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Bloomberg
GoTo Group reported a narrower third-quarter loss, helped by cost cuts at the Indonesian ride-hailing and e-commerce giant.
The adjusted loss before interest, taxes, depreciation and amortization shrank to 3.7 trillion rupiah ($235 million) from 4.2 trillion rupiah a year earlier, the Jakarta-based company said Monday. Net revenue, which strips out incentives to driver and merchant partners and promotions to users, tripled to 4.6 trillion rupiah, a sign that appetite for online services keeps increasing in Southeast Asia’s largest economy despite accelerating inflation.
GoTo is trying to convince investors of its profit-making potential after its shares lost 38% since its initial public offering in Jakarta early this year. The company, formed through a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, said last week it’s cutting 12% of its workforce, or 1,300 jobs, as it braces for a challenging economic climate.
GoTo is confronting the effects of stiffer competition, economic slowdown and heightened investor focus on profitability. The risk of customers becoming more budget-conscious in the face of an impending recession has triggered job cuts, closures of business units and other measures across the tech industry.