DigiPlus recovery hinges on player spend, earnings forecasts cut: Maybank

Philippines-listed online gaming operator DigiPlus Interactive Corp faces a “difficult second half” of 2026 as pressure on household spending weighs on its domestic business, although its fundamentals remain “intact”, says Maybank Securities Inc. The brokerage expects a gradual earnings recovery in 2027, with stronger spending per player, customer retention and returns from expansion investments identified as potential drivers of improvement. In a Monday report, analyst Raffy Mendoza cut forecasts for DigiPlus’ core net income for 2026 and 2027 by 43 percent and 48 percent respectively, to approximately PHP7.8 billion (US$124.3 million) and PHP8.6 billion. The revised estimates imply a decline of about 39 percent this year, followed by a recovery of approximately 10 percent next year. In the Philippines, DigiPlus runs BingoPlus, an online bingo platform; ArenaPlus, a sportsbook; and GameZone, a platform for casual and arcade gaming. The forecast revisions reflected “weaker-than-expected” first-half performance and expectations that subdued economic growth and elevated inflation would constrain the disposable income of online gaming customers. The brokerage lowered its revenue forecasts for 2026 to 2028 by between 18 percent and 32 percent, after reducing assumptions for monthly active users and average revenue per user. It now projects revenue of approximately PHP65.4 billion this year and PHP64.9 billion in 2027. DigiPlus’ monthly active user base had “stabilised” at approximately 5.75 million in the second quarter this year across its BingoPlus, ArenaPlus and GameZone platforms, according to Maybank’s memo. BingoPlus accounted for approximately 3.35 million users, followed by GameZone with 1.83 million and ArenaPlus with 570,000. While the combined user count exceeded Maybank’s forecast of 4.75 million, the brokerage estimated average monthly spending per active user at approximately PHP805, below its assumption of PHP1,250. DigiPlus’ first-half revenue fell approximately 31 percent year-on-year, to PHP32.9 billion, while earnings before interest, taxation, depreciation and amortisation (EBITDA) declined approximately 40 percent, to PHP5.5 billion, according to Maybank. The first-half EBITDA margin narrowed to 16.7 percent, from 19.0 percent a year earlier. Maybank forecasts an EBITDA margin of approximately 18.5 percent for both 2026 and 2027. The firm’s revenue for the second quarter was down 36.8 percent from the prior-year period. The brokerage also identified potential returns from DigiPlus’ physical casino investment and greater clarity on its overseas businesses as possible “upside catalysts”. DigiPlus completed subscriptions totalling HKD1.6 billion (US$204.1 million) in International Entertainment Corp convertible notes in June. Full conversion would give it a 53.89-percent stake in the Hong Kong-listed company, which controls the Manila property now promoted as LaVie Resort & Casino Manila. Overseas uncertainty remains following Brazil’s newly-announced online betting ban. DigiPlus, which relaunched there in July, has said the developments are not expected to materially affect its overall financial or operating position. Maybank has yet to incorporate the group’s Brazil and South Africa ventures into its forecasts pending further reporting from management. The institution identified tighter regulation and intensified competition as downside risks, while stronger user spending, activity and margins could support upward revisions to its estimates.