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Straits Times
a day ago
- Business
- Straits Times
Gojek owner GoTo posts fourth straight adjusted profit, helped by cost cuts
Sign up now: Get ST's newsletters delivered to your inbox Gojek-owner GoTo is making progress with reining in expenses and boosting revenue amid stiff competition in ride-hailing and delivery. Singapore - Indonesia's GoTo Group notched a fourth consecutive quarter of adjusted profit, making progress with reining in expenses and boosting revenue amid stiff competition in ride-hailing and delivery. Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) were 427 billion rupiah (S$33.9 million) for the second quarter, GoTo said in a statement on Aug 13. That compares with a pro-forma loss of 64 billion rupiah a year earlier. Net revenue, which excludes incentives to driver and merchant partners and promotions to users, climbed 23 per cent on a pro forma basis to 4.3 trillion rupiah. Gojek-owner GoTo has been making strides in its effort to cut costs and prove to investors it can make money. The company has slashed jobs and shuttered business units as user growth cools and competition from Singapore's Grab Holdings and smaller regional rivals weighs on margins. Investors remain cautious, with GoTo's stock price down about 80 per cent since it went public in Jakarta in 2022. Still, the shares have advanced more than 20 per cent over the past 12 months as GoTo's earnings have showed signs of improvement. In a move that would upend the regional market, Grab has been weighing a takeover of GoTo at a valuation of more than US$7 billion (S$8.9 billion), Bloomberg News reported. Still, Grab has played down a potential deal, saying in June it's not in talks to buy GoTo 'at this time.' In a bid to accelerate cost savings, GoTo handed over its loss-making e-commerce unit Tokopedia to ByteDance's TikTok in a US$1.5 billion deal. The company also exited Vietnam to concentrate on achieving profitability in its core markets of Indonesia and Singapore, while pushing into growth areas like consumer lending. The company reaffirmed it expects to post adjusted Ebitda of as much as 1.6 trillion rupiah for the full year. Top stories Swipe. Select. Stay informed. Asia India, Singapore ministers discuss deeper tie-ups in digitalisation, skills, industrial parks Business More seniors remain employed after retirement and re-employment ages raised in 2022: MOM study Singapore askST: Public bidding possible if assets seized in $3b money laundering case are sold at auction Singapore 2 dead after fire in Jalan Bukit Merah flat, about 60 evacuated Sport PSG beat Tottenham on penalties to win Uefa Super Cup Singapore TB screenings at two pre-schools after staff member diagnosed in July Business Haidilao to close Clarke Quay outlet on Aug 31; exit follows 3 earlier outlet closures Opinion How to train a drone warrior, with lessons from Ukraine What Bloomberg Intelligence analyst Nathan Naidu said: 'GoTo's e-commerce, once a key top-line driver, has taken a back seat after it sold 75 per cent of that business to ByteDance's TikTok Shop. GoTo earns e-commerce fees from that deal at no incremental costs. 'Fintech should expand more as a closer tie-up with TikTok fuels its buy now, pay later loans, while it continues to lead in Indonesian on-demand services.' BLOOMBERG
Business Times
2 days ago
- Business
- Business Times
GoTo posts fourth straight adjusted profit, helped by cost cuts
[SINGAPORE] Indonesia's GoTo Group notched a fourth consecutive quarter of adjusted profit, making progress with reining in expenses and boosting revenue amid stiff competition in ride-hailing and delivery. Adjusted earnings before interest, taxes, depreciation and amortization were 427 billion rupiah (US$26 million) for the second quarter, GoTo said in a statement on Wednesday (Aug 13). That compares with a pro-forma loss of 64 billion rupiah a year earlier. Net revenue, which excludes incentives to driver and merchant partners and promotions to users, climbed 23 per cent on a pro forma basis to 4.3 trillion rupiah. GoTo has been making strides in its effort to cut costs and prove to investors it can make money. The company has slashed jobs and shuttered business units as user growth cools and competition from Singapore's Grab Holdings and smaller regional rivals weighs on margins. Investors remain cautious, with GoTo's stock price down about 80 per cent since it went public in Jakarta in 2022. Still, the shares have advanced more than 20 per cent over the past 12 months as GoTo's earnings have showed signs of improvement. In a move that would upend the regional market, Grab has been weighing a takeover of GoTo at a valuation of more than US$7 billion, Bloomberg News reported. Still, Grab has played down a potential deal, saying in June it's not in talks to buy GoTo 'at this time.' 