DigiPlus Faces Lower Revenue Forecast as Maybank Sees Margin Gains

DigiPlus Interactive Corp is expected to shift further toward higher-value players as it adapts to a more restrictive online gaming environment in the Philippines. Maybank Securities Inc said the move could temper near-term growth, even as it sees margins improving over the next 2 years.

Strategy Shift

Maybank said DigiPlus is stepping away from a strategy centered on growing its local monthly active user base and is instead focusing more on monetising existing users. The broker emphasized that the management intends to focus on fewer yet more involved customers, as well as a greater contribution per user. Such an operating strategy, according to Maybank analyst Raffy Mendoza, is the result of the company’s adaptation to existing market regulations.

The report said this change will likely slow earnings growth in the near term. Maybank also cut its revenue assumptions for DigiPlus by 12% for 2026 and 18% for 2027, saying it now expects fewer monthly active users, although that should be partly offset by higher average revenue per user. The revised outlook follows what the brokerage described as weaker-than-expected 2025 performance and a fresh review of its growth assumptions.

Margin Support

Even with softer revenue expectations, Maybank said DigiPlus’ margins are likely to improve. The main support is expected to come from lower franchise fees and taxes after the company’s investment in International Entertainment Corp. DigiPlus has a HKD1.60-billion ($204.3-million) convertible note agreement with the Hong Kong-listed company, which, if fully converted, would give DigiPlus a 53.89% stake.

International Entertainment controls the New Coast Hotel Manila, which holds a provisional casino gaming licence from the Philippine Amusement and Gaming Corp. The group has also been using the name “LaVie Resort & Casino Manila” for the property complex. Maybank said DigiPlus management noted that it had signed a commercial agreement with International Entertainment that allows the company to apply a lower PAGCOR tax rate to integrated casinos.

The brokerage said these costs fell to about 31.5% in the fourth quarter of 2025, compared with 38% to 39% in the first 9 months of last year. Based on that trend, Maybank said DigiPlus’ EBITDA margin is expected to rise to 19.7% by 2027, up from 16.9% in 2025.

Earnings Outlook

There is an 8% more net profit expected for DigiPlus in 2026, Maybank says, jumping to 22% the following year. Slower sales might not matter much, although better margins may carry profits higher for 2 years.

The brokerage’s view reflects a company trying to balance tighter domestic conditions with a more selective operating model. By putting big spenders first, DigiPlus seems focused on steady income instead of chasing fast user gains. This move might slow revenue growth at the top, yet opens up better profit potential down the line.

Offshore Expansion

DigiPlus is also moving beyond the Philippines. The company recently secured regulatory approval to operate in South Africa, following an earlier market entry in Brazil. Maybank said it has not yet included any potential contribution from those overseas operations in its forecasts because more clarity is still needed on execution and profitability.

The report said possible catalysts for DigiPlus include the outcome of a Philippine Senate probe into online gambling, margin gains from the International Entertainment investment, and progress in offshore expansion. For now, Maybank’s revised outlook points to lower revenue but better margins as DigiPlus recalibrates its business in a more challenging market.

Source: GGR Asia

DigiPlus Faces Lower Revenue Forecast as Maybank Sees Margin Gains

Strategy Shift

Margin Support

Earnings Outlook

Offshore Expansion

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