BELI - Reports 21% increase in net revenue

Global Digital Niaga (BELI) reported a growth of 21% in net revenue to IDR3.83 tn. Furthermore, the company also recorded improvement in profitability with EBITDA loss plunged by 17% yoy in 1Q23 to IDR817 bn, thanks to better cost efficiency, reflected by declining operating cost to TPV to 8.1%. Total TPV also jumped 78% yoy in 1Q23 to IDR17.92 tn while GPBD increased 63% yoy despite lower take rate yoy to 4.9%. (Source : Company) Comment : The higher net revenue was fuelled by strong TPV of 3P segment escpecially Tiket.com amid strong recovery in online travel industry. Meanwhile, as industry has been moving into better cost-structure, BELI has also demonstrated marketing and ads cost cutting as well as G&A relative to its TPV. To accelerate profitability, BELI has started adjustment for 3P segment in March, which we believe to be reflected in higher GPBD in coming quarters. In addition, BELI will also focus on high margin product cateries such as electronics on 1P products.