'GoTo's e-commerce, once a key top-line driver, has taken a back seat after it sold 75 per cent of that business to ByteDance's TikTok Shop. GoTo earns e-commerce fees from that deal at no incremental costs,' said Nathan Naidu, analyst for Bloomberg Intelligence. 'Fintech should expand more as a closer tie-up with TikTok fuels its buy now, pay later loans, while it continues to lead in Indonesian on-demand services.' In a bid to accelerate cost savings, GoTo handed over its loss-making e-commerce unit Tokopedia to ByteDance's TikTok in a US$1.5 billion deal. The company also exited Vietnam to concentrate on achieving profitability in its core markets of Indonesia and Singapore, while pushing into growth areas like consumer lending. The company reaffirmed it expects to post adjusted Ebitda of as much as 1.6 trillion rupiah for the full year. BLOOMBERG
Business of Fashion
14-05-2025
- Business
- Business of Fashion
Sea Profit Tops Estimates as Online Shoppers Keep Spending
Sea Ltd. reported profit that topped analysts' estimates, a sign that the Southeast Asian e-commerce leader is holding up well against fierce rivals TikTok and Lazada. The company's American depositary receipts jumped as much as 8.4 percent in New York after Sea reported net income of $410.8 million for the first quarter through March, compared with a year-earlier loss. Analysts predicted $353.4 million on average. Sales climbed 30 percent to $4.84 billion, roughly in line with estimates. The results suggest online retail arm Shopee is having success fending off ByteDance Ltd.'s TikTok and Alibaba Group Holding Ltd.'s Lazada across Southeast Asia. Newer contenders like Shein and PDD Holdings Inc.'s Temu are also targeting the region of more than 675 million people, where more shoppers are moving online. In a display of its strength, Shopee has been steadily raising the commissions it charges merchants in many core markets by about a third since the start of last year. The hikes, which bring Shopee's fees far above its rivals, show that Sea is confident it can attract and retain merchants, helped by a broad user base and well-established delivery services. Shopee's first-quarter revenue rose 28 percent to $3.5 billion. Meanwhile, Sea's aggressive cost-cutting drive, including thousands of job cuts, has helped the company pad its bottom line. Shopee's sales and marketing expenses as a percentage of its gross merchandise volume contracted, reflecting the cost reductions. Besides the tough competition, Sea's challenges include US-imposed tariffs that could hit the fragile economies of the emerging markets where it operates, souring consumer sentiment. While the company has curtailed its international expansion, it's grown in markets such as Brazil to diversify its customer base. Sea is also betting on new initiatives in areas from digital finance to logistics to convince investors of its long-term earnings potential. Its finance arm — now known as Monee — has overtaken its gaming arm in terms of revenue. What Bloomberg Intelligence says Sea's high-margin advertising services and logistics strength should further improve earnings at its e-commerce segment. Its use of generative AI to improve product discovery should convert more platform visitors into buyers. That would raise the appeal of its ecosystem to merchants looking to place ads. Its well integrated, first-party logistics enable it to deliver orders in two days or less in its home market of Southeast Asia, an edge that could extend to Brazil. That would help Sea defend against TikTok's plan to expand e-commerce in Brazil, says analyst Nathan Naidu. By Olivia Poh Learn more: Shopify Sees Second-Quarter Revenue Above Market Estimates The Ontario-based e-commerce company forecast second-quarter growth in the mid-twenties percentage range.
