DigiPlus receives Moody’s B1 rating amid expected 2026 EBITDA decline
Moody’s cited DigiPlus’ market position and financial strength while highlighting regulatory and competitive risks.
The Philippines.- DigiPlus Interactive Corp has received a B1 corporate family rating from Moody’s Ratings. The agency expects the Philippine online gaming operator’s EBITDA to fall from PHP14.3bn in 2025 to PHP11.4bn (US$182m) in 2026 before recovering in the following two years. Moody’s assigned a stable outlook, citing DigiPlus’ market position, low leverage, strong cash generation and net cash position, while regulatory changes and competition are seen as key risks
DigiPlus has an estimated 38.5 per cent share of the Philippine online gaming market and around six million monthly active users. Its offering includes more than 1,000 games spanning bingo, electronic games and sports betting.
Moody’s expects EBITDA to decline partly due to the August 2025 Philippine central bank directive requiring mobile wallets and payment providers to delink in-app access to online gaming platforms. The agency said higher fuel costs, inflation and weaker consumer sentiment have also weighed on gaming spending.
The ratings agency forecasts EBITDA to return to about PHP14bn-15bn (US$223.5m-239.5m) in 2027 and 2028, supported by organic growth, overseas investments and the potential consolidation of International Entertainment Corp (IEC). DigiPlus has invested HKD1.6bn (US$204.2m) in convertible notes issued by IEC, including a second HKD800m subscription completed in June. Full conversion would give DigiPlus a 53.89 per cent stake in the Hong Kong-listed company.
The company is also pursuing online gaming opportunities in Brazil and South Africa, while planning to apply for an online gaming licence in New Zealand. Moody’s estimates that combined capital spending on its Brazilian and South African expansion will be about PHP650m (US$10.4m) over the next two years.
Moody’s expects DigiPlus’ leverage to remain below 0.5 times over the next 12 to 18 months, assuming no major acquisitions or investments. As of June 30, it held PHP10.5bn (US$167.5m) in cash and cash equivalents. Moody’s expects operating cash flow of about PHP19.5bn (US$311.1m), which it said would cover PHP7.6bn (US$121.3m) in capital spending, PHP1.3bn (US$20.8m) in debt maturities and PHP4.2bn (US$67.1m) in shareholder returns through December 2027.
Moody’s said tighter regulation could lead to further consolidation in the Philippine online gaming market as smaller operators face higher costs to meet regulatory requirements. This could give established operators such as DigiPlus an advantage. However, the agency noted that DigiPlus’ reliance on external game providers limits its ability to differentiate its products from competitors, while its casino and international expansion plans create additional execution risks.
While the B1 rating takes into account stricter gaming regulations, it does not factor in a nationwide ban on online gaming. Moody’s warned that such a ban could trigger a multi-notch downgrade since online gaming accounts for most of DigiPlus’ revenue.
