Indonesia's GoTo reports significant drop in Q3 underlying losses

Indonesia’s GoTo reports significant drop in Q3 underlying losses

November 1, 2023

By Stefanno Sulaiman

JAKARTA (Reuters) – Indonesia’s biggest tech firm PT GoTo Gojek Tokopedia reported 942 billion rupiah ($59.30 million) in underlying losses for the third quarter, a significant drop from last year’s 3.7 trillion rupiah, the company said on Monday.

The results came after the company reached a positive contribution margin since beginning of this year amid cost-cutting measures.

“This was underpinned by a reduction in operating expenses as we eliminated redundancies and leveraged our technology to reduce costs,” GoTo Group CFO Jacky Lo said in the statement.

GoTo, which offers ride-hailing, e-commerce, and financial services, said its net losses for the period were at 2.4 trillion rupiah, a drop from last year’s 6.7 trillion rupiah.

The group still aims to make a profit by end of this year, it added.

Indonesia's GoTo reports significant drop in Q3 underlying losses — Employees pack goods at Goto’s e-commerce unit Tokopedia’s warehouse in Jakarta, Indonesia, August 31, 2022. REUTERS/Ajeng Dinar Ulfiana

GoTo, backed by Japan’s SoftBank Group and Singapore’s sovereign wealth fund GIC, also said in the statement it will not pursue an initial public offering in the international markets at the moment as it has enough cash needed for its operations.

($1 = 15,885.0000 rupiah)