DFNN nets P10.1M in Q1

Internet-based financial service firm Diversified Financial Network Inc. (DFNN) remains on track with its revenue target for this year and next despite the sidelining of its computer kiosks network project, the company told the Philippine Stock Exchange.

"DFNN’s revenue in the projected years of 2001 and 2002 will not be affected because we did not factor in any revenue contribution from the kiosks project into our prospectus," the company said.

For this year, DFNN expects its revenue to reach P28 million. As of the first quarter, its consolidated revenue stood at P10.1 million or already 35 percent of total target for the year.

When DFNN became the first-operating web-based company to list its shares at the PSE last Oct. 30, 2000, it stated in the initial public offering (IPO) prospectus that about P51.6 million, or some 38 percent of the net proceeds from the IPO, will be spent for the establishment of DFNN.com kiosks.

However, DFNN has deferred its plan to build a nationwide network of 200 computer kiosks that, in order to save money, would be installed in the existing PJ Lhuillier Pawnshops controlled by the family of one of DFNN’s major shareholder, Jean Henri Lhuillier.

"DFNN is presently reviewing the deferral of the actual implementation of the kiosks project in the PJ Lhuillier Pawnshops. Although the kiosks project remains technically possible, DFNN is conducting a review of the business model in light of the operating environment to be prudent in its use of resources," the company said.

It cited that aside from the substantial increase in the peso cost per unit of the kiosks, the operating environment for the kiosks business has also become less conducive in the past months.

The firm said DFNN management also wanted to focus on the application side of the business to make sure that acquisition of another Internet application firm, Intelligent Wave Inc., immediately generates both revenue and contribution for the DFNN group.

DFNN clarified, however, that at this time, it has not authorized the use of funds intended for the kiosks for another purpose.

Established in June 1999 with an initial capitalization of P30 million, DFNN initially provided on-line stock trading services to PSE-member clients such as Mark Securities, All Asia Securities, Vickers Ballas, and Anscor Hagedorn Securities, on top of its own trading house Diversified Securities.

The firm soon expanded into an integrated application service provider (ASP) offering a host of financial and information services, as well as forging tie-ups with strategic partners including that with philstar.com, the online arm of The Philippine STAR.

DFNN provides software technology to financial institutions, allowing them to offer transactional services to their clients over the Internet. Moreover, through its website, the company provides users free access to timely news, general stock market and macroeconomic indicators, including technical charts, graphs, and research reports.