DFNN Inc. on Friday said it posted an income for the six-month period ending June, partly as a result of more than doubling its revenues for the period, as it focused its efforts on serving the gambling industry.
The company said in its report that its income was at P2.8 million, a turnaround from last year’s loss of P26.5 million.
Revenues reached P124.8 million, an increase of P80.1 million, or 179 percent, from last year’s P44.7 million. The company said that increase was mainly due to the growth in service fees brought about by a new source of revenue from business-process outsourcing (BPO) services of Hatchasia and increase in commission income from the licensed gaming operations of IEST by about 384 percent.
“DFNN has now focused its efforts on business-process outsourcing services, its gaming product offerings, and its Internet and wireless applications through its various proprietary systems. DFNN’s proprietary software and systems have been accepted for use in the legal gaming and gambling industry,” the company said. The technology needs of the gambling industry are similar to the financial institutions that were initially targeted by DFNN, formerly known as Diversified Financial Network Inc.
DFNN said that it has increased its marketing efforts to provide more systems to the growing online gaming market in Asia, and these initiatives, which are long term in nature, will impact significantly to the group’s revenue and will provide for recurring revenue.
For the period, DFNN had a consolidated cost and expenses in the amount of approximately P116.2 million, a P50.2-million increase from the same period last year. The increase was attributable to the cost associated with the BPO services.
DFNN earlier asked the Regional Trial Court in Makati City to award the company some P310.09 million in unliquidated damages for its case that it won against the state-owned Philippine Charity Sweepstakes Office (PCSO).
In May, an arbitration panel sided with DFNN, and said that the state-owned firm that operates the country’s sweepstakes and lottery draws was wrong when it rescinded the company’s equipment-lease agreement, which included the upgrade for lotto-betting system.
The panel, which made its ruling on May 21, was headed by lawyer Victor Alimirong, with Fulgencio Factoran and Jose Tomas Syquia as its members. The panel only ordered the PCSO to pay DFNN some P27 million as liquidated damages on account of improper termination of the agreement.
“PCSO, if it is the party in default, shall pay DFNN liquidated damages in the amount equal to the market value of the system…inclusive of a penalty charge of 2 percent per month on the amount due computed from the date of termination or cancellation of the agreement to the actual date of payment,” DFNN said.