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Sea Limited American Depositary Shares, each representing one Class A Ordinary Share
Q4 2022 Earnings Conference Call
3/7/2023
spk_0: good morning and good evening welcome to the see limited fourth quarter and four year twenty twenty two results conference call or participants will be in listen only mode should you need assistance please signal conference specialist by pressing the starkey followed by zero after today's presentation there will be an opportunity to ask questions please note this event is being recorded out now like to turn the conference ever to miss minzu some please go ahead
spk_1: hello everyone and welcome to seize twenty twenty two fourth quarter and for hear any company cause i'm into some from sees the chief for the offices office before we can see i would like to remind you that we may meet with me for that these statements which are intricately subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our presses also this calling for the discussion of the in non gaap and into measures such as adjusted ebitda we believe these measures can enhance our ancestors understanding of the actual cash those are your business businesses when used as a compliment whitecaps disclosures for discussion of the use of not get financial measures and reconciliation with the closest get measures please refer to the section on non definition measures in a press release i have with me see as chairman and chief executive officer for asleep chief financial officer for the whole and good cheese corporate officer you enjoy or massive will share strategy and does this the operating highlights and financial performance for the fourth quarter and full year of twenty twenty two this will be bothered by a to enter session in which we welcome any questions you have with that let me try to pull over to force
spk_2: hello everyone and a thank you for joining today two thousand and two was another year of evolution for us even the micro certainties a fever sixty five to be late last year to focus on t dishes and a fucking delicious as a result if he doesn't get your point for from the author lot for the fourth quarter of a car and a total of as justice digital both time positive moreover generated three hundred twenty million dollars of cash from operations to the quarter it has not be as easy search because the second and she's such a short period of time he popped up the galactic ashworth of our seen as the whole and very shocked and the resilience that our teachers have chemistry which of the our
spk_3: but we be
spk_2: this is the right path to see lots of success as be confusing se as as much as in the old girls going forward we have adopted the cause of doing that but it's better we started our focus on earth with the greek the potential of our businesses we were outside of recent not for hockey green light or a has life with development and the project closer and it's part i'd not for initiatives the measure probably just coffee improvements when fortunately the a lot to focus our manager or of results and the financial resources on to support is better wow so focused on dispatcher foreign reserves of our toes cause jesus and so we continue to occupy customer service center management and the logistics and kareena we work to improve the said the trees and the concept of our case also do not reach the money store with the rest of our school system to better serve under address the financial yeah
spk_4: i was is more detail
spk_2: the microphone seventy an hour recent strong team and we continue cross the morning for classes environment and it's just our pace and part and our operations forces at the results here make your time saturation yeah
spk_5: results in a performance
spk_2: however we remain finding happiness in the long term growth potential our party and the highly focused on capturing the stop for me why importantly or places and ability to attitude towards profitability enable us to start to southern rid of much stronger with you but not his cock his business segment detail with sars and to share that shot is a dejected turn positive for the time to the fourth quarter of two thousand twenty two the improvements we achieved equality revenue an operating costs what's key factors like fourth quarter profit
spk_6: porter
spk_2: get revenue was to one is dollars of thirty two percent yorkshire this wasn't too strong growth classically threat we are practically advantage both transaction face
spk_7: and for of my eyes
spk_2: crazy as we keep the money has dishes and assault research investment by dollars are fastball to serve fire better so your former general zero the time of the fourth quarter with crowe forty four percent box without a twenty one different sort of recent cause we must have thought of the bigger to the fourth quarter a i see improved by first four percent for top quarter the fifty five percent the around here proven by more taxes investment of across she's into suggest and a brand marketing
spk_8: there were also showed improvement the arms and it's just a fancy
