DigiPlus Interactive Corp reported a sharp drop in earnings for Q1 2026, as tighter controls on online gaming payment channels reduced user access and spending. Net income fell 32.9% year-on-year to PHP2.82 billion ($45.9 million) for the three months ending 31 March.
The company posted a 25.2% decline in revenue to PHP17.24 billion ($281.2 million), while EBITDA dropped 42.5% to PHP2.64 billion ($43.0 million).
According to DigiPlus, the leading factor in the drop off in revenues was due to the loss of the ability to gain access to e-wallets through gaming apps, leading users to find it too hard to use them (decreasing transaction volume as well). Additionally, there is weaker consumer sentiment because of the global increasing cost of fuel, due to tensions in the Middle East.
Retail gaming has produced approximately PHP17.0 billion ($277.1 million) of the revenue, however this area is also down, 25.3% compared to a year ago.
Total expense decreased by 19.1% to PHP15.08 billion ($245.8 million), while however operating income was down 49.1% to PHP2.17 billion ($35.4 million), which directly related to declining revenues.
DigiPlus has entered into a HKD1.60 billion ($204.8 million) convertible note transaction with International Entertainment Corp. Under this convertible note transaction by 100% conversion will result in DigiPlus obtaining a 53.89% ownership position.
DigiPlus manages multiple platforms: BingoPlus, ArenaPlus, GameZone, do have brick-and-mortar slot arcades.
In April DigiPlus received online gaming licenses from the Western Cape Gambling and Racing Board and on the same day announced a multi-year partnership with the National Basketball Association through the ArenaPlus platform making them the NBA’s 1st official betting partner in the Philippines.
As of 31 March, the company held PHP20.5 billion ($334.2 million) in cash, with total debt of PHP745.8 million ($12.15 million).
Maybank Securities has decreased its revenue projections for DigiPlus to the next two years because of DigiPlus’s performance (less than expected) and updated growth expectations.
