MANILA, Philippines — November 3, 2026
The Philippines’ online gaming leader DigiPlus Interactive Corporation is facing a difficult financial test as declining gambling revenue, tighter regulations and weaker consumer spending continue to weigh on its earnings.
The publicly listed company behind BingoPlus, ArenaPlus and GameZone reported that net income attributable to shareholders declined 12% to ₱8.85 billion during the first nine months of 2026, compared with ₱10.11 billion in the same period last year.
Revenue suffered an even sharper contraction, falling 32% to ₱45.75 billion.
That represents a decline of approximately ₱21 billion from the comparable period in 2025.
Yet the company’s latest results also contain a surprising development: despite falling revenue, its active user base continues expanding, while third-quarter operating margins are showing signs of recovery.
Average monthly active users increased 3% from the preceding quarter to 5.9 million.
Meanwhile, active bettors and depositors climbed 5% to 4.9 million.
DigiPlus is now focusing on developing its own games, strengthening customer retention and controlling marketing expenses.
But with Philippine gambling regulations tightening and household budgets under pressure, the company’s recovery remains far from guaranteed.
Can DigiPlus transform its millions of users into sustainable profit growth—or will declining player spending and rising competition create a bigger challenge for the country’s online gaming industry?
DigiPlus Earnings Decline as Revenue Drops 32%
DigiPlus’s nine-month financial results reveal the extent of the slowdown affecting its digital gaming operations.
According to its November 3 stock-exchange filing as reported by InsiderPH, the company recorded:
- Net income attributable to shareholders of ₱8.85 billion, down 12%.
- Total revenue of ₱45.75 billion, down 32%.
- Retail gaming revenue of ₱44.9 billion, down 32%.
- Net gaming revenue after direct gaming costs and taxes of ₱16.18 billion, down 17%.
- EBITDA of ₱8.33 billion, down 25%.
The figures show that the company’s revenue contraction was more severe than the decline in headline net profit.
However, the results should not be interpreted as evidence that operating conditions have fully stabilized.
The company continues facing pressure from reduced customer spending, regulatory restrictions and changes in the way players access online gaming services.
For investors, the main challenge is determining whether the latest margin improvements can continue despite lower revenue.
Why BingoPlus and ArenaPlus Are Facing Weaker Gaming Revenue
DigiPlus operates some of the Philippines’ best-known digital gaming brands.
BingoPlus offers online bingo products, ArenaPlus focuses on sports-related wagering, and GameZone provides other digital games.
The company expanded rapidly in earlier years as mobile access and digital payment systems made online gaming services easier to reach.
However, that business model faced a major disruption in August 2025.
The Bangko Sentral ng Pilipinas directed supervised payment providers to remove direct access links between electronic wallets and online gambling platforms.
Major electronic wallet operators subsequently complied.
The move made accessing gaming platforms less convenient through certain payment applications.
In May 2026, DigiPlus Chairman Eusebio Tanco acknowledged that the restrictions had affected user activity and transaction flows.
The change did not constitute a nationwide prohibition on every licensed online gaming operation.
Instead, it changed how customers could access gaming platforms through major financial applications.
That distinction is essential to understanding the company’s recent performance.
PAGCOR Reports a 37% Decline in Electronic Gaming Revenue
DigiPlus’s weaker results reflect a broader slowdown across the Philippine gaming market.
On October 29, the Philippine Amusement and Gaming Corporation reported that its total revenue for the first nine months of 2026 declined 23.41% to ₱64.41 billion.
The electronic gaming segment experienced an even larger contraction.
Revenue from electronic gaming fell 37.23% to ₱27.63 billion, compared with ₱44.03 billion a year earlier.
PAGCOR Chairman Alejandro Tengco identified weaker electronic gaming activity as a major reason for the decline.
The regulator’s figures were independently reported by GMA News and The Philippine Star.
This comparison matters because DigiPlus’s revenue decline cannot be evaluated in isolation.
The wider industry is experiencing similar headwinds.
However, PAGCOR’s revenue from electronic gaming and DigiPlus’s corporate revenue are different financial measures.
They should not be added together or treated as identical indicators.
More Players, but Less Revenue: DigiPlus’s Biggest Challenge
The latest user figures create an unusual contrast.
Average monthly active users reached 5.9 million during the third quarter, up 3% from the preceding quarter.
Active bettors and depositors increased 5% to 4.9 million.
Ordinarily, a growing user base may suggest additional opportunities to generate revenue.
But DigiPlus’s financial results show that higher participation figures are not automatically translating into stronger reported sales.
One possible explanation is that users are spending less on gaming activities.
Maybank Securities raised similar concerns in its October 5 analysis.
According to GGRAsia, the brokerage estimated average monthly spending per active user at approximately ₱805 during the second quarter, below its earlier assumption of ₱1,250.
These are earlier-period analyst estimates, not new third-quarter company disclosures.
They nevertheless help explain why rising user activity can coexist with weaker revenue.