spk_2: not the reason the orchestra market we reported off the subject of digital of three hundred and twenty billion dollar the fourth quarter these represent a significant improvement from the previous quarter which set up with just the disease or loss of two hundred seventy million dollars your father murphy that just is or lot of people are more than fifty percent for a quarter to one hundred and twenty for me to stop different deal we continue to do to was sworn improvement unique is not oracle producer parking lot for order increased by fifty four percent from the previous quarter to four seven direct result of the to we have been able to drive me what improvements do logistics costs to our school system this will remain and forces area of focus going forward we believe that lowering the cost to serve two our long term goal by locking large and their users governance of our well may have arrested earlier stuff from these efforts during deal with her room for improvement he has is to cost advancements we remain highly focused on improving users for example we have been systematically use and optimize our perfect management for customer service with was not that the message and a party for general use their spirits but also for active management of tail faces oh to six we have been working to provide more speeches and a reliable spirit to our users this is true reducing waste time get my even reposted and the price of the atmosphere to that of the fire humanity logistics the my for environment remains uncertain and the year deal with on consumption or
spk_9: with our recent events were so a posse bottom line for for time as such or of this year will be to continue to submitted by the deficiency days and optimize the cost factor of our party's york based on market
spk_2: with of work to for three our a decent and a profit you for deal will focus on twenty the business to work for three to capture the second of to me see if this new markets tmz will not be remade of food for us in the near term it is important to remember time are not and authors are sustainable growth or something did not have you you prefer hundred pieces are murphy remains low as compared to the potential benefits to apply for said automatic both have to join highly favorable demographic or trend is from stop their march at the grocery store operations okay by long term economic growth potential of or markets that is question for does it's worth of these days it's how much of these and their search for all and consumption because it's disappointing that dress the determine the size of the profitable can we will be able to capture we believe a large part of the answer lies or ability to continue to improve the coffin structure of our if it has knowledge of regional accident and the most importantly and all beavering commitment to sir arthur them we've started seeing where is now he's to back the position of us with chief justice for girl for visibility and the defendant guilty of our ecosystem to the long run now that certain still at the payments in two thousand twenty two online game at the market with each practice by awfully mother recent to use their engagements and the money at least our game theorists the cities are fun during the fourth quarter during the gap revenue was five hundred and forty nine million dollars and the book is worth five hundred and forty four me all hundred active users reached four hundred and eighty six million with forces four million free the pain you there is so an average many producer reminder that it could be staple quarter on quarter what we're have to have twenty two cats left you with respect knife in his daughter we focus has two point eight billion dollars despite the ongoing with a recent we remain focused on this disease or court case we prioritize be determined by offering by surf and more enjoyable experiences target with have targeted initiative for and are you there we have also been to like game content to improve but that the beliefs and gameplay for all users across diverse market devices coughing dishes be we have proper safety review our poppy seeds and as doc development pipeline in line with out of principle of doing the math but this is better as a result we have a bad this and the crow third projects as a remain in back to a bar high potential for death to better the rack our resources this year we will focus on seventy five hours give or take and a community while continuing to the decent ourselves to pursue not from go up to the as they arrive lastly are still financial services my members you with three hundred and eighty dollars in the fourth quarter of two thousand twenty two mathematical for that year on year adjusted to be done also tested positive for the fourth time at seventy six million dollars for a fourth quarter the improvements for visibility was three of both sort of like girls and of my business of sales and marketing packets for the we're of two thousand twenty two that revenue was one point two billion dollars one hundred and sixty percent year on year and has just been bitten off with two hundred and twenty nine million dollars
spk_10: as often as not the fourth quarter of photo albums receivable our final she was two point one billion dollars