Yahoo
13-05-2025
- Business
- Yahoo
Sea Profit Tops Estimates as Online Shoppers Keep Spending
(Bloomberg) -- Sea Ltd. reported profit that topped analysts' estimates, a sign that the Southeast Asian e-commerce leader is holding up well against fierce rivals TikTok and Lazada. A New Central Park Amenity, Tailored to Its East Harlem Neighbors What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration Lawsuit Challenges Trump Administration Policy on Migrant Children The company's American depositary receipts jumped as much as 8.4% in New York after Sea reported net income of $410.8 million for the first quarter through March, compared with a year-earlier loss. Analysts predicted $353.4 million on average. Sales climbed 30% to $4.84 billion, roughly in line with estimates. The results suggest online retail arm Shopee is having success fending off ByteDance Ltd.'s TikTok and Alibaba Group Holding Ltd.'s Lazada across Southeast Asia. Newer contenders like Shein and PDD Holdings Inc.'s Temu are also targeting the region of more than 675 million people, where more shoppers are moving online. In a display of its strength, Shopee has been steadily raising the commissions it charges merchants in many core markets by about a third since the start of last year. The hikes, which bring Shopee's fees far above its rivals, show that Sea is confident it can attract and retain merchants, helped by a broad user base and well-established delivery services. Shopee's first-quarter revenue rose 28% to $3.5 billion. Meanwhile, Sea's aggressive cost-cutting drive, including thousands of job cuts, has helped the company pad its bottom line. Shopee's sales and marketing expenses as a percentage of its gross merchandise volume contracted, reflecting the cost reductions. Besides the tough competition, Sea's challenges include US-imposed tariffs that could hit the fragile economies of the emerging markets where it operates, souring consumer sentiment. While the company has curtailed its international expansion, it's grown in markets such as Brazil to diversify its customer base. Sea is also betting on new initiatives in areas from digital finance to logistics to convince investors of its long-term earnings potential. Its finance arm — now known as Monee — has overtaken its gaming arm in terms of revenue. What Bloomberg Intelligence Says Sea's high-margin advertising services and logistics strength should further improve earnings at its e-commerce segment. Its use of generative AI to improve product discovery should convert more platform visitors into buyers. That would raise the appeal of its ecosystem to merchants looking to place ads. Its well integrated, first-party logistics enable it to deliver orders in two days or less in its home market of Southeast Asia, an edge that could extend to Brazil. That would help Sea defend against TikTok's plan to expand e-commerce in Brazil. -Nathan Naidu, analyst Click here for research (Updates with stock reaction in the second paragraph.) The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise ©2025 Bloomberg L.P.
Yahoo
13-05-2025
- Business
- Yahoo
Sea Profit Tops Estimates as Online Shoppers Keep Spending
(Bloomberg) -- Sea Ltd. reported profit that topped analysts' estimates, a sign that the Southeast Asian e-commerce leader is holding up well against fierce rivals TikTok and Lazada. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration The stock jumped as much as 10% in US pre-market trading after Sea reported net income of $410.8 million for the first quarter through March, compared with a year-earlier loss. Analysts predicted $353.4 million on average. Sales climbed 30% to $4.84 billion, roughly in line with estimates. The results suggest online retail arm Shopee is having success fending off ByteDance Ltd.'s TikTok and Alibaba Group Holding Ltd.'s Lazada across Southeast Asia. Newer contenders like Shein and PDD Holdings Inc.'s Temu are also targeting the region of more than 675 million people, where more shoppers are moving online. In a display of its strength, Shopee has been steadily raising the commissions it charges merchants in many core markets by about a third since the start of last year. The hikes, which bring Shopee's fees far above its rivals, show that Sea is confident it can attract and retain merchants, helped by a broad user base and well-established delivery services. Shopee's first-quarter revenue rose 28% to $3.5 billion. Meanwhile, Sea's aggressive cost-cutting drive, including thousands of job cuts, has helped the company pad its bottom line. Shopee's sales and marketing expenses as a percentage of its gross merchandise volume contracted, reflecting the cost reductions. Besides the tough competition, Sea's challenges include US-imposed tariffs that could hit the fragile economies of the emerging markets where it operates, souring consumer sentiment. While the company has curtailed its international expansion, it has grown in markets such as Brazil to diversify its customer base. Sea is also betting on new initiatives in areas from digital finance to logistics to convince investors of its long-term earnings potential. Its finance arm — now known as Monee — has overtaken its gaming arm in terms of revenue. What Bloomberg Intelligence Says Sea's high-margin advertising services and logistics strength should further improve earnings at its e-commerce segment. Its use of generative AI to improve product discovery should convert more platform visitors into buyers. That would raise the appeal of its ecosystem to merchants looking to place ads. Its well integrated, first-party logistics enable it to deliver orders in two days or less in its home market of Southeast Asia, an edge that could extend to Brazil. That would help Sea defend against TikTok's plan to expand e-commerce in Brazil. -Nathan Naidu, analyst Click here for research (Updates with stock reaction in second paragraph.) The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
