一季度是一個較低的季節，所以我不認為這是一個承諾，它將繼續 Q-on-Q 繼續下降。

On thinking about shipping subsidy, I think it's important to highlight that it continues to be an effective marketing message.

在考慮航運補貼時，我認為重要的是要強調它仍然是一種有效的營銷信息。

In fact, we have less than 1/4 of people getting free shipping in one of our largest markets, while the market take the free shipping to be a very strong marketing message from Shopee.

事實上，在我們最大的市場之一，我們只有不到 1/4 的人獲得免費送貨服務，而市場認為免費送貨是 Shopee 的一個非常強大的營銷信息。

So we are spending very efficiently on that.

所以我們在這方面的支出非常有效。

And overall, it's more of a new user acquisition tool as our social sellers bring their followers on to our platform to encourage them to place orders through Shopee as opposed to some other social websites.

總體而言，它更像是一種新的用戶獲取工具，因為我們的社交賣家將他們的追隨者帶到我們的平台上，以鼓勵他們通過 Shopee 下訂單，而不是其他一些社交網站。

This is a strong message that the buyers get a direct benefit that they can easily understand.

這是一個強烈的信息，買家獲得了他們可以輕鬆理解的直接利益。

So overall, we think the shopping subsidies tend to stabilize in the longer run.

因此，總體而言，我們認為購物補貼在長期內趨於穩定。

But there might be fluctuations in the short to medium term.

但中短期可能會出現波動。

And I'm going to be rude and just maybe ask one more.

我會很粗魯，也許會再問一個。

Could you maybe talk a bit about how much digital entertainment revenue came outside Southeast Asia?

您能否談談東南亞以外的數字娛樂收入有多少？

It's a metric you provided over the last 2 quarters.

這是您在過去 2 個季度中提供的指標。

Do you have an update?

你有更新嗎？

I think it was 28% in the fourth quarter.

我認為第四季度為 28%。

What about first quarter 2019?

2019年第一季度怎麼樣？

Yes.

是的。

We didn't specifically discuss that number, but suffice it to say that it continued to grow.

我們沒有具體討論這個數字，但只要說它繼續增長就足夠了。

And as Forrest also mentioned earlier, we are very focused on growing our markets outside of Southeast Asia, now given our self-development capabilities with Free Fire having reached a global audience and being one of the largest battle royale games as well as mobile games globally.

正如 Forrest 之前提到的那樣，我們非常專注於發展東南亞以外的市場，現在我們的自主開發能力與 Free Fire 已經接觸到全球觀眾，並且是全球最大的大逃殺遊戲和手機遊戲之一.

We do hope to expand -- further expand into the emerging markets beyond our core markets as well as the other market that we currently see very strong growth.

我們確實希望擴大 - 進一步擴大到我們核心市場之外的新興市場以及我們目前看到非常強勁增長的其他市場。

I think it's -- in terms of the specific numbers, it's already more than 1/3.

我認為是——就具體數字而言，已經超過 1/3。

So we are seeing very strong growth on that front as well.

因此，我們在這方面也看到了非常強勁的增長。

And the next question comes from Nelson Cheung with Citi.

下一個問題來自花旗的 Nelson Cheung。

Congratulations on the solid results.

祝賀你取得了堅實的成果。

I have a question on e-commerce.

我有一個關於電子商務的問題。

Given that -- we noticed that the e-commerce monetization rate is very high at 4.2% in first quarter 2019, we would like to ask whether this monetization rate, is it normalized or is it sustainable monetization rate for e-commerce in long run?

鑑於此——我們注意到 2019 年第一季度的電子商務貨幣化率非常高，達到 4.2%，我們想問一下這個貨幣化率是否正常化，或者從長遠來看是電子商務的可持續貨幣化率?

And can management elaborate more on what actually contribute to the strong improvement in terms of monetization rate?

管理層能否詳細說明究竟是什麼促成了貨幣化率的強勁提升？

And maybe can management can provide more color in terms of ranking by monetization contribution and what's the growth rate by each type of e-commerce revenue stream?

也許管理層可以在貨幣化貢獻排名以及每種電子商務收入流的增長率方面提供更多顏色？

And a quick question on Speed Drifters, can management provide some more color on revenue contribution of Speed Drifters?

還有一個關於 Speed Drifters 的快速問題，管理層能否為 Speed Drifters 的收入貢獻提供更多色彩？

And a comment on life cycle of this game will be great as well.