A larger audience may not compensate for lower spending per customer.
For DigiPlus, future performance will depend partly on customer retention, changes in spending patterns and the profitability of its products.
Third-Quarter Margins Show Signs of Improvement
Despite the nine-month decline, DigiPlus reported encouraging sequential operating developments.
Third-quarter EBITDA edged up approximately 0.3% from the second quarter to ₱2.9 billion.
The company also reported an EBITDA margin of approximately 22%.
That suggests improvements in operating efficiency compared with earlier quarters.
Management has emphasized disciplined spending, customer engagement and greater control over its game-development capabilities.
DigiPlus President Ping Chen said the company remained focused on sustainable growth through new content, stronger customer acquisition and retention, and tighter spending discipline.
However, a higher margin does not automatically mean revenue or absolute profit has returned to earlier levels.
A business can improve its margin while remaining smaller than it was a year earlier.
For shareholders, the next important test will be whether DigiPlus can stabilize revenue while sustaining the recent efficiency gains.
The ₱2.23-Billion Investment Gain Requires Special Attention
One of the most important details in the company’s earnings report is a ₱2.23-billion noncash investment gain associated with International Entertainment Corporation.
The gain supported DigiPlus’s reported nine-month profit.
But it should not be confused with revenue generated from ordinary gaming operations.
Noncash investment gains can arise from accounting adjustments rather than cash collected from customers.
Their contribution may also change in future periods.
This means investors should evaluate DigiPlus’s underlying operating earnings separately from its headline reported profit.
Earlier in 2026, a similar distinction emerged when the company reported a strong second-quarter net profit supported by a substantial non-operating investment gain.
Its core earnings performance told a more restrained story.
The latest nine-month results reinforce the importance of that distinction.
A smaller decline in reported net income does not necessarily mean the operating business has recovered to the same extent.
Moody’s Warns of a Difficult 2026, but Sees Recovery Potential
Independent credit-rating analysis supports a cautious outlook.
In September, Moody’s Ratings assigned DigiPlus a first-time B1 corporate family rating with a stable outlook.
The agency recognized the company’s leading market position, strong cash generation and relatively low leverage.
However, it also highlighted regulatory uncertainty, competition and execution risks associated with expansion.
Moody’s projected that DigiPlus’s EBITDA could decline to approximately ₱11.4 billion in 2026, compared with ₱14.3 billion in 2025.
It expects earnings to recover toward ₱14 billion to ₱15 billion in 2027–2028.
These projections should not be presented as guaranteed results.
They depend on the company’s operating performance, regulatory environment and ability to execute its plans.
For investors, the rating provides a useful external assessment.
It does not eliminate the financial risks associated with the business.
S&P Warns That Marketing Costs Could Pressure Profitability
Another major concern is competition.
S&P Global Ratings assigned DigiPlus a B+ long-term issuer credit rating with a stable outlook in September.
The agency expects the company to remain a significant player in the Philippine online gaming industry.
It also warned that increased customer acquisition and retention expenses could pressure EBITDA margins.
S&P projected margins of approximately 14.5% to 16% over the following two years, compared with an average of around 18% in 2024–2025.
That forecast predates the latest third-quarter margin improvement.
The stronger 22% quarterly margin therefore offers an encouraging data point, but it does not automatically invalidate the longer-term risks identified by the agency.
S&P also believes tighter regulations could force smaller operators to leave the market, potentially allowing stronger companies to capture additional market share.
That outcome remains a projection rather than a confirmed industry consolidation.
Bloomberry’s Digital Push Raises Competitive Pressure
DigiPlus is facing increasingly active competitors.
Enrique Razon Jr.-led Bloomberry Resorts Corporation has been expanding its digital gaming operations through platforms including FUNaloMAX.
WWC ONE MEDIA recently examined the company’s promotional strategy in Bloomberry Launches ₱30-Million FUNaloMAX Campaign With Tesla and iPhone Prizes — But Can the Strategy Deliver Sustainable Growth?.
The campaign involves consumer prizes and gaming-related incentives intended to improve engagement.
For DigiPlus, such developments illustrate the competitive pressure to attract and retain users.
But promotional spending creates its own risks.
An operator can increase user activity without generating equivalent improvements in profit.
The challenge is balancing customer acquisition expenses against sustainable revenue and responsible operating practices.
Stronger Player Protection Is Becoming a Competitive Requirement
Regulatory compliance is another major issue facing the industry.
PAGCOR has been strengthening oversight of licensed digital gaming operations, including identity verification and responsible gambling measures.
WWC ONE MEDIA examined these issues in Bloomberry’s OnlyFun.PH Tightens Player Safety as Livestream Betting Expands — But Can Age Checks Really Keep Minors Out?.
That report discussed age restrictions, identity checks, deposit controls and other player-protection measures.
Licensed gambling operators must comply with applicable regulations, including restrictions protecting minors and other prohibited participants.
