Indonesia's GoTo narrows quarterly underlying loss

JAKARTA (Reuters) -Indonesia's biggest tech company PT GoTo Gojek Tokopedia Tbk reported a second-quarter underlying loss of 70 billion rupiah ($4.3 million), down from 139 billion rupiah in the previous three months as cost-cutting efforts take effect.

Jacky Lo, chief financial officer of the ride hailing and e-commerce company, said in a statement that the company achieved its results while it continues to reduce costs.

"As such, we believe we are on the right track to continue growing while remaining committed to our profitability goals," he said.

Its second-quarter adjusted underlying loss was 48 billion rupiah on a pro-forma basis, versus an 885 billion rupiah loss a year ago. The pro-forma figures assume that its e-commerce unit Tokopedia and the delivery or fulfilment businesses GoTo Logistics were deconsolidated as of January last year, GoTo said.

GoTo, Indonesia's biggest tech company by stock market value, also reported a 3% rise in net revenue to 3.66 trillion rupiah. On a proforma basis net revenue in the second quarter was 3.52 trillion rupiah, up 115% year-on-year.

GoTo said the company was on track to meet its full-year adjusted breakeven target in terms of core earnings or EBITDA. Its 2024 outlook includes increasing the number of users of its on-demand and fintech services.

($1 = 16,295.0000 rupiah)

(Reporting by Stanley Widianto and Stefanno Sulaiman; Editing by Louise Heavens and David Holmes)