Financials ...
DGTL Holdings loses $58,399 in Q2 2023
2023-01-31 10:22 ET - News Release
Mr. John Belfontaine reports
DGTL HOLDINGS INC. REPORTS SECOND QUARTER FISCAL 2023 FINANCIALS
DGTL Holdings Inc. has filed its second quarter fiscal 2023 financial results for the three-month period ending Nov. 30, 2022.
As previously reported, the new DGTL management team initiated strategic financial restructuring initiatives during the first quarter of fiscal 2023. The core purpose of these continuing initiatives was to reduce liabilities and operating expenses while increasing profitability, in order to develop a solid financial position for sustainable revenue growth and portfolio enhancement through new prospective merger and acquisition (M&A) activity.
Initial results from these initiatives show positive developments in the company's financial position evident in the second quarter fiscal 2023 filings. Highlights include a decrease in the total net loss (before income taxes) by 91 per cent, a decrease in the total current liabilities by 49 per cent and an increase in the gross profit margins by 60 per cent.
Second quarter highlights:
- Net loss before income taxes decreased by 91 per cent (from $607,360 reported for the period ending Nov. 30, 2021, to $58,399 reported for the period ending Nov. 30, 2022);
- Gross profit margin increased by 60 per cent ($174,076 reported for the three-month period ending Nov. 30, 2021, to $285,928 reported for the period ending Nov. 30, 2022);
- Total current liabilities decreased by 49 per cent ($3,175,279 reported for the period ending May 31, 2022, to $1,619,958 reported for the period ending Nov. 30, 2022);
- Salaries, fees and benefits decreased by 36 per cent ($227,131 reported for the three-month period ending Nov. 30, 2021, to $145,003 reported for the three-month period ending Nov. 30, 2022);
- Revenue increased by 20 per cent (from $490,233 reported for the three-month period ending Aug. 30, 2022, to $607,541 reported for the three-month period ending Nov. 30, 2022).
"Management is confident that we are taking the appropriate actions to generate long-term shareholder value. Looking ahead, we expect to realize further benefits in our financial position from ongoing financial restructuring initiatives. Sales revenues were relatively consistent with just 6-per-cent growth from the same period in fiscal 2021, and 20-per-cent growth from the previous quarter, due to challenging global economic conditions during calendar 2022. However, management has seen a marked increase in the adoption of our TotalSocial PaaS (platform-as-a-service) among new Fortune 500 brands and strong renewal rates from long-term customers in recent months. Based on rising demand for our digital solutions, evolving global macroeconomics, new business development resources, and the roll-out of new digital content and analytics products under the TotalSocial brand, the company anticipates a potential renewal of incremental growth in the third and fourth quarters of fiscal 2023," said John Belfontaine, chief executive officer of DGTL Holdings.
For copies of filed financial statements, and management discussion and analysis reports, please visit SEDAR or the company's website.
DGTL Holdings Inc.
DGTL Holdings is developing a portfolio of digital media software and managed service business lines. DGTL (that is, digital growth technologies and licensing) specializes in accelerating commercialized enterprise-level PaaS (platform-as-a service) companies within the sectors of social, mobile, gaming and streaming. DGTL's vision is to build a full service digital media conglomerate through M&A (mergers and acquisitions) and a blend of unique capitalization structures.
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