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DFNN records highest ever revenue and 497% EBITDA growth

DFNN President and CEO Calvin Lim

Reflecting the DFNN Group’s continuing robust financial performance, revenue for the nine months ended Sept. 30, 2022 amounted to its highest recorded revenue at ₱970.6 million, an increase of ₱615.0 million or 172.9% compared to the same period last year from the previous year’s recorded total revenue of ₱355.6 million. The Group posted also continued its highest ever recorded growth in EBITDA to ₱258.8 million versus a loss before interest, taxes, depreciation and amortization of ₱65.2 million for the same period last year, posting an increase of ₱324.0 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 ₱140.4 million for the nine-month period ended Sept. 30, 2022, 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 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, 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.

The company’s cash position remained liquid throughout the nine-month period. DFNN 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, DFNN’s Board of Directors approved the company’s equity restructuring on Sept. 5, 2022. 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 Dec. 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.

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