GoTo Posts First Profit as EBITDA Doubles to 907 Billion Rupiah

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GoTo Group (GTOFF) has delivered a milestone that could reshape its near-term narrative, reporting its first-ever net income as the company pushes through a multi-year turnaround while competing with Grab. Net income reached 257 billion rupiah for the March quarter, compared with a loss of 283 billion rupiah a year earlier, while adjusted EBITDA more than doubled to 907 billion rupiah and net revenue rose 26%. Management reiterated expectations for as much as 3.4 trillion rupiah in adjusted EBITDA this year, suggesting profitability could continue to build, even as overall revenue growth has slowed amid persistent competitive pressure.The result arrives after a period of significant restructuring, with cost reductions driven by job cuts and asset disposals helping stabilize operations following a sharp slowdown from earlier triple-digit growth. New CEO Hans Patuwo is placing emphasis on fintech as a key lever, supported by 57 million annual transacting users and 8.8 trillion rupiah in consumer loans, with the segment showing stronger momentum than on-demand services. That core business has been affected by factors such as higher oil prices weighing on commuting and delivery demand, though management is working to support margins and demand through product mix adjustments, advertising, and operational initiatives like pooling and zone-based strategies.At the strategic level, uncertainty still lingers. Long-running takeover discussions with Grab have yet to produce a definitive outcome, with negotiations slowed by regulatory scrutiny and shareholder-related complexities, including Telkomsel's roughly 2% stake. The lack of resolution has coincided with sustained share price pressure, with the stock down about 35% over the past 12 months and more than 80% below its 2022 IPO level. External risks remain in focus as well, particularly geopolitical tensions that could influence energy costs, although management indicated limited impact so far due to subsidized fuel prices, while noting that a prolonged escalation could begin to weigh on operations even as the broader direction of profitability is expected to trend upward with potential volatility.

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