DFNN 2Q net loss narrows 22pct to US$1.8mln, as revenue slips

Philippine information technology and gaming services firm DFNN Inc reported a net loss attributable to shareholders of about PHP112.4 million (US$1.8 million) for the second quarter of 2026, with such loss narrowing by 21.7 percent from a year earlier. Revenue for the three months to June 30 was PHP53.3 million, down 5.8 percent year-on-year from the prior-year period, according to the company’s latest filing to the Philippine Stock Exchange. Via subsidiaries, DFNN has licences for electronic gaming machines, a sports betting exchange, and digit and pari-mutuel games, with the nation’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor). DFNN’s service-fee revenue, generated from the development and maintenance of software products, increased by 26.1 percent year-on-year to PHP36.1 million in the second quarter. Commission income, from share-based revenue from licensed gaming operations, declined to PHP4.3 million, from PHP10.9 million a year ago. The loss from operations in the April to June period stood at PHP86.4 million, down from PHP112.9 million a year ago. For the first six months of 2026, DFNN’s net loss stood at PHP263.3 million, on revenue that fell 33.6 percent year-on-year, to PHP106.9 million. The company said the decrease in commission income during the six-month period was “due to delinking of online gaming platform from the e-wallet providers” in the Philippines. Total revenue in this segment amounted to PHP21.6 million for the six-month period ended June 30, down 66.9 percent year-on-year. Service-fee income for the six months was PHP64.3 million, flat from a year earlier, while sales of goods declined 11.5 percent to PHP18.6 million. The company said that during the second quarter it continued to navigate a “transition in its revenue mix”, while maintaining its focus on cost discipline and operational efficiency. DFNN said its customer engagement platform LottoMatik continued its “nationwide rollout” during the second quarter, while its recently launched JBetMatik rewards programme had “surpassed expectations” in terms of user adoption and participation. The company said management would continue to prioritise operating efficiency, disciplined capital allocation and prudent financial management, while advancing its restructuring initiatives. DFNN had total assets of approximately PHP1.52 billion as of June 30, against total liabilities of PHP2.71 billion. Its cash and cash equivalents stood at PHP53.0 million. DFNN recorded a PHP411.0-million net loss for full-year 2025, despite annual revenue more than doubling to PHP63.6 million.