TLDR
- Moody’s Ratings assigned DigiPlus Interactive Corp its first credit rating, a B1 with a stable outlook.
- Moody’s expects DigiPlus’s 2026 EBITDA to fall 20.3% to about $181.8 million.
- A 2025 Philippine central bank rule cutting mobile wallet access to gaming apps is driving the drop.
- DigiPlus controls 38.5% of the Philippine online gaming market with 6 million monthly users.
- The company is expanding into land based casinos and new markets including Brazil, South Africa, and New Zealand.
Moody’s Ratings has given DigiPlus Interactive Corp its first credit rating. The rating agency assigned a B1 corporate family rating with a stable outlook.
A B1 rating sits below investment grade. Moody’s said DigiPlus’s strong market position, low debt, and steady cash flow support the score.
At the same time, Moody’s pointed to risks. These include changing regulations, tough competition, and the company’s expansion plans.
Moody’s also forecast a drop in DigiPlus’s earnings this year. The agency expects 2026 EBITDA of about PHP11.4 billion, or $181.8 million.
That would be down from PHP14.2 billion in 2025, a decline of 20.3%.
Regulatory Changes Cut Into Revenue
The expected drop traces back to a Philippine central bank rule from August 2025. It required mobile wallet and payment providers to cut off direct in-app access to online gaming platforms.
Moody’s said this reduced online gross gaming revenue across the industry. Lower consumer confidence, rising fuel costs, and general inflation added further pressure.
DigiPlus felt the impact directly. Its second quarter EBITDA fell 36.9% to PHP2.84 billion.
Moody’s expects earnings to recover in the coming years. It projects DigiPlus’s EBITDA to climb back to between PHP14 billion and PHP15 billion in both 2027 and 2028.
That recovery is expected to come from organic growth, the consolidation of International Entertainment Corp, and returns from overseas investments.
Market Share and Expansion Plans
Despite the earnings dip, DigiPlus remains the largest online gaming operator in the Philippines. It holds an estimated 38.5% market share and about 6 million monthly active users.
The company offers more than 1,000 games spanning bingo, electronic games, and sports betting. Moody’s said this range helps DigiPlus keep users engaged and lowers the cost of acquiring new ones.
DigiPlus does rely heavily on outside game providers, which limits how different its offerings are from competitors. It is livestreaming some games and building its own content to address this gap.
In June, DigiPlus completed a second subscription to convertible notes from Hong Kong listed International Entertainment worth HKD800 million, or $102.1 million.
Its full note package could give DigiPlus a 53.89% stake in International Entertainment if converted. That company controls the LaVie Resort & Casino Manila, which holds a provisional gaming license.
DigiPlus also plans to grow its land based casino business, partly due to a favorable tax setup. It continues expanding online gaming in Brazil and South Africa, and plans to apply for a license in New Zealand.
On the financial side, Moody’s expects DigiPlus’s leverage to stay below 0.5 times over the next 12 to 18 months. The company aims to keep net debt to EBITDA under 3.0 times.
As of June 30, DigiPlus held PHP10.5 billion in cash. Moody’s expects operating cash flow of PHP19.5 billion to cover capital spending, debt payments, and shareholder returns through December 2027.
