DFNN, Inc. saw its profits surge in 2017 due to an increase in commission fees from platform affiliates and revenues from software maintenance services.
In a regulatory filing, DFNN reported its net income attributable to parent reached P131.9 million last year, increasing more than six-fold from P19.94 million in 2016.
The information technology (IT) company said its group revenues soared 270% to P961.95 million in 2017, from P259.88 million in the previous year.
“The boost in revenues is largely due to the 300% rise in commission fees from platform affiliates and a 438% improvement in service income attributable to revenue generated from software maintenance services,” DFNN said in a statement.
DFNN’s commission revenues jumped 340% to P917.91 million, driven by the 201% increase in electronic gaming machines to 6,093 in 2017 from 2,296 in 2016.
Sale of licenses went down 58% to P12.53 million last year from a year ago’s P30.04 million due to the drop in purchases from clients.
Service fees, which include revenues from software maintenance services, rose by 51% to P31.5 million in 2017.
DFNN expenses stood at P899.54 million, up by 172% last year.
“The increase in cost of services is corollary to the increase in commission income during the year brought about by the increase in volume and gaming outlets. General and administrative expenses likewise increased as the Company has to augment its manpower resources, logistics and technical supports to meet the demands due to the increase in business activities,” the company said.
DFNN President and CEO Calvin Lim expressed confidence the company’s positive performance in 2017 will continue this year.
“We are confident that this will carry over to this year as we add new revenue streams and extend our core competencies to other avenues within the technology sector,” he said in a statement.
DFNN currently engages in online gaming services, with its subsidiary Pacific Gaming Investments Pty. Ltd. working on game developments for the firm, HatchAsia, Inc. for management and technology expertise, and iWave, Inc. for system integration software and technology development. — Patrizia Paola C. Marcelo
