John Hyungwook Choi's questions to Sea Ltd (SE) leadership • Q2 2025
Question
John Hyungwook Choi questioned the potential upside for the advertising take rate following its recent improvement and asked about the future investment required for logistics in Brazil and its impact on profitability.
Answer
Group CFO Tony Hou explained that ad take rate upside is driven by better algorithms and seller-facing products, with meaningful improvement still expected. Regarding Brazil logistics, he clarified the model is CapEx-light, with investments in sorting machines and hubs. He emphasized that expanding the logistics network actually helps EBITDA, noting Brazil has been profitable for several quarters despite high growth.