spk_2: that of a for press nazis have two hundred and thirty nine million dollars our the much deeper this is a synergistic part of our beautiful ecosystem for example or mobile always has resulted in lower transaction costs and a more stimulus transaction spirit or shocking shopping for has allowed the mobile wanted to grow is user base and abuse use their been more efficiency we stop these are crisis business is able to leverage of large taxes user base a highly venomous you case with significant scale and those wealth of users sides or more taxes and underwriting at the same time saki benefit as consumers to worth the next full payment options successful crisis and as research before we back our resources for it wealth management and the best bits to join together we are to common platform to serve to mars and earth or of community our profits we is as important long term goal as you for us we will continue to prioritize the ecosystem strategy you for that as he comes up with the pieces and pocket to conclude or performance in the fourth quarter with that important pieces of our ability to of for visibility and it's easy for me for results this is a testament to the stress and the resilience of our as their like business model and his execution capabilities of our key although in fact my for consistency to your food clothes that are the year for so long term potential of our businesses and the party remember last reflect passage of obscenities well in numerous strong and this is dennis shareholder returns over time we thought i was in my point is to discuss our financial
spk_11: i feel for it and the thanks to everyone of time that we have included details financial status as a list of responding that's not how does this
spk_12: a successor
spk_2: and far as discussed some of our house so i will focus my comments on the other she's forty overall for those get revenues increased seven percent get out here for three four five hundred dollars in the fourth quarter and twenty five percent yes yes assault rifles and it's dollars for the full year old two thousand into this was five years isn't fattening foods as the city hockey almost as the show financial services
spk_11: partially offset by the orchestra side
spk_13: the commerce or fourth quarter guess i have two point one billion dollars included get pocket said turn you off once on a visit dollars ah forty three percent yeah year and get from that out of your of conservative dollars for the full year of two thousand and twenty two
spk_2: cat revenue of seven point three billion dollars including kept marketplace or of six point two hundred dollars
spk_12: fifty two percent yeah yeah
spk_2: and gas production of original one thousand one hundred dollars he comments that a city be thoughts since positive for the first time in the fourth quarter as one hundred and ninety six million dollars the improvements were babies from more targeted investments in our sales and parking setting decent position and father optimization of cost structure i just as he thought that was for there was also positively impacted by approximately eighty million dollars cross reversal resulting from changes in previous estimations of says expenses as the made the national addition to of us serves near focus on cost efficiencies two thousand and seventy two years as it is also have improved by thirty four percent yeah year to one point seven billion dollars digital entertainment book case were five hundred and forty four dollars in the fourth quarter and to one thousand and dollars for the full year or two thousand and twenty two gazprom new with nine hundred and forty nine dollars in the fourth quarter and three one nine hundred dollars for the full year off without it digital entertainment or he saw was two hundred and sixty eight minutes dollars in the fourth quarter and one point three billion dollars for the full year off without it in the fourth quarter of two thousand and two we also recognize and impairment of who will charge of one hundred and seventy eight minutes dollars say to certain historical investment for this is it or anything
spk_11: impairment of cool little are excluded from segment the as he is isolation as it is not reflective of the underlying tries in our current quarter offer these before
spk_12: digital financial services caproni deal with up by ninety two percent yeah here to three hundred and eighty minutes dollars in the fourth quarter and a firewall hundred and sixty percent yup year
spk_2: to one point two billion dollars for the full year of his other issues the it was made a to by the rules in our predecessors a just a bit that says policy for the first time at seventy six minutes dollars in the fourth quarter and just as the be the boss was hundred and twenty nine hundred dollars for the full year off without it two
spk_12: improvements in the bottom line was driven by both strong on parole and optimization of sales and boxes bets as well as also fourth quarter football mostly syllables was two point one billion dollars net off allows for the advantage
spk_2: have two hundred and thirty nine hundred dollars not performing loans have to buy more than ninety days as a percentage of our photographs lot of to climb from leicester for the sense in the third quarter to less than two percent
spk_12: mainly due to the shortening the of those guys all period
spk_2: yes as a market from one hundred and eighty days to one hundred and twenty days in the forceful these are our assessment of historical credit office without his changed in right off here is the ratio would be around five percent
spk_14: returning to our consolidated numbers we recognize the next not how funny because of thirty five million dollars was the that of others to compared to a net non profit and loss of seventy one minutes or less is it was for their his office of the was