PAGCOR’s responsible gaming guidance warns consumers against borrowing money to gamble, using essential household resources or chasing losses.
These safeguards matter because revenue growth cannot be treated as the only measure of success in the gaming industry.
An operator’s ability to comply with regulations and reduce gambling-related harm is also important to its long-term position.
Inflation and Household Spending Could Slow the Recovery
Another pressure comes from the wider Philippine economy.
When food, transportation, electricity and other necessities become more expensive, households may have less money available for discretionary spending.
Maybank cited elevated inflation and weaker consumer spending in its decision to reduce DigiPlus earnings forecasts.
WWC ONE MEDIA previously explored these pressures in Philippines Faces Broader, Stickier Inflation Wave as Food, Fuel and Labor Costs Rise.
That report examined how rising costs were reducing purchasing power and affecting businesses.
A separate WWC ONE MEDIA analysis, Philippine Inflation Could Hit 8.1% as Fuel, Electricity and Transport Costs Surge — But Will the BSP Be Forced Into Another Rate Hike?, assessed the risks from another potential inflation surge.
These economic pressures could affect discretionary consumer industries.
However, they do not establish that every decline in DigiPlus’s revenue was caused by inflation.
Regulatory changes, competition and company-specific operating decisions also matter.
Higher Interest Rates Add to the Economic Uncertainty
The BSP raised its benchmark policy rate to 5.50% on October 22 after a 50-basis-point increase.
WWC ONE MEDIA covered the decision in BSP Stuns Markets With a 50-Basis-Point Rate Hike — What Happens Next to Loans, Prices and the Peso?.
Higher borrowing costs may affect economic activity, business investment and household spending over time.
But DigiPlus’s September cash balance and relatively low leverage suggest it is not facing the same financing pressures as a highly indebted business.
The wider issue is consumer demand.
If elevated inflation and interest rates continue weighing on households, discretionary spending could remain subdued.
For DigiPlus, that would make improvements in operating efficiency especially important.
Overseas Expansion Offers Opportunities — but Also New Risks
DigiPlus has been pursuing opportunities outside its main Philippine online gaming business.
Its investment in International Entertainment Corporation is linked to LaVie Resort & Casino Manila.
The company has also explored operations in South Africa and Brazil.
However, international expansion has encountered setbacks.
In October, DigiPlus said it would not proceed to the final rounds of New Zealand’s online gaming license auction.
The company has also faced regulatory uncertainty involving Brazil.
These developments do not mean all international expansion has been abandoned.
They do illustrate the difficulty of entering markets with different licensing systems, regulatory expectations and commercial conditions.
Overseas investments could eventually diversify DigiPlus’s earnings.
But until they contribute material, recurring profits, the company’s Philippine gaming operations will remain central to its financial performance.
DigiPlus Still Has ₱11.7 Billion in Cash
One important positive indicator is DigiPlus’s balance sheet.
The company ended September with approximately ₱11.7 billion in cash, according to its reported results.
That provides resources for operations, technology development and selected investments.
Liquidity can be particularly important during a period of weaker revenue.
It allows a company greater flexibility to adjust its strategy without immediately depending on additional borrowing.
However, a substantial cash balance does not guarantee that future operations will remain profitable.
Investment commitments, operating expenditures and regulatory developments could affect financial flexibility.
Investors will therefore need to monitor both available cash and the company’s ability to generate recurring operating cash flow.
What Investors Should Watch Next
The latest results suggest several indicators will determine DigiPlus’s future direction.
Revenue stabilization will be essential.
So will the company’s ability to maintain its recent EBITDA margin improvement.
Monthly active users and active bettors provide useful measures of customer engagement, but they need to be interpreted alongside spending and revenue.
Investors should also examine core operating profitability, excluding major noncash investment gains.
Other important developments include PAGCOR regulations, competition, new content and progress in international operations.
The company has identified stronger user retention, in-house games and spending discipline as priorities.
The next stage of its recovery will depend on whether those initiatives produce sustained financial improvement.
The Bottom Line
DigiPlus Interactive reported a 12% decline in nine-month net income attributable to shareholders, bringing earnings to ₱8.85 billion.
Total revenue fell 32% to ₱45.75 billion, while EBITDA declined 25% to ₱8.33 billion.
Despite these decreases, average monthly active users reached 5.9 million in the third quarter.
Third-quarter EBITDA increased slightly from the preceding quarter, with management reporting a 22% margin.
But the company’s reported earnings also benefited from a ₱2.23-billion noncash investment gain.
Independent analysts remain cautious about gaming revenue, consumer spending and regulatory changes.
Moody’s and S&P see opportunities for recovery but also highlight significant operational and regulatory risks.
As DigiPlus attempts to rebuild growth through millions of users, new games and tighter spending controls, one question will determine its next chapter: Can BingoPlus turn improving engagement into stronger recurring earnings—or is the 32% revenue collapse a warning that Philippine online gaming has entered a much tougher era?
