Moody’s Ratings has assigned Philippine online gaming operator DigiPlus Interactive Corp. its first corporate family rating, at B1, citing its leading market position and strong financial profile while warning of regulatory and execution risks.
The rating carries a stable outlook, reflecting Moody’s expectation that DigiPlus will maintain its market position, recover earnings and execute its expansion plans prudently.
“DigiPlus’ B1 rating reflects its leadership in the Philippines’ online gaming market and strong financial profile, underpinned by low leverage, robust cash generation and a net cash position,” said Yu Sheng Tay, a Moody’s Ratings assistant vice president.
“These strengths are balanced by exposure to regulatory change and intense competition in the Philippines’ online gaming sector. DigiPlus’ growth ambitions in land-based casinos and overseas markets also introduce execution risk,” Tay added.
Moody’s estimates that DigiPlus holds a 38.5 percent share of the Philippines’ online gaming market and has around six million monthly active users.
However, Moody’s expects DigiPlus’ EBITDA to decline to about PHP11.4 billion ($193 million) in 2026 from PHP14.3 billion ($242 million) in 2025.
The agency attributed the expected decline partly to an August 2025 directive from the Bangko Sentral ng Pilipinas requiring mobile wallet and payment providers to delink in-app access to online gaming platforms. The measure reduced online gross gaming revenue across the industry, while weaker consumer sentiment, higher fuel prices and broader inflationary pressures also weighed on discretionary gaming spending.
Moody’s expects EBITDA to recover to around PHP14 billion to PHP15 billion ($237 million to $254 million) in 2027 and 2028, supported by organic growth, the potential consolidation of International Entertainment Corp. (IEC) and contributions from overseas investments.
The agency said tighter regulation could accelerate industry consolidation and benefit large licensed operators with the scale and financial resources to adapt. However, DigiPlus’ concentration in the Philippines leaves it exposed to earnings volatility from further regulatory changes.
DigiPlus is also expanding its online gaming business in Brazil and South Africa and plans to apply for an online gaming license in New Zealand. Separately, its investment in IEC convertible notes could give it majority control of the company, increasing its exposure to capital commitments related to the LaVie Resort & Casino Manila project.
DigiPlus held PHP10.5 billion ($178 million) in cash and cash equivalents as of June 30th. Moody’s expects leverage to remain below 0.5 times over the next 12 to 18 months, provided the company does not undertake significant acquisitions or investments.
A nationwide ban on online gaming in the Philippines would likely result in a multi-notch downgrade because online gaming accounts for most of DigiPlus’ revenue, Moody’s said.