spk_2: are not operating income for the fourth quarter was a huge or two hundred dollars next game one two thousand and twenty two comfortable for pre purchase partially offset by investment losses criticized much lower than wishes of world broader office but a full year or next not often loss was thirteen million dollars compared to lot of one hundred and thirty two million dollars for the food you it he was we had a net income tax credit of for three minutes dollars in the fourth quarter to the others and twenty two compared to the net the expense of one hundred six hundred dollars for for a one that income tax credit was telling you to read this our efforts have at it from says insects losses carried over from our these almost business partially offset by income has incurred by our so at the seasons
spk_15: we recognize the difference as as as as we assessed as it is more likely than not said our future taxable income will be sufficient to allow this before attack at the to deal to us
spk_2: for the full year our net income tax extent was one hundred and sixty eight dollars compared to three hundred and thirty three million dollars for the full year without it was as a result net income was four hundred and thirty three million dollars in the fourth quarter of two thousand and twenty two as compared to as a lot of six hundred and sixty million dollars the fourth quarter it
spk_16: one
spk_1: this includes is negative impacts of one hundred and seventy eight million dollars in terminal will that is to sit and precisely investments with additional as soon as it is
spk_17: and a positive impact of two hundred dollars as game of death extinguishment as long as positive impact of approximately one hundred thirty million dollars of role reversal for the full year net loss was one point seven adults with less than me too part of me too
spk_18: thank you for us and saudi
spk_0: ready to open the consultation as usual a good cheap search and will be and you will need this upper here and you will now begin to question and answer session taffy question you me press stars and one on touchstone phone for using speaker speakerphone please pick up your hands said before pressing the keys to withdraw your question please post stars and to
spk_19: the interest of time we will take a maximum of two questions at a time from each color if you wish ask more questions please request to join the question que again after your for first question has been address at this time will pass momentarily to similar roster a first question comes from pangs it from goldman sachs please go ahead think is a must for the opportunity and congratulations management and on some clinton and so it's tongue allow to question some sleep on something simple one can you please explain to us condom major labels at met to discuss movies fostering hung about in such a nice this corner
spk_1: how did you manage she's i see is it my way up the between increase in the cost cutting i sent a deliberate attempt to cut off and prophecies couple with him in order to as he says as question number one question them the to going forward awesome have only seen only turn around and bottom line how do you plan to
spk_20: balance between girls and profits have been a key how do we build confidence that growth and combat and how do you build a current competitive skins assess certain strength from social she'll commerce player will you make sure that the moon
spk_1: sat on a comment or small side and as you can provide us iceland come to class
spk_21: thank you
spk_22: himself
spk_23: drivers for quick turnaround
spk_24: for shops
spk_1: the think we shared universe
spk_21: force message
spk_22: that's awesome
spk_1: hm some top
spk_25: we managed to see celtics me
spk_26: citation a class various types of venues including the club marketplace revenue which of to the same margin
spk_1: as nice other text messages as our summers mr more well with
spk_21: and also under costs such an extent
spk_1: still smarting sense if you noticed how sales marketing for shot be chopped one and sixty percent young year
spk_23: well it seems to me
spk_21: for sense
spk_27: interesting thesis yeah
spk_24: that shows the resilience of our ecosystem and and strong leadership and executions excellence of our team in managing
spk_1: she wishes of a few months time to tons
spk_28: for me to a foster father fla still sustain a strong leadership of the fossil
spk_1: and the same time also enjoy it savings you know d and she added extensive one on for this all songs with they are improving and also it's well in line with our previous hard to find quickly and decisively as we see metal sentences marcus and that has always been our ability to execute on what we do what we promise to the markets and to on cheese as we shared has not been a to be quoted as a lot of hard work and we make sacrifices as it markets we don't have leashes what's on is seated to decide which is court which is less poor will bring you to power time and will we need a deep he's a lot of work condensed a few months time with a tremendous sight hrc scene and therefore achieve this and i think this also give us much better confidence to navigate whatever challenges and my come home late teacher in terms of outlook and balancing growth and profitability though as we shared also oh look some it in the long months remains very strong
