GoTo Considers Asset Divestment to Drive Performance

PT GoTo Gojek Tokopedia Tbk (GOTO) continues to tighten its financial belt in order to realize profitability. His party is currently exploring steps to divest assets which do not have a significant impact on the company's profits.

"We are considering divestment options in non-essential assets.core and investment portfolio. We will not make new investments that do not contribute to accelerating profitability," said GoTo Finance Director Jacky Lo in his presentation public expose GoTo, Thursday (8/12).

In addition to this, GoTo has prepared a number of strategies to reduce operational expenses and focus on customer quality and cost savings to achieve sustainable growth sustainable. Meanwhile, his party continues to continue its strategy of increasing monetization, incentives, to innovation to encourage customer commitment across various product lines.

"Our contribution margin and EBITDA showed solid improvement. On services on-demand"Our margins grew positively in the third quarter of 2022, two quarters faster than the performance guidelines set by the company," he said.

GoTo focuses on pursuing profitability by driving its core business which consists of five business lines, namely GotoPlus, GopayLater Cicil, GopayCoins, GoTransit and Gofood Hemat. last November, GoTo is cutting more than 1.000 employees to limit corporate spending.

Its stock performance has also continued to decline since its IPO last April. As of today, GoTo's share price was recorded at Rp. 87 from the initial initial offering price of Rp. 346 per share. Marketcapit fell in the range of IDR 103 trillion.

Loss of swelling

Based on financial statements in the third quarter of 2022, GoTo's loss was recorded to have increased by 32% to IDR 20,9 trillion from the same period the previous year which amounted to IDR 15,8 trillion.

Total transaction value (GTV) also grew 33% (YoY) to IDR 161 trillion. Net income shot up 206% to IDR 4,5 trillion from the same period last year of IDR 1,4 trillion.

GTV on service on-demand was recorded at IDR 15,7 trillion or 24% (YoY), while its gross income was IDR 3,5 trillion or grew 31% (YoY). Meanwhile, GTV e-commerce through Tokopedia rose 15% to IDR 69,9 trillion with a gross income of IDR 2,2 trillion. 

This growth is supported by take rate C2C business through implementation of a new commission scheme for C2C merchant partners, launch of a new platform fee scheme, and utilization value added service such as advertising and logistics.

As for the fintech segment, GoTo recorded growth in GTV and gross income of 78% and 48% (YoY) respectively. The company's initiative to expand the penetration of the GoPay digital wallet throughout the ecosystem has driven increased usage.

The company claims to be optimistic that it can realize positive service margins on-demand in the first quarter of 2023 and e-commerce in the fourth quarter of 2023. That way, GoTo can achieve a positive contribution margin in the first quarter of 2024.

"The improvement in operating margins is in line with the company's revenue growth which shows our business resilience and the strength of the Indonesian economy. This financial and operational performance achievement confirms that GoTo is on the right growth path as the largest digital ecosystem in Indonesia," said GoTo Group Main Director Andre Soelistyo.