C05531-2018

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Aug 13, 2018
2. SEC Identification Number
A199908874
3. BIR Tax Identification No.
202955796
4. Exact name of issuer as specified in its charter
DFNN, Inc.
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
3F Bonifacio Technology Center, 31st St. cor. 2nd Ave, Bonifacio Global City, Taguig City Postal Code 1634
8. Issuer's telephone number, including area code
02-8180973
9. Former name or former address, if changed since last report
NA
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common 324,620,008
11. Indicate the item numbers reported herein
None

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

DFNN, Inc.DFNN

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

DFNN Posts Increased Revenue In All Business Sectors
Background/Description of the Disclosure

Publicly listed IT company, DFNN Inc. (PSE: DFNN) (“DFNN” or the “Company”) reported today its financial results for the first half of 2018. The Company disclosed total revenues of P621.0 million, an 11.5% increase from the P556.9 million revenue earned in the same period last year. Additionally, DFNN posted an EBITDA of P129.7 million, an 11.9% growth from the P115.9 million EBITDA reported in the first half of last year.

The improved performance is primarily attributed to the rise in revenue from all business sectors with the highest growth from the sale of licenses amounting to P29.8 million, an increase of P27.3 million or 1,086.6% from the same period last year. Service income generated from the development and maintenance of software solutions totaled to P35.7 million, a substantial increase of P21.9 million or 159.4%. Moreover, commission income from the Company’s licensed gaming operations amounted to P555.5 million for the first half of 2018, a 2.76% improvement despite the reduction in the number of electronic gaming terminals (EGMs).

The rise in costs for this period is predominantly due to increased business activities, mainly marketing initiatives related to the expansion of the DFNN’s licensed gaming operations. By the end of the first half of 2018, DFNN deployed over 5,600 EGMs nationwide. In response to this growth, the Company augmented manpower resources, logistics, and technical support on a nationwide level. The Company’s e-casino gaming platform, Instawin, remains to be the premier leader in the Philippines providing the most extensive variety of games in nearly 200 locations across the country. The Company’s longterm marketing efforts are expected to have a notable impact to future performance and revenues.

DFNN President and CEO, Calvin Lim, states, “In the first half of the year, we have been focused on not only strengthening our current business models, but also looking to expand into other sectors within the technology space. We anticipate maintaining this steady trajectory and look forward to sharing these successes with all our stakeholders in the next months.”
Other Relevant Information

For inquiries, contact:

Miren E. Cueto +63917 723 6225
Investor Relations & Communications Officer
Filed on behalf by:
Name Cyrus Richard Montesa
Designation Chief Legal Counsel/Chief Compliance Officer