Philippines-listed DigiPlus Interactive Corp is shifting its strategy towards higher-value players and away from expanding its local monthly active user base, as it navigates a more restrictive regulatory environment for online gaming in the country, says a report from Maybank Securities Inc.
The brokerage revised downwards its revenue projections for DigiPlus for the next two years, citing weaker-than-expected 2025 performance and a recalibration of growth assumptions.
DigiPlus is expected to prioritise user monetisation over expansion of monthly active users (MAUs), with management guiding for a smaller but more engaged player base with higher average revenue per user (ARPUs), wrote Maybank analyst Raffy Mendoza in a Tuesday report.
Mr Mendoza said this would likely temper earnings growth in the near term, with the institution trimming its revenue assumptions for DigiPlus by 12 percent and 18 percent for 2026 and 2027 respectively, as it expects there will be “fewer MAUs”, though that would be “partially offset by higher ARPUs”.
Despite an expectation of softer revenue, margins are projected to improve, supported by lower franchise fees and taxes following DigiPlus’ investment in International Entertainment Corp.
DigiPlus has a HKD1.60-billion (US$204.3-million) convertible note agreement with Hong Kong-listed International Entertainment, which – if fully converted – would result in DigiPlus holding a 53.89-percent stake in International Entertainment.
International Entertainment controls the New Coast Hotel Manila, a property that has a provisional casino gaming licence from the Philippine Amusement and Gaming Corp (Pagcor). The group has recently been using the brand “LaVie Resort & Casino Manila” to identify the complex.
According to Maybank, DigiPlus’ management “mentioned that they were able to sign a commercial agreement with International Entertainment that allows them to apply a lower Pagcor tax rate to integrated casinos”.
The institution said such costs declined to circa 31.5 percent in the fourth quarter of 2025, compared to 38 percent to 39 percent in the first nine months of last year.
As a result, DigiPlus’ earnings before interest, taxation, depreciation, and amortisation (EBITDA) margin are projected to rise to 19.7 percent by 2027, from 16.9 percent in 2025.
Maybank is also forecasting an 8-percent year-on-year rise in net profit for DigiPlus in 2026, to be followed by a 22-percent growth in 2027.
DigiPlus is also pursuing overseas expansion. It recently secured regulatory approval to operate in South Africa, following an earlier market entry in Brazil.
Maybank noted that it has not yet incorporated potential contributions from these international operations into its forecasts, pending further clarity on execution and profitability.
The report said potential catalysts for DigiPlus include the resolution of a Philippine Senate probe into online gambling in the country, as well as margin improvements from the International Entertainment investment and progress in offshore expansion.
