DigiPlus Interactive Corp. could face increasing pressure on its margins as traditional Philippine casino operators expand into online gaming, forcing the market leader to maintain heavy promotional spending, according to Abacus Securities Corp.
Competition has intensified as operators enter the market through their own platforms or third-party providers, Abacus said in an earnings preview cited by the Manila Bulletin.
The brokerage said the new platforms were likely to ‘slowly eat into’ DigiPlus’ market share and push the company to sustain advertising and promotion spending to attract and retain players.
Abacus expects DigiPlus’ second-quarter revenue to fall by about 20 percent to 25 percent year-on-year due to a higher comparison base and weaker consumer spending. Gross gaming revenue is expected to remain close to levels recorded in the fourth quarter of 2025 and first quarter of 2026.
DigiPlus has not announced a reporting date, but its second-quarter results are expected by August 14th, the regulatory deadline for filing its quarterly report.
The company reported first-quarter revenue of PHP17.24 billion ($296 million), down 25 percent year-on-year, after electronic wallets removed direct links to licensed online gaming platforms. Net income fell 33 percent to PHP2.82 billion ($48.5 million).
Advertising and promotion spending reached PHP4.53 billion ($77.9 million) during the quarter. Abacus said DigiPlus had guided for the spending ratio to remain in the high 20s this year, although lower Philippine Amusement and Gaming Corporation (PAGCOR) fees could partly offset the pressure.
New competitors include Bloomberry Resorts Corp.’s MegaFUNalo platform. PhilWeb Corp. is also supplying technology to operators including Newport World Resorts, Okada Manila, Hann Casino Resort and NUSTAR Resort and Casino.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said DigiPlus remained the incumbent leader despite the influx of casino-backed platforms.
“The near-term impact is likely more on margins than on revenue dominance,” Ravelas said, adding that long-term performance would depend on balancing customer acquisition, retention and regulatory compliance.
COL Financial senior research analyst Richard Laneda also said DigiPlus retained advantages from its larger user base, established platform and stronger player engagement, despite the expected impact of new entrants.