對這個遊戲的生命週期的評論也很棒。

Sure.

當然。

In terms of the monetization rate in the longer run, obviously, our e-commerce is still at a very early stage.

就長期的變現率而言，顯然我們的電子商務還處於非常早期的階段。

It's part of the digital economy of our region, and we believe it's the biggest opportunity actually in that part.

這是我們地區數字經濟的一部分，我們相信這實際上是該地區最大的機會。

We believe in the longer run, we hope to see a monetization take rate that is close to our global peers for marketplace e-commerce, although, of course, there is a path to get there and we see very positive directions we are moving in this front.

我們相信從長遠來看，我們希望看到市場電子商務的貨幣化率接近我們的全球同行，當然，有一條通往那裡的道路，我們看到了非常積極的方向。這前線。

And in terms of overall contribution from the different streams of revenue, we see positive trends in every type of monetization avenue we have.

就不同收入來源的整體貢獻而言，我們看到我們擁有的每一種貨幣化途徑都有積極的趨勢。

Especially on the marketplace front, we see very encouraging signs in terms of the uptick in transaction-based fees as well as advertising and VAS on all fronts.

尤其是在市場方面，我們看到了非常令人鼓舞的跡象，即基於交易的費用以及各方面的廣告和增值服務的上升。

More recently, as we gained stronger market leadership positions across the region and as we focused on further promoting the healthy growth of the ecosystem for our e-commerce platform, we have rolled out more transaction-based fees across platforms and to help the sellers grow better and distinguish the better seller and bigger seller from the crowd, so that they are more incentivized to serve the buyers better.

最近，隨著我們在該地區獲得更強大的市場領導地位，並且我們專注於進一步促進我們電子商務平台生態系統的健康發展，我們推出了更多基於交易的跨平台費用並幫助賣家成長更好，並從人群中區分出更好的賣家和更大的賣家，這樣他們就更有動力更好地為買家服務。

By monetization, we not only just focus on getting money from them, we are very much focused on providing them better, more services that they would desire.

通過貨幣化，我們不僅專注於從他們那裡獲得資金，我們還非常專注於為他們提供他們想要的更好、更多的服務。

On that front, we are very confident of our ability to keep raising the monetization rate over time.

在這方面，我們對隨著時間的推移不斷提高貨幣化率的能力充滿信心。

We don't specifically disclose each stream of monetization, our strategies quarter-on-quarter, for competitive reasons.

出於競爭原因，我們沒有具體披露每個貨幣化流，我們的季度策略。

But as mentioned earlier, we think the marketplace take rate contributes quite significantly to the overall take rate increase in this quarter.

但如前所述，我們認為市場接受率對本季度的整體接受率增長做出了相當大的貢獻。

In terms of Speed Drifters, it is -- very successfully launched in Q1 in most of our markets.

就 Speed Drifters 而言，它在我們大多數市場的第一季度非常成功地推出。

And we see very strong performance in terms both of user adoption, paid user ratio as well as monetization overall.

我們在用戶採用率、付費用戶比例以及整體貨幣化方面都看到了非常強勁的表現。

And it did contribute meaningfully to the uptick in our adjusted revenue.

它確實對我們調整後收入的上升做出了有意義的貢獻。

And we think it's 1 of the top 4 games in our portfolio now.

我們認為它現在是我們投資組合中排名前 4 位的遊戲之一。

And the next question comes from Mark Goodridge with Morgan Stanley.

下一個問題來自摩根士丹利的 Mark Goodridge。

I just have 2 questions.

我只有2個問題。

One on Call of Duty, I'd just ask, can you just give us a bit of strategy how you guys are going to manage any potential cannibalization of Free Fire when that game launches?

一個關於使命召喚的，我只想問，你能不能給我們一些策略，當遊戲發佈時你們將如何管理任何潛在的 Free Fire 蠶食？

And then secondly just on e-commerce, we saw you introduce some monetization late Q4, which obviously seen the results here in Q1.

其次，在電子商務方面，我們看到你們在第四季度末引入了一些貨幣化，這顯然在第一季度看到了結果。

But specifically, could you tell us what has been the reaction of your competitors in Thailand and Indonesia and Vietnam where you've introduced the monetization?

但具體來說，您能否告訴我們您在泰國、印度尼西亞和越南引入貨幣化的競爭對手的反應？

Have we seen the competitors follow suit and introduce exactly the same measures in those markets?

