Key facts
- GoTo Group achieved its second consecutive quarterly net profit in the April-June period.
- Growth was primarily driven by the company's financial technology business.
- The ride-hailing and food delivery segment, Gojek, experienced a slowdown.
- A government cap on commissions charged to drivers has clouded the outlook for on-demand services.
Indonesian technology company GoTo Group announced its second consecutive quarterly net profit for the April-June period, largely propelled by the strong performance of its financial technology arm. Despite this positive financial result, the company's ride-hailing and food delivery services under the Gojek brand have experienced a slowdown.
The outlook for Gojek's on-demand services has been further impacted by a recent government decision to cap the commissions that companies can charge their drivers. This regulatory measure casts a shadow over the future prospects of this business segment.
The company's ability to secure a second straight profit indicates successful cost-cutting measures have begun to take effect, contributing to improved financial performance.