spk_21: because of it's democrats the features young voting population and digital penetration
spk_1: lisa off for me to and also the economic growth potential of allegiance the same time we believe that all these efforts were making deal using the construct your of our ecosystem and strengthening our ability to sort of users with very serious
spk_23: wallace to capture a larger share of the site
spk_1: in the long and further strengthened or much and leadership which is a do in addition to profitability
spk_21: for all asian markets
spk_1: but there is not a just have you been a long term potential and focus of our business to capture this opportunity in a new time of course we can't you to see back on certainty wins to consumption
spk_29: so we will be adjusting fine tuning of cheese and operations carefully
spk_1: i don't any manner of do all markets fox you reach a period and adjust accordingly
spk_24: and therefore we also share that he makes that fluctuations performance and results in the near term some fury to period
spk_25: the other hand i think we have demonstrated clearly authenticity to execute both roles and profitability
spk_30: so in the long run with the we're very focused on sustainable growth and further defending the solidify our ecosystem
spk_1: not a trump's of a competitive landscape our view is that are in the long run
spk_21: investment in the ecosystem it's importance for investment is not just solely in the in the shape of financial investments the morning for me
spk_31: in terms of operational capability the local operational capabilities this is still a heavy operational
spk_1: system that we need to fill for of online
spk_21: retail marketplace
spk_1: therefore there will always be calm competitors for other entrance into the market with different those different positioning different advantages to such as
spk_0: the beauty of you commerce is that requires a comprehensive set of skills skills and abilities than need to be built over rest of his long pure time especially in all markets where infrastructure still very on the device
spk_32: and especially in southeast asia where the market as diverse and their individual many individual market collectively these a large opportunities for you have to clunkers out one by one and every markets has it's own environment it's own setting it on the climates therefore we believe red need in the sense as with able to achieve strong watch and leadership market by markets across so many markets in southeast asia and the same time quick turn around of profitability and that gives us confidence that we have more resources and capability not fat not just financially but also operationally and manager early to defend our ecosystem against any future competition and will remain humble and really vigilance or competition
spk_33: or next question comes from a leash or yep from citigroup please go ahead
spk_21: hi and thank you could evening management or congrats on the strong results on and also thanks for taking their questions on i have two questions first is i wanted to follow up on the previous questions regarding how should we balance between the gulf war searched the prophet big
spk_1: eighteen instead he shot on margins target debt management would hope to maintain our for in shock episode set month for example if there's an increment all margin improvement that you can or chief you moving best don't incremental back to the fifth us to drive faster growth because he argued unprofitable on false know for example the shopping and the tfs son just wondering you set a short time margin target that no one that to maintain and then an incremental that you can bring fact back to the business to drive faster
spk_23: on second is on your teachers are finance services given will be rolling out the to panels english eighty six soon or would that affect your or if it off profit did it and twenty four twenty twenty three and two
spk_34: did ya your shit
spk_1: hm so far shorter margin targets so different business units are defense of course for greener are also guess now is continue to stabilize or user base and provide a better experience our users according to the same time
spk_35: continue to improve of profit margins are i mean of
spk_36: one of forty seven percent or even images were we believe that we're still verify compared to the industry average answer we have shown ability to see their high margin for the fitness before and will continue to be very or watch your march and closely to to to improve on fisher see
spk_21: ah in terms of that to show financial services
spk_24: i think region
spk_21: so it's there only thing we just turn to foster thought for
spk_1: sort of i will continue to expand although off you know service
spk_21: stop it's all free to our users of so that so we can be sure bought a user base and of of more diversified services he answers and for the the focus on that fitness is more on of qualities and long term sustainability and trust building with on uses not to us
spk_1: but at this stage a seat driven business we proceed zoning a solid foundation never dreamed that ecosystems advantages to has been part of a c ecosystem was that stuff synergies was shopping center to learn is the most important thing as it stage
spk_24: and for sharpie it's going to be on spotted by market dynamics assessments all asian markets are complete he was a pastas
