THE board of listed gaming technology company DFNN, Inc. has approved the sale of an offshore gaming subsidiary to Vanguard Investments to streamline its operations.
In a stock exchange disclosure on Monday, DFNN said its board authorized on Sept. 22 the sale of its wholly owned unit Nico Bayan, Inc. to Vanguard Investments for P2 million. The listed firm said it has no relationship with Vanguard Investments.
Nico Bayan is in the business of developing software solutions.
“[This sale is] to streamline its current technology operations reporting thus focusing on revenue generation and optimizing wholly owned resources and improving overall profitability under the main listed company,” DFNN said.
“The manner of the acquisition shall be through a contractual arrangement,” it added.
In 2019, DFNN incorporated Nico Bayan to expand the company’s offshore gaming operations.
“The incorporation of Nico Bayan is intended to be used as a vehicle for the expansion of its offshore gaming operations,” DFNN said in a previous disclosure.
Last week, the Senate Committee on Ways and Means recommended the gradual phase-out and the eventual termination of Philippine offshore gaming operators or POGOs from the country due to the negative social impact in communities where their operations are located.
In a separate disclosure, DFNN said that it added Nicholas Te to its board of directors.
“This strategic move is not only aimed at expanding revenue streams but also at aligning the company’s organizational structure with the burgeoning opportunities in the technology sector,” DFNN said.
“Mr. Te brings a wealth of expertise in cutting-edge technology solutions. And with the majority of our business pipeline deeply entrenched in pioneering technology, this strategic appointment underscores our commitment to staying at the forefront of technological advancements,” the company added.
According to DFNN, Mr. Te has a Bachelor’s Degree in Materials Science and Engineering from the University of California in Berkeley. He is an engineer at Tesla, Inc., which is owned by American billionaire Elon Musk.
In the first six months, DFNN recorded P41.8 million in net income, down 71.2% from P144.9 million a year ago as its consolidated cost and expenses rose 30.6% to P606.6 million.
The company attributed the higher cost and expenses to a surge in variable costs and other costs associated with the continued development of its interactive technology platforms.
Shares of DFNN at the local bourse were last traded on Sept. 22, when it closed unchanged at P3.08 apiece. — Revin Mikhael D. Ochave