Technology firm DFNN Inc. chalked up P121.3 million in nine-month net profit, surging from a meager P800,000 net profit in the same period last year, on the back of robust revenues from licensed gaming operations.
Nine-month revenues soared by 616 percent year-on-year to P848.5 million, boosting its cash flow by 668.9 percent to P142.8 million.
“We take pride in our performance for the first nine months of the year and with the steady growth of DFNN’s affiliate partners.” DFNN chief executive officer Ramon Garcia Jr. said. “Given our continued focus on improving operating efficiencies and distribution numbers, we expect to maintain this upward trajectory and to improve our operating margins.”
Licensed gaming operations, constituting DFNN”s core business, increased by about P734.9 million or 872.2 percent year-on-year. This was due to the increase in gaming venues by 158.6 percent, in turn increasing the nationwide deployment of gaming terminals by 389.9 percent.
As of end-September, DFNN has deployed 7,109 terminals in 225 locations nationwide. Total revenue in this category amounted to about P819.2 million during the nine-month period compared to about P84.3 million for the similar period in 2016.
Revenues generated from development and maintenance of software solutions during the nine- month period amounted to P17.8 million, up by 15.3 percent year-on-year. This was due to an increase in sales of software and revenue from use of applications generated from domestic sales.
DFNN noted, however, that the regulatory environment in third quarter greatly affected the industry by rules regarding the lessening of operational hours, and the implementation of a nationwide
smoking ban. The industry continues to seek ways to mitigate the regulations, it said.
DFNN has now focused its efforts on its gaming product offerings, gaming business process outsourcing services, and its secure internet and custom financial applications through its various proprietary systems.
The company said its proprietary software, systems and platforms have been accepted for use in the legal gaming and gambling industry of which technology needs are similar to the financial institutions that were initially targeted by the company.
“DFNN has increased its marketing efforts to provide more systems to the growing online gaming market in Asia and these initiatives which are long term in nature will impact significantly to the group’s revenue and will provide for recurring revenue,” it said.