DigiPlus Interactive Corp. faces pressure on profitability as higher customer acquisition and retention costs could offset the benefits of lower gaming taxes, according to S&P Global Ratings.
The agency expects the Philippine online gaming operator’s EBITDA margins to fall to 14.5–16 percent over the next two years, compared with an average of 18 percent in 2024–2025.
‘Higher customer acquisition and retention costs could weigh on margins,’ S&P said in its September 16th report, citing the impact of e-wallet delinking and advertising restrictions.
The agency assigned DigiPlus a B+ long-term issuer credit rating with a stable outlook. It expects revenue and EBITDA to resume growth over the next 12 months, supported by the company’s market position and large user base.
The margin warning comes as DigiPlus continues to recover from the August 2025 order separating e-wallets from online gambling platforms. Monthly active users recovered modestly in the first half of 2026, but S&P said they might remain below pre-delinking levels over the next two years.
Despite those pressures, S&P expects DigiPlus to retain a 40–50 percent share of the Philippine online gaming market over the next two years. The second-largest operator holds a 15–20 percent share.
The agency cited locally tailored products, in-house development capabilities and engagement through digital platforms and physical sites as strengths supporting customer retention.
However, regulatory uncertainty remains a major risk. S&P noted that proposed Senate legislation could strengthen player protection requirements or prohibit online gambling altogether.
The agency warned that ‘tightening regulations will slow growth, create volatility, and increase costs’ for online gaming operators.
DigiPlus remains heavily exposed to those changes, with online gaming accounting for more than 90 percent of its revenue and profits.
S&P also expects the company’s strong balance sheet and ample liquidity to help it manage regulatory disruption and sustain operations.
Regulatory tightening could also support consolidation. S&P said stricter enforcement and a proposed minimum fee for licensed operators could raise barriers to entry and push out smaller competitors, benefiting established companies with stronger brands and financial resources.
S&P also flagged execution risks associated with DigiPlus’ investment in International Entertainment Corp. and its expansion into overseas online gaming markets.
The agency estimates these initiatives could contribute 10–20 percent of revenue and EBITDA by 2027 as they ramp up, while potentially increasing cash flow volatility.
