KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
GoTo Group, an Indonesian company, reported a significantly narrower quarterly loss after transferring its e-commerce business to TikTok, reducing costs and focusing on its primary ride-hailing service.
The company, competing with Singapore’s Grab Holdings Ltd in ride-hailing and food delivery, posted an adjusted loss of 48 billion rupiah (RM13.58 million) before interest, taxes, depreciation, and amortization (Ebitda) for the three months ending June. This compares to a pro forma loss of 885 billion rupiah a year earlier.
GoTo is concentrating on profitability as user growth slows and competition from Grab and smaller regional rivals affects margins. To improve its financials, GoTo handed over its loss-making e-commerce arm, Tokopedia, to ByteDance Ltd’s TikTok in a US$1.5 billion (RM6.93 billion) deal. As part of the agreement, GoTo receives regular payments from TikTok, contributing a net 157 billion rupiah in fees for the second quarter. The company reiterated its expectation to break even on an adjusted Ebitda basis for the full year.
Despite stiff competition and shaky consumer spending, GoTo's second-quarter net revenue rose 115% on a pro-forma basis to 3.5 trillion rupiah, driven by increased spending on budget-friendly products. The company is also investing in AI, releasing its first feature — a voice assistant — earlier this month.
However, GoTo has yet to achieve profitability on a net income basis, despite significant job cuts and reductions in marketing spending. Since Patrick Walujo became CEO last June, the company has moved closer to profitability, although its shares have roughly halved.
While the TikTok deal and cost reductions are set to ease financial pressure, the challenging market has led GoTo and its competitors to consider aggressive strategies. GoTo and Grab have revived discussions about merging their core businesses, potentially reducing spending to attract users.
Key Takeaways:
- GoTo's adjusted quarterly loss narrowed significantly after transferring its e-commerce business to TikTok.
- The company reported a 48 billion rupiah adjusted loss, compared to 885 billion rupiah a year earlier.
- GoTo expects to break even on an adjusted Ebitda basis for the full year.
- Second-quarter net revenue rose 115% to 3.5 trillion rupiah.
- The company is investing in AI and released a voice assistant feature.
- Discussions about a merger between GoTo and Grab have been revived.
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