Jakarta, CNBC Indonesia – When PT GoTo Gojek Tokopedia Tbk (GOTO) technology shares were sluggish, two foreign corporate investors were observed buying up GOTO. The two giant foreign corporations, namely JPMorgan and Nomura Holdings Inc.
On Tuesday (19/3/2024), JP Morgan accumulated 787.28 million GOTO shares. Thus, the company’s share ownership increased to 1.84 billion shares or the equivalent of 0.16%.
In fact, before GOTO released its financial report, JPMorgan was observed selling 652 million GOTO shares on Tuesday last week (12/3/2024). In this way, JP Morgan’s ownership shrank to 1.05 billion or 0.09%.
JPMorgan’s action last Tuesday was also imitated by Nomura Holdings by buying up 103.16 million shares. However, last week, fund It was observed that foreigners only owned 1.73 million GOTO shares. Currently Nomura’s total GOTO share ownership is 143.82 million or the equivalent of 0.01%.
The purchase of shares by the two foreign funds responded to the company’s financial report which experienced positive improvement, even though GOTO shares have tended to be sluggish in recent days.
Throughout 2023, GOTO recorded a loss of IDR 90.5 trillion for the entire year 2023. This loss was triggered by the recording of a reversal in value goodwill (goodwill reversal) worth IDR 78.8 trillion as required by applicable financial accounting standards.
Quoting the official statement, this is the impact of the Tokopedia and TikTok transaction which resulted in the loss of GOTO control over Tokopedia starting February 1 2024.
“Losses resulting from the reversal of the value of goodwill are non-recurring (non-recurring“), non-cash, and has no impact on the Company’s adjusted EBITDA or cash flow,” wrote management, Tuesday (19/3/2024).
However, the company continues to reduce cost to serve On-Demand Services business unit, as well as continuing to expand the reach of superior products to various cities. This is done to reach users on a massive scale while maintaining driver partner income.
“This step encourages an increase in the number of new users as well as the reactivation of inactive users (dormant users),” he said.
As is known, in December 2023, GoTo and TikTok announced a combined strategic partnership platform Tokopedia and services e-commerce TikTok in Indonesia is under PT Tokopedia, with TikTok as the controlling shareholder in that entity.
As part of the agreement finalized in January 2024, TikTok will invest more than US$ 1.5 billion in the new entity in stages, with no subsequent dilution effect for GOTO. GOTO will also receive revenue from Tokopedia in line with the company’s scale and growth.
This business is a source of income for GoTo, with costs e-commerce which the Company will receive every quarter, in line with the scale and growth of the new Tokopedia entity.
Apart from that, GOTO has finally succeeded in reaching profitability after 14 years of operation. This is reflected in the Group’s adjusted EBITDA achievement which was recorded at positive IDR 77 billion in the fourth quarter of 2023 or in the last three months of last year.
This achievement reversed from the fourth quarter of 2022, where the company still recorded an adjusted EBITDA of minus IDR 3.14 trillion.
Thanks to the achievements in the fourth quarter, throughout 2023 GOTO was able to improve its performance significantly with full year adjusted EBITDA of minus IDR 3.67 trillion, much lower than the previous year which was recorded at minus IDR 16.01 trillion.
In its official release, GOTO revealed that adjusted EBITDA is basically a non-Statement of Financial Accounting Standards (PSAK) financial measure.
This measure has a loss component before income tax and adjusts for depreciation and amortization expenses, financial income, interest costs, and the calculation of losses for impairment of investments in associated entities.
Adjusted EBITDA is one of the profitability parameters of startup issuers because it is a proxy closest to operating cash flow or operational cash flow.
Achievement of the GOTO inline with a number of analysts predicting that GOTO could reach levels adjusted Positive EBITDA without requiring further capital injection.
Meanwhile, in trading last Wednesday, GOTO shares closed down 9.72% to Rp. 65/share. GOTO shares have again touched the psychological level of IDR 60 per share, after remaining at the psychological level of IDR 70 per share for the last few days.
CNBC INDONESIA RESEARCH
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(chd/chd)
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