我們是否看到競爭對手效仿並在這些市場推出完全相同的措施？

In terms of Call of Duty, obviously, it is a very well-known franchise, very big IP with its core followers in the West, and we are very excited about bringing into our region.

就使命召喚而言，很明顯，它是一個非常知名的系列，非常大的 IP，其核心追隨者在西方，我們很高興能將其帶入我們的地區。

We believe the experience -- although, we are still working on the -- with the developer about the exact content that's tailored for our region, the overall experience will be more of a classic FPS, action-based kind of game.

我們相信這種體驗——儘管我們仍在與開發者一起研究為我們地區量身定制的確切內容，整體體驗將更像是一款經典的 FPS、基於動作的遊戲。

I think that differentiates itself from Free Fire which is a more hybrid, battle royale games with fantasy elements, imaginative content.

我認為這與 Free Fire 不同，後者是一款更加混合的大逃殺遊戲，具有幻想元素和富有想像力的內容。

On that front, we are not too worried about cannibalization.

在這方面，我們並不太擔心自相殘殺。

When we take on any new content, we would carefully analyze its interaction with our existing portfolio.

當我們採用任何新內容時，我們會仔細分析它與我們現有產品組合的交互。

So we're, of course, very careful about that as well.

當然，我們對此也非常小心。

In terms of monetization and competitive behavior of our competitors, so we don't comment on our competitors or other players in the market.

就我們競爭對手的貨幣化和競爭行為而言，我們不對我們的競爭對手或市場上的其他參與者發表評論。

We think overall, our monetization ability is more affected, mostly dependent on our ability to serve our sellers as well as returns, the value add the sellers derive from the platform as opposed to what the competitors are doing.

我們認為總體而言，我們的貨幣化能力受到的影響更大，主要取決於我們為賣家提供服務的能力以及退貨，賣家從平台獲得的附加值，而不是競爭對手正在做的事情。

So we are not really that much influenced by their behavior.

所以我們並沒有真正受到他們行為的影響。

We've clearly seen that Lazada have followed.

我們清楚地看到，Lazada 緊隨其後。

They've introduced commissions similar to your commissions in Vietnam that -- are you able to make a comment to say whether or not they've done the same thing in Indonesia?

他們引入了與您在越南的佣金類似的佣金——您能否發表評論說他們是否在印度尼西亞也做過同樣的事情？

I think in Lazada, we haven't seen they have charged a higher commission in Indonesia.

我認為在 Lazada，我們還沒有看到他們在印度尼西亞收取更高的佣金。

But again, I think they do -- in the historical periods, our -- other players have done different things.

但同樣，我認為他們做了——在歷史時期，我們的——其他球員做了不同的事情。

They may or may not charge commission.

他們可能會或可能不會收取佣金。

They may increase or decrease commissions as we continue to grow and extend our market leadership positions.

隨著我們繼續發展和擴大我們的市場領導地位，他們可能會增加或減少佣金。

And so there hasn't really been any great impact on our business or how we think about our own monetization strategies.

因此，對我們的業務或我們對自己的貨幣化策略的看法並沒有真正產生任何重大影響。

And the last question comes from Varun Ahuja with Crédit Suisse.

最後一個問題來自瑞士信貸的 Varun Ahuja。

Congrats on a good set of numbers.

恭喜一組好數字。

First on online games, a few questions.

首先關於網絡遊戲，幾個問題。

On Free Fire, can you comment how do you see this game life?

在 Free Fire 上，您能評論一下您如何看待這款遊戲的生活嗎？

Because obviously this game has done really well.

因為顯然這款遊戲做得非常好。

Looks like 2019 will be strong for you because of Free Fire.

看起來 2019 年對你來說會因為 Free Fire 而變得強大。

But beyond that, generally when you have discussions, how -- what do you see of this battle royale genre which is going still strong?

但除此之外，一般來說，當您進行討論時，您如何看待這種仍然強勁的大逃殺類型？

How much as an investor we should view this game life over the 2 to 3 years period?

作為投資者，我們應該如何看待這個遊戲在 2 到 3 年內的生命週期？

Secondly on self-developed, can you give -- as the last 2 few quarters, you have given how much of revenue is being contributed by self-developed game and what percentage of revenue came from mobile for this quarter.

其次，關於自主開發，你能否給出——在過去的兩個季度中，你已經給出了自主開發遊戲貢獻了多少收入，以及本季度來自手機的收入百分比。

Thirdly, if you can elaborate any other self-developed games that you're looking at in terms of genre in order to increase that component, that will be helpful.

