Garena's Recovery: Analysts Eye Growth Amid Risks

Garena seeks recovery as user base stabilizes. Analysts suggest cautious optimism, but reliance on Freefire raises concerns for investors.

Date: 15-03-2025

AI Rating: 6

Earnings Overview
Although specific Earnings Per Share (EPS) data is not provided, the report highlights that Garena generated $1.2 billion in adjusted EBITDA in 2024, demonstrating strong profitability despite the challenges faced in recent years.

Revenue Growth
In terms of revenue growth, Garena has shown improvement with a 19% increase in bookings. This growth reflects a rebound from previous lows, indicating potential for future revenue increases.

Net Income
The report does not specify net income figures, but the adjusted EBITDA of $1.2 billion suggests healthy profit levels, which could positively impact investor sentiment.

Profit Margins
While direct profit margins are not disclosed, the strong adjusted EBITDA indicates that Garena is maintaining its ability to generate profits despite market fluctuations.

Free Cash Flow (FCF)
The report does not provide insights into Free Cash Flow, but given the strong adjusted EBITDA, it is possible that cash flow remains stable in the organization's recovery phase.

Return on Equity (ROE)
No data regarding Return on Equity is present in the report. Monitoring this metric could be crucial as Garena looks to sustain its growth and appeal to investors.

Conclusion
In conclusion, while Garena has shown signs of recovery with improved user engagement and booking figures, its heavy reliance on the game Freefire presents a risk. Investors may wish to keep a close watch on future developments in game diversification and revenue sustainability.

Stocks: SE