January 31, 2023

Filipino Guardian

Sentinels of Filipino Free Press

DFNN Posts Highest Revenue Ever and 497% EBITDA Growth

DFNN President and CEO Calvin Lim

Given DFNN Group’s continued robust financial performance, revenue for the nine months ended September 30, 2022 was the highest recorded at ₱970.6 million, an increase of ₱615.0 million or 172.9% compared to the same period last year achieved total sales of ₱ 355.6 million this year. The Group also continued to post its highest-ever growth in EBITDA to ₱258.8 million versus a loss before interest, taxes, depreciation and amortization of ₱65.2 million in the same period last year, an increase of ₱324.0 million or one amazing growth. year-on-year of 496.9%.

“DFNN Group’s consistent revenue growth is a testament to our highly effective business strategy, centered on a robust digital platform. Our efforts to innovate will continue as we battle inflation and other economic headwinds in another challenging year,” said DFNN President and CEO Calvin Lim.

Net income for the nine-month period ended September 30, 2022 was ₱140.4 million, representing a year-on-year growth of 216.2%. This is a direct effect of the significant increase in activity across all of the company’s technology platforms.

Equity-based revenues from interactive businesses increased 203.8%. Total revenue in this category was ₱888.9 million compared to ₱292.6 million for the same period in 2021. The significant increase in commission income is attributed to the customized diverse interactive technology platforms driving the Company’s revenue growth.

Revenue from the development and maintenance of software solutions also saw strong growth of ₱68.7 million, an increase of ₱16.4 million or 31.4% compared to the same period last year.

Sales of software and application licenses were ₱13.0 million, an increase of ₱2.3 million or 21.2% compared to the same period last year. The increase in sales is due to the increase in foreign license income. Thus, all business areas of the DFNN Group showed a growth trend even in a challenging environment of high inflation.

Consolidated costs and expenses of ₱733.8 million, an increase of ₱293.0 million or 66.5% compared to the same period last year. This is attributable to increases in variable costs and costs associated with the Company’s continued development of its interactive technology platforms.

The company’s liquidity remained liquid throughout the nine month period. DFNN had consolidated cash and cash equivalents of ₱82.2 million with no material long-term debt.

Directly related to DFNN’s robust earnings and EBITDA performance, on September 5, 2022, DFNN’s board of directors approved the company’s equity restructuring. The reorganization, subject to Securities and Exchange Commission approval, is intended to reflect the actual financial position of the Company thereby substantially 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 par value or an infusion of additional paid-up capital into the Company and will not result in a change in the number of Company shares issued, outstanding and listed.

The equity restructuring is intended to accelerate and pave the way for future dividend payments by the company.

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