DFNN records highest ever revenue and 497% EBITDA growth

MANILA, Philippines — Reflecting the Group’s continuing robust financial performance, DFNN’s revenue for the nine months ended September 30, amounted to its highest recorded revenue at P970.6 million.

This is an increase of P615.0 million or 172.9% compared to the same period last year from the previous year’s recorded total revenue of p355.6 million.

The Group also posted continued its highest ever recorded growth in EBITDA to P258.8 million versus a loss before interest, taxes, depreciation and amortization of P65.2 million for the same period last year, posting an increase of P324.0 million or an astounding growth, year-on-year, of 496.9%.

“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,” DFNN President and CEO Calvin Lim shares.

Net income stood at P140.4 million for the nine-month period ended 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 P888.9 million compared to P292.6 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 P68.7 million, an increase of P16.4 million or 31.4% compared to the same period last year.

Sales of software and application licenses amounted to P13.0 million, an increase of P2.3 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 P733.8 million, an increase of P293.0 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.

The company's cash position remained liquid throughout the nine-month period. DFNN had consolidated cash and cash equivalents amounting to P82.2 million with no significant long-term debt.

In direct correlation with DFNN’s robust profit and EBITDA performance, DFNN’s 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 company.