- Blibli reports 29% reduction in operating losses despite 4% decline in net revenue.
- First-party retail revenue decreased 28%.
- CEO Kusumo Martanto emphasized a profitability strategy.
Indonesia-based e-commerce major Blibli has announced a 29% reduction in its loss from operations for the 2023 fiscal year, despite a 4% year-on-year decline in net revenue, which stood at 14.7 trillion rupiah (US$926 million).
The company attributed the net revenue decline to its strategy of optimizing its total processing value (TPV) mix by focusing on more profitable product selections across categories in the first-party retail segment.
Mixed performance across revenue segments
Blibli’s revenue is generated from four main segments: first-party retail, third-party retail, corporate customers, and physical stores.
While first-party retail (B2C e-commerce sales) saw a 28% year-on-year decline in net revenue to US$401 million, the third-party retail segment (serving sellers on Blibli’s e-commerce platform and Tiket.com) experienced a significant 466% surge in net revenue during the same period, reaching US$70 million.
Blibli’s strategy and stock performance
Kusumo Martanto, Blibli’s CEO and co-founder, emphasized that the company’s profitability strategy was centered around optimizing its product mix, prioritizing higher-margin products, and aligning third-party seller rates with its profitability roadmap.
The company’s shares, listed on the Indonesia Stock Exchange under the ticker symbol BELI, ended Monday slightly higher than their March 28 closing price, at 474 rupiah (US$0.02).
To read the original article: https://www.techinasia.com/blibli-cuts-losses-33-fy-2023-revenue-4
