Moody’s Assigns Initial B1 Rating to DigiPlus Interactive Corp Projecting 20.3 Percent EBITDA Decline in 2026

Moody’s Ratings assigned DigiPlus Interactive Corp an initial B1 corporate family rating with a stable outlook. The agency forecasts the Philippine online gambling operator’s EBITDA will decline 20.3 percent to PHP11.4 billion (US$181.8 million) in 2026 from PHP14.2 billion in 2025.

The estimate stems from the Philippine central bank’s August 2025 directive requiring e-wallets to block access to online gaming platforms, which reduced industry-wide online gross gaming revenue. Moody’s also cited weaker consumer sentiment amid high fuel prices and broader inflationary pressures limiting discretionary spending.

Regulatory Exposure and Market Leadership

DigiPlus is the largest online gaming operator in the Philippines with an estimated 38.5 percent market share and around six million monthly active users. Its portfolio of more than 1,000 games across bingo, electronic games, and sports betting supports user engagement, network effects, and customer retention.

The B1 rating reflects leadership in the online market, low leverage, robust cash generation, and a net cash position. These strengths are offset by exposure to regulatory change, intense competition, reliance on third-party game providers, and execution risks tied to growth initiatives. Tighter regulation is likely to accelerate industry consolidation that favours incumbents with scale such as DigiPlus. Moody’s does not assume an outright ban on online gaming in the rating.

Outlook for Recovery and Expansion Risks

DigiPlus completed a second subscription to HKD800 million (US$102.1 million) in convertible notes of International Entertainment Corp in June as part of a HKD1.60 billion package that could result in a 53.89 percent stake. The move increases exposure to the LaVie Resort & Casino Manila, which holds a provisional licence from the Philippine Amusement and Gaming Corp.

The operator is expanding into Brazilian and South African online markets with combined capital spending of around PHP650 million over the next two years and plans to apply for an online gaming licence in New Zealand. Moody’s expects EBITDA to recover to PHP14 billion to PHP15 billion in 2027 and 2028 supported by organic growth, consolidation, and overseas investments. As of June 30 the company held PHP10.5 billion in cash and cash equivalents. Projected operating cash flow of PHP19.5 billion is sufficient to cover capital spending of PHP7.6 billion, scheduled debt maturities of PHP1.3 billion, and shareholder returns of PHP4.2 billion through December 2027. Leverage is expected to remain below 0.5 times over the next 12 to 18 months.

According to reporting by GGRAsia, growth plans introduce execution and financial risks even as credit metrics stay strong.

Reporting: GGRAsia

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