Key Moments:
- Maybank Securities has projected a significant rebound for DigiPlus Interactive Corp, anticipating renewed growth in 2026.
- DigiPlus currently controls 41 percent of the Philippine online gaming market, with over 90 percent of its revenues now derived from online operations.
- The company’s share price dropped by approximately 70 percent following regulatory actions, reaching about Php20.50 from a previous high of Php65.30.
Shifting Revenue Streams and Regulatory Setbacks
Maybank Securities has commenced coverage on DigiPlus Interactive Corp, recognizing it as the leading online gaming and bingo provider in the Philippines. The firm noted a dramatic transition for DigiPlus, with online gambling accounting for over 90 percent of its revenues. Despite this evolution, the company faced a roughly 70 percent plunge in its share value to around Php20.50 after a Senate inquiry into the sector and stringent new advertising and e-wallet payment limitations.
| Event | Impact |
|---|---|
| Senate inquiry and new restrictions | Share price fell about 70% to Php20.50 |
| Online gambling revenue share | Over 90% in 2022 and beyond |
| Market share in online gaming | 41% |
Future Growth and Market Recovery Projections
According to Maybank analyst Raffy Mendoza, DigiPlus is set for a 21% growth in EPS in 2026. The upward revision in the company’s outlook was attributed to improving monthly active users, higher average revenue per user, and strengthened EBITDA margins driven by declining franchise fees and taxes. The analyst also highlighted the company’s ongoing gaming product diversification as a key growth factor.
Expansion Plans and Profitability Improvements
DigiPlus may unlock further growth by branching into offshore markets and evaluating acquisition opportunities in the traditional casino space. These moves are expected to continue reducing franchise fees and taxes, generating higher margins. Maybank pegs the fair value of DigiPlus shares at Php30.80, based on a 10-year cash flow analysis, even while acknowledging the challenging environment.
Regulatory Outlook and Industry Dynamics
Mendoza emphasized that stricter regulatory measures are on the horizon, which could influence player activity and market trends. However, he cautioned against the likelihood of a total prohibition of online gaming, suggesting that future regulation will favor tighter controls over outright bans to preserve economic benefits and enhance consumer protection.
Commitment to Responsible Gaming and Industry Collaboration
DigiPlus has reiterated its backing for prudent, protective policies. Its commitment to responsible gaming encompasses robust Know Your Customer protocols, deposit and self-exclusion limits, cooling-off mechanisms, and updated marketing practices in compliance with new advertising guidelines. The company also collaborates with civil society to foster financial literacy and responsible digital engagement.
Sustaining Leadership and Building for the Future
As a publicly traded enterprise with aspirations for global expansion, DigiPlus is working closely with policymakers and regulatory bodies to develop industry standards. Ongoing investments in compliance technology reflect the company’s drive to maintain trust and transparency. According to Maybank, DigiPlus’s adaptability positions it for sustained growth despite ongoing regulatory shifts in the Philippine gaming sector.
- Author
Daniel Williams
