S&P gives DigiPlus ‘B+’ rating, forecasts up to 50pct share of Philippine online market

S&P Global Ratings has assigned a ‘B+’ long-term issuer credit rating to DigiPlus Interactive Corp, saying it expects the company to retain a 40-percent to 50-percent share of the Philippine online gaming market over the next two years. The rating agency assigned a ‘stable’ outlook to the Philippines-listed online gaming operator. It said DigiPlus’ “good products and effective user engagement” were likely to help it remain the country’s largest online gambling operator, while identifying the evolving regulatory environment and execution of new projects as key risks. DigiPlus currently has a “big lead” over the second-largest operator, which S&P estimates has a market share of between 15 percent and 20 percent. The ratings institution said DigiPlus benefited from a large user base, mainly comprising lower- to middle-income players, as well as an in-house development team, and its physical presence across the Philippines. S&P’s rating action follows Moody’s Ratings assigning DigiPlus an initial ‘B1’ corporate family rating, also with a ‘stable’ outlook, earlier this month. Moody’s expects the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) to decline by 20.3 percent year-on-year in 2026, to approximately PHP11.4 billion (US$181.8 million). In its own report, S&P said regulatory developments remained one of the main risks for DigiPlus, noting that online gaming accounted for more than “90 percent” of the company’s revenue and profit. The ratings agency pointed to the August 2025 order by the nation’s central bank requiring the delinking of electronic wallets from online gambling websites. DigiPlus’ revenue subsequently fell 23 percent quarter-on-quarter in the third quarter of 2025, after having increased by 176 percent in full-year 2024. S&P said several bills under consideration in the Philippine Senate could impose tighter player-protection requirements or potentially ban online gambling. “We view this as an ongoing risk and believe tightening regulations will slow growth, create volatility, and increase costs for e-game operators,” the institution stated. Market consolidation S&P nonetheless said tighter regulation and industry consolidation could work to DigiPlus’ advantage. The company’s Philippine online gaming market share declined to 41 percent in 2025, from 47 percent in 2024, amid increased competition. But the ratings agency said DigiPlus had subsequently regained some market share despite the e-wallet restrictions. S&P expects consolidation in the sector, with larger incumbent operators such as DigiPlus potentially benefiting as smaller operators – with cost, branding and technology disadvantages – exit the market. The institution also expects higher customer acquisition and retention costs to put pressure on profitability. It forecast DigiPlus’ EBITDA margin at between 14.5 percent and 16 percent over the next two years, compared with an average of 18 percent in 2024 and 2025. DigiPlus reported second-quarter 2026 revenue of PHP15.61 billion, down 36.8 percent year-on-year, while quarterly EBITDA declined 36.9 percent to PHP2.84 billion. S&P also said DigiPlus’ push into land-based casinos and overseas online gaming markets supported longer-term diversification but also introduced “execution risks”. The ratings agency estimated those new businesses could contribute between 10 percent and 20 percent of DigiPlus’ revenue and EBITDA by 2027. DigiPlus holds online gaming licences in Brazil and South Africa and is considering a bid for a New Zealand online gaming licence. The company has also appointed advisory firm Teneo as it pursues opportunities outside the Philippines. The online gaming operator has subscribed to HKD1.60 billion (US$204.1 million) of convertible notes issued by Hong Kong-listed International Entertainment Corp. Full conversion would give DigiPlus a 53.89-percent stake in International Entertainment, which controls the LaVie Resort & Casino Manila. S&P expects those investments to result in a moderate increase in DigiPlus’ debt, but forecasts its adjusted debt-to-EBITDA ratio at about 1.0 times over the next two years. The report said DigiPlus’ financial policy remained a “watchpoint”, noting that the company itself aims to keep net debt-to-EBITDA below 3.0 times. The ratings agency said the ‘stable ‘outlook reflected its expectation that DigiPlus would resume revenue and EBITDA growth over the next 12 months, supported by its market position and large user base, while maintaining S&P-adjusted leverage at about 1.0 times in 2026 and 2027.