Gaming tech firm sees higher earnings
Gaming technology solutions provider DFNN Inc. expects to swing back to profitability in its fourth quarter 2015 corporate report due to an increase in gaming and gaming-related services.
Based on estimates from Miren Cueto, DFNN investor relations head, net profit for the fourth quarter would likely come in at P25-P30 million, a turnaround from the P83.14 million loss in the same period last year.
Three-month cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) was estimated to reach P50-P60 million, up by 205-226 percent from the level last year.
In the fourth quarter of 2014, DFNN posted consolidated revenues of P27.75 million and Ebitda of P47.41 million.
Earlier, a local court awarded DFNN higher damages amounting to P310 million in relation to its complaint against state-controlled Philippine Charity Sweepstakes Office (PCSO) on the allegedly illegal termination of a lotto equipment leasing deal.
To recall, an arbitration court earlier ruled in favor of DFNN on the dispute with PCSO but awarded only P27 million in liquidated damages. Finding the award insufficient, DFNN filed a petition to correct the computation of damages and increase the award by 11 times to more than P310 million.
In a Feb. 17 decision, the regional trial court of Makati granted DFNN’s petition and ordered the correction of the arbitral award to P310,095,149.70 plus 6-percent interest from date of finality of the decision until final compliance by the PCSO.
An arbitration panel earlier ruled that the PCSO erred when it rescinded DFNN’s equipment lease agreement covering systems design development and upgrade for lotto betting via personal communication devices such as text, GPRS, Bluetooth, 3G, Wi-Fi protocols and other wireless devices.
The disputed equipment lease agreement was executed by the parties during the Arroyo administration in 2003, providing for the exclusive lease from DFNN all the hardware, software and knowhow to design and develop a system that would allow the processing of bets from personal communication device users nationwide. But in 2005, prior to the commercial operation of the system, DFNN was informed of the PCSO’s decision to terminate the deal, after which the PCSO began negotiating with third parties to carry out the project.
While DFNN earlier scored a legal victory against the PCSO, it said the tribunal should have computed the damage it awarded for the PCSO’s illegal termination at a higher amount.
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