Gaming Business Drives Bukalapak's Net Income Growth Throughout 2023

PT Bukalapak.com Tbk (IDX: BUKA) gained total net income of IDR 4,43 trillion throughout 2023. As stated in the summary of its financial report, the item sales business Gaming became the main contributor to BUKA's revenue growth of 23% (YoY).

• BUKA said it had obtained it core earnings amounting to IDR 42 billion in 2023, from a loss position of IDR 2,3 trillion in 2022. Core earnings calculated as net profit excluding gains/losses on investments, FX, goodwilland non-recurring items.
• However, overall, BUKA experienced a net loss of IDR 1,36 trillion in 2023 from a profit of IDR 1,98 trillion in the previous year.
• Adjusted EBITDA throughout 2023 shrank from a loss of IDR 1,2 trillion in 2022 to a loss of IDR 475 billion in 2023. This is in line with BUKA's realized loss target of IDR 525 billion.
• General and administrative expenses were recorded to have decreased by 47% to IDR 1,3 trillion thanks to cost efficiency strategies through technology investment.

BUKA has a number of divisional focuses, including: marketplace, partner, Gaming, O2O retail, and financial services. Revenue contribution from the line market place recorded an increase of 47% (YoY) to IDR 2,3 trillion in 2023. Then, O2O revenue rose 11% (YoY) to IDR 2,1 trillion in the same period. Meanwhile, the O2O business contributed 54% of the group's total revenue in the fourth quarter.

The company revealed that O2O growth was driven by the expansion of its products and services in line with BUKA's efforts to increase penetration all-commerce and digitalization of micro retail stores offline.

Meanwhile, contribution margin marketplace rose 35 basis points to 0,77%. O2O contribution margin rose 29 basis points from minus 0,32% to minus 0,03%. The overall total contribution margin reached 0,32% or increased 30 basis points to 0,02%.

"We have platform strong for growth with existing opportunities in the Partner business, Gaming, and our e-retail. "We are focused on capturing the Company's growth opportunities, increasing the sustainability of our revenues, and targeting strong results in 2024," said Bukalapak President Teddy Oetomo in his official statement, Saturday (23/3).

This year, BUKA is targeting revenue growth of around 15%-20% to IDR 5,1 trillion-IDR 5,3 trillion. The company targets to achieve positive adjusted EBITDA higher than IDR 200 billion.

Last year, BUKA said it was focusing on encouraging digital products and Gaming managed by its subsidiary, marketplace "my items". This is because this business line has strong transaction growth on a quarterly basis (QoQ).

As of the end of 2023, Bukalapak has capital of IDR 19,3 trillion from cash, cash equivalents and liquid investments which include government bonds and mutual funds.