DFNN records highest ever revenue and 497% EBITDA growth
DFNN President and CEO Calvin Lim says, “The DFNN Group’s consistent revenue growth is a testament to our highly effective business strategy that focuses on a robust digital platform. Our efforts towards innovation will continue as we go head to head on another challenging year fighting inflation and other economic headwinds.” Contributed photo
Reflecting DFNN Group’s continuing robust financial performance, revenue for the first nine months of 2022 amounted to ₱970.6 million – its highest recorded profit as it was an increase of ₱615.0 million or 172.9% compared to the ₱355.6 million in the same period last year.
The group likewise continued posting its highest ever recorded growth of ₱258.8 million in EBITDA versus a loss before interest, taxes, depreciation and amortization of ₱65.2 million for the same period in 2021. It registered an increase of ₱324.0 million or an astounding growth, year-on-year, of 496.9% this year.
Net income stood at ₱140.4 million as of September 30, sustaining a growth of 216.2%, year-on-year. This a direct effect of the significant increase in the operations of all the company’s technology platforms.
Revenue from share-based income generated from interactive operations increased by 203.8%. Total revenue in this category amounted to ₱888.9 million for the first nine months compared to ₱292.6 million same period in 2021. The significant increase in commission income is attributable to the customized various interactive technology platforms driving the revenue growth generated by the company.
Revenue generated from the development and maintenance of software solutions also posted strong growth amounting to ₱68.7 million from January-September, an increase of ₱16.4 million or 31.4% compared to the same period last year.
Sales of software and application licenses amounted to ₱13.0 million, an increase of ₱2.3 million or 21.2% compared to the same period last year. The increase in revenue is due to the increase in foreign license revenue. Thus, all areas of the DFNN Group’s businesses exhibited a growth trend even in a challenging high inflationary environment.
Consolidated cost and expenses in the amount of ₱733.8 million, an increase of ₱293.0 million or 66.5% compared to the same period last year. This is attributable to the increase in variable costs and costs associated to the company’s continued development of its interactive technology platforms.
DFNN’s cash position remained liquid throughout the nine-month period. It had consolidated cash and cash equivalents amounting to ₱82.2 million with no significant long-term debt.
In direct correlation with DFNN’s robust profit and EBITDA performance, its Board of Directors approved the company’s equity restructuring on September 5. The restructure, subject to the approval of the Securities and Exchange Commission, is intended to reflect the actual financial condition of the company thereby significantly reducing its deficit in its equity account as of December 31, 2021, by offsetting its additional paid in capital against the deficit.
This exercise will not involve a change in the par value nor will it involve the infusion of any additional paid in capital to the company and will not result in any change in the number of issued, outstanding, and listed shares of the company.
The equity restructuring is intended to hasten and pave the way for future dividend declarations by the firm.
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