GOTO Shows Positive Performance Despite Rising Losses

PT GOTO Gojek Tokopedia Tbk (GOTO) booked an unaudited net loss of Rp 40.5 trillion throughout 2022, surging 56 percent from a year earlier.

Soaring GOTO's losses can be partly attributed to a decline in goodwill value, which reached Rp 10.9 trillion in the previous year. GOTO's goodwill represents the valuation generated from Gojek and Tokopedia's merger in 2021. A high pre-IPO valuation was achieved due to the thriving tech sector and expectations for increased enterprise value during the merger.

Nonetheless, GOTO shares were corrected, leading to a drop in valuation during the final testing. "The technology sector is also undergoing a tech winter," GOTO management stated in a media presentation on Monday.

Moreover, following a high benchmark rate, technology stock valuations require reevaluation through a goodwill impairment test. Referring to the adjusted net loss, goodwill reached Rp 19.5 trillion in last year's fourth quarter. After the adjustment, the goodwill value amounted to Rp 6.5 trillion.