DFNN EBITDA grows 671% in first half of 2022

Ramon Garcia Jr., executive chairman of DFNN.

MANILA, Philippines — DFNN Inc., a leading IT solutions provider, posted a 671% growth in its EBITDA (earnings before interest, taxes, depreciation, and amortization) in the first half of 2022 ending on June 30, according to a statement issued by the company.

That’s from an EBITDA reflecting a loss of P40. 4 million in the same period last year to this year’s rise to P230.7 million — an increase of P271 million, or a 671% growth.

Tracing a path of sustained recovery, DFNN had a revenue of ₱675.1 million in the first six months of this year compared to P268.9 million it had in the same period last year — an impressive increase of ₱406.2 million or 151.1%.

In June this year, DFNN signed a memorandum of understanding with Nautilus Data Technologies (Nautilus) to collaborate and jointly assist each other in projects involving the development of a data center in the Freeport Area of Bataan.

This collaboration was in line with DFNN’s goal of contributing to the vision of President Ferdinand Marcos Jr. of creating a leading digital infrastructure that would be both sustainable and globally scalable to complement the government’s inclusive strategies to leapfrog the economy.

At the same time, the company bolstered its board of directors — headed by Ramon Garcia Jr. as executive chairman — by appointing Steve Tsao, a veteran in finance with a wide range of experience in initial public offerings, mergers and acquisitions, venture capital, and fintech.

Tsao’s expertise is expected to complement the current board composition in its goal of sustaining growth and maximizing the opportunities in the technology sector to the benefit of the company’s shareholders.

Outstanding performance

Meanwhile, in the first six months of this year, DFNN’s net income stood at ₱144.9 million for the first half of this year, an outstanding performance increase of 288.6% coming from a net loss of ₱76.9 million in the same period last year.

This was a direct effect of the significant increase in the operations of all the company’s technology platforms as the government eased more COVID-10 restrictions.

In the same period, revenue from share-based income generated from interactive technology platforms increased by 189.7%. Total revenue in this category amounted to ₱617.4 million compared to ₱213.1 million for the same period in 2021.

Meanwhile, revenue generated from the development and maintenance of software solutions during the six-month period this year amounted to ₱44.7 million — a decrease of ₱1.1 million or 2.4% from the same period last year.

Sales of software and application licenses amounted to ₱13.0 million — an increase of ₱3.0 million or 31.0% compared to the same period last year. The increase in revenue from foreign license income also reflects a positive response to global recovery efforts.

Consolidated costs and expenses amounted to ₱464.4 million — an increase of ₱152.5 million or 48.9% compared to the same period last year.

This is attributable to the increase in costs associated with the company’s marketing strategies as well as the continued improvement of its technology platforms and implementation of the same.

DFNN’s cash position remains liquid throughout the six-month period with consolidated cash and cash equivalents amounting to ₱98.2 million with no significant long-term debt.

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