第三，如果您可以根據類型詳細說明您正在查看的任何其他自主開發的遊戲以增加該組件，那將是有幫助的。

And lastly, as you briefly mentioned, you may look at Latin American markets, so how should we look at this space?

最後，正如您簡要提到的，您可能會關注拉丁美洲市場，那麼我們應該如何看待這個領域？

Are you in any advanced stages of discussions?

您是否處於討論的任何高級階段？

Or is it a 12 to 18 months where you're away from looking at that space?

還是在 12 到 18 個月的時間裡你遠離那個空間？

Are you looking at any -- have you started making some investments?

你在看任何——你開始做一些投資了嗎？

Those colors will be helpful.

這些顏色會很有幫助。

On e-commerce, I know you don't break it up, the revenue, by various market base, by various components, but is it fair enough to say that, that value-added services still remains the largest contribution of realization rate or take rate purely from a marketplace perspective, excluding the product revenue?

關於電子商務，我知道你沒有把它分解，收入，按各種市場基礎，按各種組件，但是否公平地說，增值服務仍然是實現率的最大貢獻？純粹從市場的角度考慮費率，不包括產品收入？

Those would be helpful.

這些會很有幫助。

Sure.

當然。

Let me start and, Tony and Yanjun, feel free to add on.

讓我開始吧，Tony 和 Yanjun，請隨時補充。

And for Free Fire, actually we are pretty happy about what we have seen in terms of the trend.

對於 Free Fire，實際上我們對我們所看到的趨勢感到非常高興。

And to be honest, because this is a very new genre and there is not -- for the industry, there is not much historical data we can look at and specific to this genre in terms of the life cycle, so several quarters ago, we may share the similar -- we have the similar questions you asked.

老實說，因為這是一個非常新的類型，而且沒有——對於這個行業來說，我們可以查看的歷史數據並不多，而且在生命週期方面特定於這個類型，所以幾個季度前，我們可能會分享類似的問題——我們有你問過的類似問題。

But looking at the trend now, we are pretty happy and we feel very optimistic that the reason we see that the gamers' engagement level is increasing, right, in terms of how often they come to play the game and how much, right, I mean in terms of average gameplay session, how long they play the game.

但是從現在的趨勢來看，我們非常高興，我們感到非常樂觀，因為我們看到遊戲玩家的參與度正在提高，對，就他們玩遊戲的頻率和數量而言，對，我意思是平均遊戲時間，他們玩遊戲的時間。

And we believe, we see that still there's a lot of -- so we ask them about the genre specifically on Free Fire as well in the gamer community.

而且我們相信，我們看到仍然有很多——所以我們向他們詢問了這個類型，特別是在 Free Fire 以及遊戲玩家社區中。

And as I mentioned just now, we even see accelerating user growth in certain new markets.

正如我剛才提到的，我們甚至看到某些新市場的用戶增長正在加速。

So we do feel there is still a -- we do still feel there is a long way to go, and -- for Free Fire.

所以我們確實覺得還有 - 我們仍然覺得還有很長的路要走，而且 - 對於 Free Fire。

And specifically I think also for the battle royale, for the genre itself, we believe this genre is just at their starting page, right, and compared to MMORPG game, compared to like mobile or FPS games, so this genre is just at the very beginning.

特別是我認為對於大逃殺，對於流派本身，我們認為這個流派只是在他們的起始頁，對，與 MMORPG 遊戲相比，與類似的移動或 FPS 遊戲相比，所以這個流派只是處於非常開始。

So the genre itself will continually evolve, and we believe this is -- will going to provide huge opportunities for all the game studios players, specifically if you want to focus on this genre.

因此，該類型本身將不斷發展，我們相信這將為所有遊戲工作室玩家提供巨大的機會，特別是如果您想專注於這一類型。

Of course, because of the success of Free Fire, we think we are very, very well-positioned as the game studio so in this genre to tap on this opportunity because we have learned a lot through the Free Fire development, and we have a lot of real-time user data.

當然，由於 Free Fire 的成功，我們認為我們作為遊戲工作室的定位非常非常好，所以在這個類型中利用這個機會，因為我們通過 Free Fire 的開發學到了很多東西，而且我們有一個大量實時用戶數據。

We understand the gamers of the genre's behavior, their preference pretty well.

我們非常了解該類型遊戲玩家的行為和偏好。

I think we have a lot of insight on that.

