Maybank Cuts DigiPlus 2026 Net Income Forecast 43 Percent on Philippine Household Spending Pressure

Maybank Securities Inc anticipates a difficult second half for Philippines-listed online gaming operator DigiPlus Interactive Corp in 2026. Pressure on household spending weighs on its domestic business even as the brokerage describes fundamentals as intact. A gradual earnings recovery is projected for 2027 driven by stronger spending per player, customer retention and returns from expansion investments.

Analyst Raffy Mendoza cut core net income forecasts by 43 percent to approximately PHP7.8 billion (US$124.3 million) for 2026 and by 48 percent to PHP8.6 billion for 2027. The revisions imply a 39 percent decline this year followed by an approximate 10 percent recovery next year. First-half revenue fell 31 percent year-on-year to PHP32.9 billion while EBITDA declined 40 percent to PHP5.5 billion. The EBITDA margin narrowed to 16.7 percent from 19.0 percent a year earlier.

Revised User and Revenue Projections

DigiPlus monthly active user base stabilised at approximately 5.75 million in the second quarter across BingoPlus, ArenaPlus and GameZone. BingoPlus accounted for 3.35 million users, GameZone 1.83 million and ArenaPlus 570,000. The combined total exceeded Maybank’s forecast of 4.75 million yet average monthly spending per active user reached only PHP805 against the brokerage’s prior assumption of PHP1,250.

Maybank lowered revenue forecasts for 2026 to 2028 by between 18 percent and 32 percent. It now projects revenue of approximately PHP65.4 billion this year and PHP64.9 billion in 2027. Second-quarter revenue was down 36.8 percent from the prior-year period. Maybank forecasts an EBITDA margin of approximately 18.5 percent for both 2026 and 2027.

Overseas Exposure and Risk Factors

Potential upside catalysts include returns from DigiPlus physical casino investment and greater clarity on overseas businesses. The operator completed subscriptions totalling HKD1.6 billion (US$204.1 million) in International Entertainment Corp convertible notes in June. Full conversion would deliver a 53.89-percent stake in the Hong Kong-listed company that controls the Manila property promoted as LaVie Resort & Casino Manila.

Uncertainty persists after Brazil’s newly announced online betting ban. DigiPlus relaunched there in July and maintains the developments are not expected to materially affect its overall financial or operating position. Maybank has yet to incorporate the Brazil and South Africa ventures into its forecasts. The brokerage identifies tighter regulation and intensified competition as downside risks while stronger user spending, activity and margins could support upward revisions to estimates. GGRAsia first detailed the Maybank report.

Reporting: GGRAsia

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