DigiPlus reports 124% rise in 2Q26 net income to US$114 million

Dig Deeper

Related stories

2026/04/17: Philippine online gaming surpasses land-based casinos as largest revenue source 2025/11/07: DigiPlus Q3 earnings drop 59% after gambling transactions blocked on e-wallets 2026/01/30: Philippine gaming revenue falls despite rising online casino and bingo income 2026/07/06: Investor urges DigiPlus to launch substantial share repurchase due to “absurd” valuation of shares

The Backstory

From rapid expansion to a reset in expectations

DigiPlus Interactive Corp.’s latest earnings update lands after a volatile stretch for one of the Philippines’ most visible online gaming companies. The company entered 2025 with strong momentum, helped by the scale of its BingoPlus, ArenaPlus and GameZone platforms, then spent much of the year adjusting to tighter controls on gambling-related payments and a shift in investor sentiment toward the sector.

The company’s second-quarter 2026 results show how DigiPlus is trying to reframe that period. Net income surged, core profit improved and management highlighted active-user growth, operating efficiency and a new reporting emphasis on net gaming revenue. That change matters because it narrows attention to revenue after regulator shares, platform fees, promotional costs, payment costs and other direct expenses. For a business that has had to absorb both regulatory disruption and higher customer acquisition costs, the metric gives investors a cleaner view of the underlying economics.

The current figures also underscore a broader strategic transition. DigiPlus is no longer presenting itself only as a Philippine online gaming operator. It is pursuing a wider gaming-technology model, looking at overseas markets and testing exposure to land-based gaming through its investment in International Entertainment Corp. That expansion follows a year in which the company’s growth narrative was challenged by policy intervention at home.

Early 2025 showed the scale of the platform

Before the policy shock, DigiPlus was reporting the kind of growth that made it a benchmark for digital gaming in the Philippines. In the first quarter of 2025, the company posted PHP4.2 billion in net income, more than double the prior-year period, while revenue rose 69% to PHP23.06 billion. The update, covered in DigiPlus’ first-quarter earnings report, showed the benefit of a large registered player base, new games and sustained performance across its flagship brands.

That quarter also illustrated why the business had become important beyond shareholders. DigiPlus said its regulatory fees and tax contributions rose 28% from a year earlier to PHP1.9 billion. In a market where licensed online gaming is closely tied to government revenue, the company’s growth carried fiscal significance as well as commercial relevance.

Management used that period to emphasize long-term investment in technology, talent and trust, while also signaling ambitions outside the Philippines. The message was straightforward: DigiPlus had built a domestic online-gaming engine with enough scale to pursue international growth. That thesis would be tested within months as regulators moved to restrict a key channel for player access and payments.

E-wallet restrictions changed the operating equation

The turning point came in the second half of 2025, when the Bangko Sentral ng Pilipinas directed e-wallet providers to disconnect in-app access to licensed gaming platforms. The policy did not ban licensed online gaming, but it removed a major transaction route in a market where mobile wallets had become central to digital consumer activity. For operators, the effect was immediate: user activity, deposits and payment flows became harder to sustain.

DigiPlus’ third-quarter earnings reflected that disruption. As reported in the company’s third-quarter profit decline, net income fell 59% to PHP1.71 billion between July and September 2025. Revenue dropped 23% to PHP19.05 billion and EBITDA declined 55% to PHP2 billion. The company still reported growth for the first nine months of the year, but the quarterly reversal showed how dependent the sector had become on integrated payment access.

DigiPlus responded by broadening payment options and emphasizing player protection and governance. It launched a player surety bond with Philippine First Insurance and partnered with CIS Bayad Center to expand payment options for users of BingoPlus, ArenaPlus and GameZone. Those moves were defensive but also strategic: the company needed to reduce reliance on third-party wallet ecosystems and rebuild transaction convenience under the new rules.

A profitable year, but with slower momentum

By the end of 2025, the impact of the restrictions was clear. DigiPlus remained profitable, but the pace of growth slowed sharply. In its full-year update, detailed in DigiPlus’ 2025 profit report, the company posted net income of PHP12.6 billion, nearly flat against 2024. Annual revenue rose 12% to PHP84.2 billion, though most of the expansion came before the e-wallet-linked disruption.

The fourth quarter showed both pressure and adaptation. Net income fell 36% from a year earlier to PHP2.5 billion and revenue declined 27% to PHP17.3 billion. Sequentially, however, the company improved from the third quarter, with net income up 43% and EBITDA up 52%. Cost-cutting, operational adjustments and alternative payment efforts helped stabilize performance after the initial policy shock.

The balance sheet became a central part of the investment case. DigiPlus ended 2025 with PHP23.4 billion in cash and PHP745.8 million in debt, allowing the board to approve a PHP3.8 billion cash dividend. Chairman Eusebio Tanco also committed to buying additional shares. Those actions were intended to signal confidence during a period when earnings visibility had weakened and investors were reassessing regulatory risk.

Product innovation became part of the recovery plan

Even as payment restrictions weighed on activity, DigiPlus continued to expand its game portfolio. The launch of Bingo Speed, covered in the company’s livestream bingo expansion, fit a broader strategy of adapting familiar Filipino gaming formats for digital channels. The product offered faster one- to two-minute rounds, automated card marking and quicker number draws, positioning it as a higher-frequency version of traditional bingo-hall play.

The launch came after a weak first quarter in which DigiPlus said net income fell 33% to PHP2.8 billion and revenue declined 25% to PHP17.2 billion, with e-wallet restrictions continuing to affect user activity and transaction flows. That context made product development more than routine portfolio management. Faster games, culturally familiar mechanics and interactive features were intended to lift engagement while the company rebuilt its payments ecosystem.

Management’s messaging during that period stressed that the company’s fundamentals were intact. The claim rested on several factors: a large installed user base, recognized brands, proprietary content, operating cash generation and the ability to adjust distribution and payment channels. The second-quarter 2026 improvement gives that argument more support, though the decline in gross gaming revenue from the prior quarter shows the recovery is not linear.

Investor pressure and the capital allocation question

DigiPlus’ rebound has not ended debate over how it should use its cash. A shareholder group led by Tomasz Juroszek urged the board to launch a substantial share repurchase, arguing that the company’s valuation had become disconnected from its fundamentals. In the investor letter calling for a buyback, the group said DigiPlus traded at unusually low multiples compared with listed global B2C gaming operators, despite strong cash generation and little debt.

The letter framed the e-wallet disruption and broader consumer weakness as temporary headwinds rather than evidence of structural decline. It argued that DigiPlus had responded appropriately by adapting its payment ecosystem, reducing reliance on third-party access points and continuing to expand its offering. That view aligns with management’s own recovery narrative, but it creates a sharper capital allocation question: should cash be directed toward buybacks, dividends, product development, international licenses or acquisitions?

The second-quarter 2026 results show DigiPlus trying to pursue several of those paths at once. It is reporting stronger profitability, investing in technology and research, expanding overseas and entering land-based gaming exposure through IEC’s LaVie Resort & Casino in Manila. The planned expression of interest for a New Zealand gaming license adds another potential jurisdiction to a footprint that already includes Brazil and a license in South Africa.

The stakes are therefore larger than one quarter’s earnings. DigiPlus is testing whether a Philippine online gaming leader can absorb regulatory disruption, defend margins, maintain user growth and still fund international expansion. Its latest profit surge strengthens that case, but investors will be watching whether net gaming revenue growth, payment resilience and capital discipline can hold as the company moves beyond its home market.