spk_37: now brazil market which is of you always seeing significance profitability
spk_1: oh the country to see flows the struggles of say it's unfair to our asian markets so i think it's going to be a highly dynamic process for each market said any purity fun will assess the market conditions on the natural user those rates competitive landscape at our operational costs structure in that market and i will assess what would be a reasonable profit margins we could succeed in the market versus a blown we want to cheat in a market as i said before
spk_21: that not a necessary the trade off is a business is both is driven only by investments in sales market it's not a good business wanna be to begin with and the fact that was able to cut sales marketing by one than fifty for several sustaining gmb already itself is strong testaments of the our ecosystem
spk_29: the capability
spk_1: so it doesn't matter if go against each other we don't necessarily think that flows and profitability you to be a trade off we do think that was some some other measures that were focused on such as cost structure in presents logistics improvement sell a management
spk_21: consumer services and better fire experience although improve efficiency of any investment making to else ecosystems and also into the faucet ability as was false
spk_38: it's a lot of it depends on dave natural
spk_1: most the macro environment competitive landscape
spk_0: tens of operational stage substance abuse at any pure time being a market like market assessments we don't have a single number for shopping as a whole it
spk_39: oh to be a lot of a follow up and benson said dynamic assessments and fine tuned operations that's the trick of the business but also i think a wretch of stress operating a highly diversify diversified mark his answer was different development strategies i think overall we even and of course we believe in sustainable growth which also be profitable girls of what a business and we still see this as a our struggles and
spk_1: or next question comes from players chaudhry from hsbc please go ahead yeah thanks for the opportunity and congratulations to management on strong for the wizards to questions for sli on shop he can you discuss the gym regrow trends quarter on quarter of local currency which markets are doing for to arm and any good
spk_17: or and outlook for twenty three you know how is customer behavior shipping with choppy reducing promotions and shipping for pretty i observed that your theory has increased by around twenty two percent in local currency don't talk for what is driving part
spk_1: secondly can you give some insight on your two picks for twenty twenty three
spk_24: which segments would you be investing and our what kind of investments we should expect and into the twenty three to strip the news or ecosystem thank it
spk_1: they you finish it up so fast in germany close friends as we previously shared on that gm he remains at output for us for it's not to the tpp are asleep had to just focus on of touch any all efficiency and
spk_17: and profitability as as his experience all think it would miss joly naturally calm down the road
spk_1: so in terms of a different markets
spk_24: generally speaking of asian market reform would you it's cetaceans and to for me a relatively small markets in some salsa the demand by or buyers and consumption thousand songs however be aware of
spk_1: that continue weakness in all cynical consumption by users across various markets
spk_29: enter in particular some of the marcus like malaysia is so we've previously also shared for remain relatively in terms of young here comparison of probably particularly said as a soul of and but of course previously during a covert said some of these
spk_1: market also happen to enjoy stronger than the most spectacular growth during the cold it so this remains tough comparison
spk_21: i think just starting farm twenty three so we'll jury to see some
spk_25: what's what's the some both with hopefully up on the other hand this is not something that's so we focus on answer the or uncertainty remains and so there are too many factors sexy
spk_1: so underlying consumption patterns that stuff as the market leader that we will face and therefore it's not a target so we focus on so a message states the seem to be roommates output and we will just continue any on quarter disclosure of operate metrics like to envision orders and so will move to endure disclosures in ourselves global peers
spk_22: in terms of ah to pass for twenty three most of a tea pots
spk_24: in terms of those is the biggest sas
spk_21: ticket items or servers and sir
spk_0: and then followed by some of the logistics deleted machinery such as sorting machine
spk_40: and then saw officers said it as and elite as cetera now as we serve it to a strong focus on efficiency we also have been significantly reduces answer tightening or will keep past investments so you still saw some two packs to for and may country to see into one or the to see father going forward accents at these in an immediate future
spk_1: effect spending shouldn't be a significant part of our expenses
spk_21: the reason that we might still have some hundred number into foreign to one is because order commitments as we shared a the previous quarters earnings some of the odor commitments of might arrive at her to for or to one time table and that is not entirely within a console answer that and that might affect our financial so it's a times faster
