MANILA, Philippines — DigiPlus Interactive Corp. has received its first-ever corporate family rating from Moody’s Ratings, earning a B1 rating with a stable outlook as the Philippine digital entertainment and online gaming company pushes ahead with expansion at home and abroad.
The rating gives DigiPlus a measure of credibility with creditors and investors, with Moody’s citing its dominant position in the Philippine online gaming market, strong cash generation, low leverage and net cash position.
But there is a major catch.
Moody’s expects DigiPlus’ earnings before interest, taxes, depreciation and amortization (EBITDA) to fall to about ₱11.4 billion in 2026 from ₱14.3 billion in 2025, a decline of roughly 20%. The ratings agency attributed the pressure partly to regulatory changes affecting mobile-wallet access to online gaming, as well as weaker consumer sentiment, elevated fuel prices and broader inflationary pressures.
The stable outlook therefore comes with an important condition: Moody’s expects DigiPlus to maintain its leading market position, adapt to evolving regulations and execute its expansion plans prudently.
Why Moody’s still likes DigiPlus
Despite the expected earnings decline, Moody’s sees DigiPlus as one of the strongest players in an increasingly regulated Philippine online gaming market.
The agency estimates that DigiPlus controls approximately 38.5% of the country’s online gaming market and has around six million monthly active users. Its portfolio includes more than 1,000 games spanning bingo, electronic gaming and sports betting.
Moody’s Assistant Vice President Yu Sheng Tay said the B1 rating reflects DigiPlus’ leadership in the Philippine market and its strong financial position, supported by low leverage, robust cash generation and a net cash position.
However, those strengths are being weighed against regulatory uncertainty, intense competition and the company’s ambitions to expand into land-based casinos and international markets.
Earnings expected to rebound—but not immediately
Moody’s expects the 2026 earnings setback to be temporary.
The agency projects DigiPlus’ EBITDA could recover to approximately ₱14 billion to ₱15 billion in 2027 and 2028, supported by organic growth and contributions from its investment in International Entertainment Corp. (IEC), as well as overseas operations.
DigiPlus has been expanding beyond its traditional online gaming operations.
Its investment in IEC could eventually give DigiPlus a 53.89% stake if its convertible notes are fully converted. IEC controls LaVie Resort & Casino Manila, which holds a provisional casino gaming license from the Philippine Amusement and Gaming Corp.
DigiPlus is also expanding its online gaming footprint in Brazil and South Africa, while planning to apply for an online gaming license in New Zealand.
The regulatory problem investors cannot ignore
The biggest uncertainty surrounding DigiPlus remains regulation.
Moody’s pointed to the Bangko Sentral ng Pilipinas’ August 2025 directive requiring mobile-wallet and payment providers to remove in-app access to online gaming platforms. The change reduced industry-wide online gaming revenue and contributed to the weaker earnings outlook for 2026.
DigiPlus’ own latest investor disclosures show the impact of the tougher operating environment. For the second quarter of 2026, the company reported ₱15.6 billion in revenue, down 37% year-on-year, while EBITDA fell 37% to ₱2.8 billion. At the same time, net income increased 66% year-on-year to approximately ₱7 billion.
That mixed performance highlights the challenge facing the company: maintaining profitability and cash generation while regulatory restrictions reshape how customers access and pay for online gaming.
Why the B1 rating matters
A B1 rating is below investment grade, meaning Moody’s considers the issuer exposed to meaningful credit risk, although the rating is not an indication that DigiPlus is in financial distress.
Moody’s expects DigiPlus to maintain leverage below 0.5 times over the next 12 to 18 months, assuming there are no major acquisitions or investments. As of June 30, the company had approximately ₱10.5 billion in cash and cash equivalents.
The agency also believes DigiPlus has room to take on additional debt to finance expansion while maintaining relatively low leverage. BusinessWorld reported that the company’s target of keeping net debt-to-EBITDA below three times indicates capacity and willingness to borrow for growth.
But one scenario could dramatically change the picture
There is perhaps no bigger warning in Moody’s assessment than its treatment of a potential nationwide online gaming ban.
The rating assumes continued regulatory tightening—but not an outright nationwide prohibition on online gaming.
Moody’s warned that a nationwide ban could result in a multi-notch downgrade, because online gaming accounts for the majority of DigiPlus’ revenue.
That distinction is crucial.
DigiPlus may be financially strong enough to weather tighter regulations, but a fundamental change in government policy toward online gaming would represent a much more serious threat to its business model.
Bigger player, tougher market
Interestingly, Moody’s believes stricter regulation could also benefit DigiPlus in the longer term.
As compliance requirements become more demanding, smaller operators may find it increasingly difficult to compete. Larger companies with stronger financial resources, established platforms and greater ability to adapt could gain market share as the industry consolidates.
That could work in DigiPlus’ favor.
But the company also faces competition from other operators and remains dependent on third-party game providers, which Moody’s says can limit product differentiation. Its expansion into land-based casinos and foreign markets also brings additional execution and financial risks.
The Bottom Line
Moody’s first-ever B1 rating with a stable outlook is a significant recognition of DigiPlus’ scale, liquidity and market position—but it is not a clean bill of health.
The ratings agency expects earnings to weaken in 2026 before recovering in 2027 and 2028. At the same time, DigiPlus is betting on diversification through land-based casinos and overseas markets while navigating a Philippine online gaming industry facing tighter regulation.
For investors, the real story may not be the B1 rating itself.
It is whether DigiPlus can turn its dominant Philippine market position into sustained earnings growth without being derailed by the next major regulatory shift.
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