LISTED gaming technology provider DFNN, Inc. said its board of directors has approved an increase in the company’s authorized capital stock to P2 billion from P500 million, subject to the approval of stockholders.
In a disclosure to the exchange on Tuesday, DFNN said the increase will expand its common shares to 1.9 billion from 400 million, while retaining 100 million preferred shares. All shares carry a par value of P1.
DFNN is the parent company of licensed gaming technology provider IEST, Inc.
Through its subsidiaries and affiliates, DFNN holds licenses with the Philippine Amusement and Gaming Corp. (PAGCOR) for electronic gaming machines, a sports betting exchange, and digit and pari-mutuel games.
In its latest quarterly report, the company said the planned capital increase will support additional subscriptions and enable a debt-to-equity conversion to reduce its accumulated deficit.
DFNN added that the capital infusion and related measures are expected to lower interest and penalty expenses and strengthen its financial position.
“These actions, together with expected long-term lead time projects due within the year, should affect the group in a positive financial manner,” it said.
DFNN reported a wider third-quarter attributable net loss of P135.6 million in 2025, from P112.43 million a year earlier, mainly due to lower commission income from its online gaming platform.
The decline followed the disconnection of payment links to online gaming sites by major e-wallet providers.
“Management is actively pursuing strategic partnerships and operational efficiencies to stabilize this segment and restore sustainable revenue growth,” DFNN said.
In July, DFNN President and Chief Executive Officer Ricardo F. Banaag said the company is banking on its newly launched LottoMatik platform and related technology products, such as electronic gates (e-gates), to support its recovery after reporting deeper negative equity in March.
The Philippine Stock Exchange earlier required DFNN to submit a recovery plan due to its widening deficit, which places the company at risk of involuntary delisting.
LottoMatik is a portable point-of-sale device designed to streamline lotto ticket purchases.
DFNN shares fell by 1.22% or one centavo to close at 81 centavos apiece on Tuesday. — Alexandria Grace C. Magno
