DFNN Q3 net loss: P119M (down 540% y/y)

DFNN [DFNN 2.99, up 1.4%; 0% avgVol] [link] posted a Q3 net loss of P119 million, down 540% y/y from its Q3/23 net income of P27 million, and a 9M net loss of P423 million, down 713% y/y from its 9M/23 net income of P69 million. On a 9M basis, DFNN reported P458 million in revenues, down 42% “due to the decrease in commission income” from P586 million to P249 million. Q3 revenues were down 32% y/y, with commission income down 44%. 

MB bottom-line: DFNN has spent a lot of time raising money through private placements and lobbying for new income streams, but it hasn’t spent a lot of time communicating with shareholders. Their profitability has imploded, but you wouldn’t know it from looking at the management team’s discussion section of its Quarterly Reports. They note a drop in commission revenue, but decline to contextualize that drop. What is the exact cause of the drop? What plans does DFNN have to rebuild its business? How are those plans going? I get that DFNN’s market was pushed into chaos after President Marcos’s surprise POGO ban earlier this year, but that’s no excuse for this weird lack of accountability and transparency. I used to always have DFNN on my watchlist due to its digital nature (easy expansion), but could never push the “BUY” button due to my unease with the company’s communication style. They’re not gaslighting us, but they’re certainly not openly communicating in this time of crisis. When in doubt, talk it out. 

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