Razer Plays Down Impact of E-Wallet Shutdown as Revenue Soars
(Bloomberg) -- Gaming peripherals maker Razer Inc. played down the impact the closing of its e-wallet service will have on revenue, saying the effect will be modest.
The company informed the 1.1 million Razer Pay users this month of its decision to end the service, three years after launching it. Razer had debuted Razer Pay in 2018 after partnering with Malaysia’s Berjaya Corp. and unveiled its ambition to roll out the service to other countries in Southeast Asia. It later expanded to Singapore.
“E-wallet is a business that requires a huge amount of” cash burn, especially in Southeast Asia, Lee Limeng, chief strategy officer of Razer, said during a conference call on Wednesday. The company decided to focus on business-to-business since more than 95% of Razer Fintech’s total processing value is driven by merchants, Lee said. “Will there be an impact? It’s very minimum.”
Razer on Wednesday reported first-half net income of $34 million, compared with a loss of $17.3 million a year earlier. Revenue rose 68% to record $752 million.
More on earnings: Razer 1H Revenue $752.0M Vs. $447.5M Y/y
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