spk_24: the next question comes from tommy chong from jeffries please go home
spk_21: i gave a big numbers management navigate my crushes are the question in our own mercury not alter your comment about our the from are train or be a fool out of all of a game of be the most it's never get some comment about are the be have any new games or that we should be
spk_41: anticipated up with this year
spk_1: ah my second question argues about all the people had come all trimming the german comments about i'm still have had problems are being too literally to and how we should think about are trying to trying to break out if rewards are on to the hiring of friendship
spk_24: thanks thomas in terms of sales a pipeline
spk_42: now as as year old submitter with us or we don't discuss games that the has not been or property launched
spk_23: into a cvs see we mentioned that says we have some such as on door
spk_1: as being tested sensor might get released as this year and them for they're always games in the sidebar
spk_22: we're so good
spk_43: the author boy family
spk_1: the key focus in a get funds still on the club games and subject to flee fire so we want to turn into a strong evergreen centuries
spk_17: although we want to to see some we cities
spk_1: use for friends
spk_44: in comparison to
spk_45: a significant was achieved during the cold it's time we do believe that there is a core defensible uses this weekend she's and is a long lasting franchise
spk_1: there are a lot of things that seem a family two weeks and focusing on with the best talent and some of the of the top creative people we saw to deliver a studies experience more accessible think package much sessions downloading and also in terms of
spk_21: contents
spk_24: that is so more suitable for our users and and more interesting to dump salt even despite there are many years of experience of same distance
spk_21: so we think that still does the focus in the immediate future at the same time cause you to form our core competencies the costa masa for genres
spk_24: there we have strong experience in and country to observe and opportunities and my life in the market and pick up new skills and new trends along the way
spk_1: so long game is some us
spk_46: financial perspective we saw some with twins that immediately
spk_1: we are summer organizational perspective as ducks fourteen were very focused on games in the long run
spk_21: because it is the closest to the younger generations
spk_29: and we've already have a very strong and big platform see scientists despite it's a recent beginning don't want the largest mobile game in the world
spk_1: and with very large estates and highly effective spent a lot hundred eighty with us so we could do a lot of things were done and engage them much better and also did have a new content to themselves
spk_21: so this is something that don't have very much focused on the will not give up on
spk_24: in terms of us at tom management style we had some sitcom exercises as we shared these are in relation to the operational changes we've made such as market as follows
spk_25: project closures are the part sizing up the shade is as a child while we didn't have any particular target
spk_0: have a
spk_47: x percentage of to to plot for a while number of teams that's not a whole wheat to a pet health exercises some so i think we also believe that says with does successful completion of the major som changes that we undertook in the past few months we believe under the current bomb and absent any major shifts in our external conditions set to our major changes have completed and we don't have to do not see our major changes more major changes in this year
spk_23: and answer and in the foreseeable future
spk_1: or next question comes from jong shell from barclays please go ahead thank you very much for taking our questions i have to as well
spk_24: the first these are about brazil or will you be able to talk about the older growth your year old quarter reporter for brazil and also you cut the pro the laws the drastically which is great from my two bucks a year ago to now less and fifty cents could you talk about the drivers behind that and do you have any explanation for breakeven in brazil
spk_1: i'm a second question is about take great again my calculations years the take rate is now of of ten percent are you have made a progress in take read every single quarter or the last few years i was wondering you have a target like for continued improvement for take you a this year thank you very much thanks to trump up into south
spk_21: brazil markets of we've managed to make significant gate
spk_1: efficiency operations and also are partly as a result of our scale he said sir
spk_21: there is it's efficiency jane fonda industries on the scale
spk_23: drivers behind
spk_1: soft adoption or a lot for order similar to our other asian markets claim fumbles top like little as well as of costing for a particular logistics thought that the we're very focused of recently on reducing
spk_17: for all users so that says so