我認為我們對此有很多見解。

In that sense, we are very confident.

從這個意義上說，我們非常有信心。

So we are going to continually invest in the development and adding the content and the different ways to monetize the game and the social features, community features and even the live streaming features, all those type of things into the game.

因此，我們將繼續投資於開發和添加內容以及通過遊戲獲利的不同方式以及社交功能、社區功能甚至直播功能，所有這些類型的東西都將融入遊戲中。

And so in terms of the thing you asked about what is the percentage of our Garena revenue for the self-developed game, I would say that at this moment, it's pretty much like account for 50% to 60% of our total game revenue from -- for our self-developed games.

所以關於你問到我們的Garena收入佔自主開發遊戲的百分比是多少，我想說的是，目前，它幾乎佔了我們遊戲總收入的50%到60%。 ——用於我們自主開發的遊戲。

We do have several development in our -- new title development in the process.

我們確實在我們的 - 新標題開發過程中進行了一些開發。

I think this is still too early to specifically talk about any individual of [those -- both them].

我認為現在專門談論[那些——他們倆]中的任何一個人還為時過早。

But we remain a very kind of fast execution approach.

但我們仍然是一種非常快速的執行方法。

Clearly, we just a have a very small team, probably 5 to 6 people, and to build our idea and start to build up the prototype.

很明顯，我們只是一個很小的團隊，大概 5 到 6 人，來構建我們的想法並開始構建原型。

And when we have the prototype and we quickly launched in certain market, [without mention] Garena brand.

當我們有了原型並迅速在某些市場推出時，[不用說] Garena 品牌。

And we want to see how -- we want to collect the initial setup, the data from the users especially on the retention rate and the organic growth user growth rate.

我們想看看如何——我們想收集初始設置、用戶數據，特別是關於保留率和有機增長用戶增長率的數據。

And that is the key metrics when we evaluate if we want to continually develop the game or potentially launch the game or we just think probably this idea doesn't work -- we want to just focus on -- shift the focus to some other projects.

這是我們評估是否要繼續開發遊戲或可能推出遊戲時的關鍵指標，或者我們只是認為這個想法可能行不通——我們只想專注於——將注意力轉移到其他一些項目上.

So and I think this is kind of a very dynamic evaluating process, and that could be a very time-efficient and a cost-efficient way to develop the games.

所以我認為這是一個非常動態的評估過程，這可能是開發遊戲的一種非常節省時間和成本效益的方式。

And in terms of Latin America, we are very excited about the opportunity we have observed there.

就拉丁美洲而言，我們對在那裡觀察到的機會感到非常興奮。

So Free Fire is doing very, very well.

所以 Free Fire 做得非常非常好。

And so I think the gamers there, they are equally -- so they think about the games compared to our core market in Southeast Asia.

所以我認為那裡的遊戲玩家，他們是平等的 - 所以他們認為遊戲與我們在東南亞的核心市場相比。

So we have several discussion leads with multiple game developers specifically for that region.

因此，我們與多個遊戲開發商專門針對該地區進行了多次討論。

And we all see the good opportunity there.

我們都看到了那裡的好機會。

Specifically, I think we mentioned this before, so we are in discussion with Tencent to potentially launch Speed Drifters in Latin America as well.

具體來說，我認為我們之前提到過這一點，因此我們正在與騰訊討論可能在拉丁美洲也推出 Speed Drifters。

So the game performed very, very well in Southeast Asia.

所以這款遊戲在東南亞的表現非常非常好。

So we're all happy about the result we have seen and the potential of the game in other markets.

所以我們都對我們所看到的結果以及遊戲在其他市場的潛力感到高興。

And racing is kind of a global popular topic, right, among gamers and the general audience.

賽車是一種全球流行的話題，對，在遊戲玩家和普通觀眾中。

So we think we may see good potential there as well.

因此，我們認為我們也可以在那裡看到良好的潛力。

But at this moment because this is kind of a new game, we still want to test out.

但目前因為這是一款新遊戲，我們還是想測試一下。

So we want to -- before we make the decision to launch the game, we want to make sure, okay, in terms of the specific game graphics of Speed Drifters, the gameplay, is it like really kind of suitable, right, for the Latin America gamers?

所以我們想——在我們決定發布遊戲之前，我們想確定，好吧，就 Speed Drifters 的特定遊戲圖形而言，遊戲玩法是否真的適合拉丁美洲玩家？

Do we need to make any adjustments before launching the game?

