DigiPlus Posts Third-Quarter Net Loss After Booking PHP4.52 Billion Fair-Value Hit on Convertible Notes
DigiPlus swung to a US$14.9 million Q3 net loss from a PHP1.71 billion profit, driven by a PHP4.52 billion fair-value decline on HKD1.6 billion convertible notes. Revenue fell 32.3% but EBITDA rose 39.6%. User growth continued and Brazil's betting ban was deemed non-material.
SCCG Take — Investment revaluations can mask underlying platform resilience shown in rising active users. Multi-jurisdictional operators must track how regulatory pauses in markets such as Brazil translate into actual balance-sheet effects over time.
DigiPlus Interactive Corp registered a net loss of PHP947.58 million (US$14.9 million) in the third quarter as reported by GGRAsia, reversing a year-earlier profit of PHP1.71 billion. The Philippine-listed online gaming operator booked the loss after recording a nearly PHP4.52 billion net loss on financial assets.
The fair-value decline relates to a subscription agreement with Hong Kong-listed International Entertainment Corp for convertible notes amounting to HKD1.6 billion (US$203.9 million). The notes back a casino hotel project now known as LaVie Resort & Casino Manila.
Third-quarter revenue declined 32.3 percent year-on-year to just under PHP12.90 billion, primarily due to lower retail gaming revenues from reduced customer activity on the group's digital platforms. EBITDA, however, rose 39.6 percent to just under PHP2.85 billion.
The results appeared in a filing to the Philippine Stock Exchange. DigiPlus holds a license from the Philippine Amusement and Gaming Corp and operates BingoPlus, ArenaPlus sportsbook, and GameZone.
User Metrics and Management Commentary
Average monthly active users grew 3 percent quarter-on-quarter to 5.9 million. Monthly active bettors and depositors increased 5 percent to 4.9 million.
President Ping Chen said: “We remain focused on sustainable growth through self-development of compelling content, stronger user acquisitions and retention, and disciplined spending on advertising and promotions, and investments.”
He added: “Our average monthly active bettors and depositors continue to grow, and our user retention cohort continues to improve.”
Brazil Regulation and Financial Position
DigiPlus maintains an online gaming license in Brazil. On September 25, Brazilian authorities prohibited fixed-odds betting, including sports betting and online gaming. The measure is subject to congressional review and a Supreme Court challenge.
“Management has assessed that the measure has no material impact on the group’s financial condition or results of operations for the period,” the company stated in the filing.
At quarter-end, total assets stood at just over PHP58.21 billion, with total equity of PHP46.76 billion and cash holdings of PHP11.68 billion.
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