Maybank Cuts DigiPlus Earnings Forecasts as Player Spending Weakens

Maybank Securities Inc. has reduced its earnings forecasts for DigiPlus Interactive Corp., saying the Philippines-listed online gaming operator faces a difficult 2nd half of 2026 as pressure on household spending affects its domestic business. The brokerage said DigiPlus’ fundamentals remain intact but expects any recovery to develop gradually in 2027.

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In a Monday report, Maybank analyst Raffy Mendoza cut forecasts for the company’s core net income by 43% for 2026 and 48% for 2027. The brokerage now expects DigiPlus to report core net income of around PHP7.8 billion, or US$124.3 million, this year and PHP8.6 billion next year.

The revised outlook implies a decline of around 39% in 2026, followed by a recovery of about 10% in 2027. Maybank said higher spending per player, customer retention, and returns from expansion investments could support the company’s improvement. 

Revenue Forecasts Reduced

Maybank reduced its revenue forecasts for DigiPlus from 2026 to 2028 by between 18% and 32%. The brokerage lowered its assumptions for both monthly active users and average revenue per user.

The firm now expects DigiPlus to generate revenue of approximately PHP65.4 billion in 2026. Its revenue forecast for 2027 is around PHP64.9 billion.

The forecast revisions followed a weaker-than-expected first-half performance. Maybank said slow economic growth and elevated inflation are expected to limit the disposable income of online gaming customers.

DigiPlus operates BingoPlus, an online bingo platform; ArenaPlus, a sportsbook; and GameZone, which offers casual and arcade gaming. The 3 platforms make up the company’s domestic online gaming business in the Philippines.

The brokerage said the company’s core challenge is not necessarily the number of users on its platforms, but the amount customers spend. Maybank identified stronger spending per user as an important factor for a future earnings recovery.

Users Remain Above Forecast

DigiPlus’ monthly active user base stabilized at around 5.75 million in the 2nd quarter, according to Maybank. The combined figure covered BingoPlus, GameZone, and ArenaPlus.

BingoPlus accounted for around 3.35 million active users. GameZone followed with about 1.83 million users, while ArenaPlus recorded approximately 570,000 users.

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The combined user count exceeded Maybank’s forecast of 4.75 million. However, the estimated average monthly spending per active user was only around PHP805.

This was lower than Maybank’s earlier assumption of PHP1,250 per active user. The gap between user numbers and average spending shaped the brokerage’s revised revenue and earnings forecasts.

DigiPlus reported first-half revenue of PHP32.9 billion, down around 31% from a year earlier. EBITDA declined around 40% to PHP5.5 billion.

The company’s first-half EBITDA margin narrowed to 16.7%, compared with 19.0% in the previous year. Maybank forecasts an EBITDA margin of around 18.5% for both 2026 and 2027.

Expansion Remains a Potential Catalyst

Maybank said possible returns from DigiPlus’ physical casino investment and greater clarity on its overseas operations could provide upside to its forecasts.

In June, DigiPlus completed subscriptions worth HKD1.6 billion, or US$204.1 million, in convertible notes issued by International Entertainment Corp. Full conversion would give DigiPlus a 53.89% interest in the Hong Kong-listed company, which controls the Manila property promoted as LaVie Resort & Casino Manila.

Maybank has not yet included DigiPlus’ Brazil and South Africa ventures in its forecasts because it is awaiting further reporting from management. DigiPlus has said Brazil’s newly announced online betting ban is not expected to materially affect its overall financial or operating position.

The brokerage identified tighter regulation and stronger competition as downside risks. Higher player spending, increased customer activity, and better margins could lead to upward revisions in DigiPlus estimates.

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Source: GGR Asia