在啟動遊戲之前我們需要進行任何調整嗎？

So we're closely working with Tencent on that.

因此，我們正在與騰訊密切合作。

Right.

對。

In terms of the components of the take rate as you mentioned, VAS is a large part of the marketplace take rate, simply because it's a recognized growth level for us based on our business model.

就您提到的採用率的組成部分而言，VAS 是市場採用率的很大一部分，僅僅是因為根據我們的業務模式，它是我們公認的增長水平。

As we charge the fees to the sellers and then outsource the logistics to third-party logistic services provider, somewhat like a [tinier] model.

由於我們向賣家收取費用，然後將物流外包給第三方物流服務提供商，有點像[小]模式。

On that front overall, we think we're close to breakeven for the logistics part.

總體而言，在這方面，我們認為物流部分接近盈虧平衡。

And -- but important to note that sales -- sorry, transaction-based fees as well as advertising is a significant part of our marketplace take rate.

而且 - 但重要的是要注意銷售 - 抱歉，基於交易的費用以及廣告是我們市場接受率的重要組成部分。

And more importantly that the increase we're looking at in the marketplace take rate is largely attributable to the increase in the take rate based on transaction-based fees as well as advertising.

更重要的是，我們看到的市場接受率的增加很大程度上歸因於基於交易費用和廣告的接受率的增加。

That's helpful.

這很有幫助。

Just a couple of more things.

還有幾件事。

PUBG Lite was launched last quarter so just wanted to understand how much it has helped.

PUBG Lite 於上個季度推出，所以只是想了解它有多大幫助。

And you didn't give the indication of what percentage of revenue is coming from mobile.

而且您沒有說明來自移動設備的收入百分比。

That will be helpful.

這會很有幫助。

And lastly on Latin America, given you're looking at launching potentially the Speed Drifter, is -- how should we look at the investments in Latin American market?

最後在拉丁美洲，鑑於您正在考慮推出 Speed Drifter，我們應該如何看待拉丁美洲市場的投資？

Will you be at similar scale as the new core market?

你會和新的核心市場處於類似的規模嗎？

Do you need to have physical presence or you still want to do it from here?

您是否需要親自到場，或者您仍想從這裡開始？

Any commentary on that will be helpful.

對此的任何評論都會有所幫助。

Yes.

是的。

So I think as we are getting close to -- on our time, I'll take these questions and if there's any further discussions, we can continue on a call later.

所以我認為，隨著時間的臨近，我會回答這些問題，如果有任何進一步的討論，我們可以稍後繼續通話。

So in terms of PUBG Lite, we have published most of our core markets.

因此，就 PUBG Lite 而言，我們已經發布了大部分核心市場。

We haven't started monetizing it yet and the performance is as expected.

我們尚未開始將其貨幣化，其表現符合預期。

In terms of percentage of revenue from mobile and Lat Am -- sorry is that the question you just asked?

就移動和拉丁美洲的收入百分比而言——抱歉，您剛才問的是這個問題嗎？

Sorry.

對不起。

Yes.

是的。

Percentage of revenue from mobile, gaming revenue from mobile -- mobile games.

來自移動端的收入百分比，來自移動端的遊戲收入——手機遊戲。

Okay.

好的。

The percentage -- revenue from mobile continue to increase.

百分比——來自移動的收入繼續增加。

And we think overall, mobile is the largest opportunity in terms of digital entertainment segment while we continue to see a strong core base from our PC users.

我們認為，總體而言，移動是數字娛樂領域最大的機會，而我們繼續看到我們的 PC 用戶擁有強大的核心基礎。

But overall percentage, mobile will become a very significant part of our business overall.

但總體而言，移動將成為我們整體業務中非常重要的一部分。

So yes, it continues to increase from last quarter.

所以是的，它比上一季度繼續增加。

Thank you.

謝謝你。

And that's all the time we have for questions right now.

這就是我們現在提出問題的所有時間。

So I would like to return the floor to management for any closing comments.

因此，我想將發言權交還給管理層，以徵求任何結束意見。

Thank you, operator.

謝謝你，接線員。

Thank you, everyone, for joining today's call.

謝謝大家加入今天的電話會議。

We look forward to speaking to you all again next quarter.

我們期待下個季度再次與大家交談。

Thank you.

謝謝你。

Thank you.

謝謝你。

Thank you.

謝謝你。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect your lines.

您現在可以斷開線路。