Throughout 2022 Three Pillars Of GoTo's Business Grow Positively, Business Fundamentals Continue To Strengthen

Illustration. (Photo: Doc. Antara)

JAKARTA - In the midst of stressful macroeconomic conditions and challenges, the fundamental of PT Goto Gojek Tokopedia Tbk (GoTo) continues to improve. All indicators of the company's performance in the fourth quarter of 2022 experienced a significant growth trend.

The three pillars of GoTo's business, namely On Demand Services, E-Commerce and Financial Technology Services, recorded a significant increase in gross revenue. This condition is in line with GoTo's optimism to achieve a positive adjusted EBIDTA by the end of 2023 and positive cash flow.

The release of GoTo's indicative performance presentation published today revealed that in the fourth quarter of 2022 alone, gross revenue from the On Demand Services segment grew 13 percent to Rp3.7 trillion compared to the same period in 2021 of Rp3.3 trillion. Meanwhile, throughout 2022, the growth was even higher, reaching 32 percent from Rp10.3 trillion in 2021 to Rp13.6 trillion.

The growth rate of the E-Commerce segment is also in line with the Indonesian economy which continues to strengthen. Tokopedia has succeeded in optimizing Christmas and year-end momentum to encourage consumer transactions.

In the fourth quarter of 2022, gross revenue from this segment reached IDR 2.4 trillion, up 24 percent compared to the same period in 2021 of IDR 1.9 trillion. If annualized, Tokopedia's gross revenue reached IDR 8.6 trillion, up 38 percent compared to 2021 of IDR 6.3 trillion.

The improvement in the performance of the E-Commerce segment was driven by an increase in added value services that were present in traders' applications and the growing performance of advertising services. In the fourth quarter of 2022, Tokopedia took the rate to grow to 3.4 percent of the total Gross Transaction Value (GTV) which reached IDR 70.8 trillion.

Business optimization in the Financial Technology Services segment is also positive. This can be seen from the rate of gross revenue throughout 2022 which reached IDR 1.7 trillion, up 43 percent compared to 2021 of IDR 1.2 trillion. The gross revenue of this segment in the fourth quarter of 2022 contributed up to IDR 500 billion, up 28 percent compared to the fourth quarter of 2021 of IDR 400 billion.

In its official release, GoTo management explained, customer loan products from the Financial Technology Services segment grew by 40 percent in the fourth quarter of 2022 on an annual basis or year on year (yoy). Meanwhile, in the same period, the quality of GoPay subscribers continued to increase, where average customer spending grew 32 percent.

In the future consumer lending is expected to be the main driver for monetization of Financial Technology business units. GoTo Financial will continue to increase loan book prudently and develop GoPay as an electronic wallet that provides convenience and reduce payment barriers for transactions inside and outside the platform," wrote GoTo's official release, Monday, March 20.

Total Lo, GoTo Group Finance Director said, throughout 2022 his party will continue to record consistent growth amid macroeconomic uncertainty, along with comprehensive load management, through the implementation of structural efficiency in all parts of the organization.

"With a solid cash position, the company believes that we will achieve positive operational cash flow, in line with the acceleration of steps towards profitability targets this year," said cap.