spk_1: more under arrest assessments profitability sustainably don't download this will be also says in the near farms and so while we don't give any projection of guidance on break even sign we also do think oh markets in brazil can also world profitability over the long well odds of the another significant opportunities that we should be able to capture and and another thing is as leave shared before far the reason we're very focused on costs structure and surgically logistics is because we are trying to expand profitable town claflin mark as a whole like addressing sellers and buyers while underserved will offer to as by existing players and says having a better structures have a more target focus on the mass market allow us to be a differentiated player
spk_24: in the market capturing his as they can share of sites in our view
spk_0: now in terms of the take rate
spk_48: so we do believe
spk_40: there is still a roomful extensions on take rates than just like as his own view about every markets are would do it in a measure taste of ways
spk_48: ten so strong indication of sellers answer as a sophomore roast and as me as sellers grow with us and mess more often what state are growing their business
spk_49: the overtake creating the brazil markets as you probably know
spk_40: obviously material is higher than many other markets
spk_50: he answered of course some was services be delighted to the brazilian sellers and buyers us a real some of us do before structural differences in a market some therefore we believe this is a strong markets and so we do focus on growing the bucket
spk_1: the next question comes from rude or hoosier from credit suisse please go ahead you hire thank you for the opportunity ungulates on voting for for people who are good too few questions for storm good giving sites
spk_51: if you look at your revenues right now or just for the book includes just six percent are both prevent the mclaren and me for the could use a refund the on the gritty person to how with things like most of girls benefit from the pandemic seems to be have window by the fourth quarter abuse he both
spk_1: did i wish you know on the gaming side note of they're using the still more had been calling from the that second sticking to a gaming site if you can get some some color longer seems to england now didn't decide how many people are dead or not and besides good between new game development and was his on sleep either her and thirty again on the didn't offer any update on the right to force diffuser that he had the sense and communion this year the last me on e commerce we forgive some gonna qualitative or some numbers on it can cost coughlin caught because he have been historically giving some commentary on the it's que cost for the homeless a while this quoted as admits come increases as wanna see how does that cost of turned it into small to thank you thank you
spk_23: ha ha
spk_52: jamie i think it's still too early to tell us
spk_24: the trends are obviously kobe is a such a unprecedented event know the headset any data on it
spk_53: answer
spk_1: and also reopening together with inflation
spk_24: that had double headlines on people says it's special discretionary consumption followers officer fun of compounding the insects and we are seeing and therefore it's a premature so as to suggest
spk_54: well said
spk_1: being transferred to it went by the we have seen in a move okay swiss long shelf life have seen also revival when they have the like contents and a decent right time and will receive a decide users
spk_25: so that can be achieved of course with
spk_1: lot creativity and efforts and as long as is just as far as it is we won't be able to give guidance on the initial plans short term friends and it's pointless and ten so far i'm the end
spk_21: relationship with ten cents
spk_0: oh i find the well as same time we have
spk_55: been focusing on concentrating or resources and shared oh yes the divesting such as sir
spk_48: sarge i say
spk_55: non profit that pharmacy initiated the same time
spk_48: moving to fall to was more focused on the cool khwaja pharmacies ones at alamo down the road therefore they're off shifts in stopping
spk_56: a long meeting a very strong i see
spk_55: intensify relationship with sensex the also are there has not been any change in a relationship
spk_24: on opted to cost trends are also tended to what i said
spk_1: in terms of efficiency game he said he manage to costs and so there
spk_24: from the south as well
spk_1: the next question comes from rogen sharma from jp morgan please go ahead i agree real you for the presentation or two questions from my side closely on book on the coast sides and to city video farm had there been any seven scores are accounted for this period
spk_23: and the course optimization initiatives that you've done how should we think of our indians yeah cause
spk_21: and devoted to his he was sort of agree to
spk_1: secondly on on on the front side or the moon book is down from to uphold the fourth quarter
spk_21: are considering your comments round of muscle had runes and
spk_1: which clouds outlook
spk_22: how should we think of the loan to clog looking forward to
spk_21: thank you
spk_57: i'm not into a sub saharan
spk_1: in fact i'm not being very significant sent i think that's comparable to the previous quarter
spk_0: we don't seem to the material
spk_1: so there was no separate disclosure of we don't think that you'll also have any mature incest or twenty three financials
spk_0: in terms of the i'm and or journey costs in this year we continue to focus on efficiency improvements and tied to needs answer
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