0847 GMT - Sea's digital entertainment arm Garena is likely to continue notching strong growth in videogame bookings, fueled by artificial intelligence, says DBS's Sachin Mittal in a note. The company's 2Q videogame bookings rose 23% on year and outperformed global peers. The mobile gaming division's research and development costs have declined in recent quarters, thanks to AI-assisted coding and automated testing, which accelerates game development cycles. Sea now expects 2025 videogame bookings to grow more than 30%, following collaborations with popular franchises such as Netflix's "Squid Game." This implies some upside to consensus booking growth estimates of 31% for 2025 and 9% for 2026, Mittal adds. He maintains his buy rating and target of $204 on Sea, which last traded at $177.28. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
August 18, 2025 04:47 ET (08:47 GMT)
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