AI Summary
Sign in to listen

Moody's assigns DigiPlus first-time B1 rating with stable outlook

The rating reflects DigiPlus' strong financial position alongside regulatory and expansion risks.

1 min read
digiplus
Key Points
Moody's assigned DigiPlus a first-time B1 corporate family rating with a stable outlook
DigiPlus holds an estimated 38.5% share of the Philippines' online gaming market
EBITDA is expected to fall to PHP11.4bn (US$181.72m) in 2026 before recovering to around PHP14bn-PHP15bn in 2027-28

Moody's has assigned DigiPlus a first-time B1 corporate family rating, citing its leading position in the Philippines' online gaming market, low leverage and strong cash generation.

DigiPlus has expanded rapidly since launching its online platforms in early 2022. The company now has an estimated 38.5% domestic market share and around six million monthly active users, supported by more than 1,000 games spanning bingo, electronic games and sports betting.

However, its heavy reliance on the Philippines leaves earnings exposed to regulatory changes. Moody's expects EBITDA to decline from PHP14.3bn in 2025 to around PHP11.4bn in 2026, partly reflecting the impact of the central bank's August 2025 directive requiring mobile wallets and payment providers to remove in-app access to online gaming platforms.

EBITDA is projected to recover to around PHP14bn-PHP15bn in 2027-28, supported by organic growth, overseas investments and the potential consolidation of International Entertainment Corporation (IEC).

DigiPlus is also pursuing expansion beyond its core Philippine online business. The company is entering Brazil and South Africa, plans to apply for an online gaming license in New Zealand and is exploring greater exposure to land-based casinos through its investment in IEC.

Last month, DigiPlus appointed Teneo as a strategic advisor to support its international expansion and evaluate opportunities and risks in new markets.

Despite its growth plans, DigiPlus remains in a net cash position, with leverage expected to stay below 0.5x over the next 12 to 18 months absent major investments or acquisitions.

The stable outlook assumes DigiPlus will maintain its domestic market position, adapt to tighter regulation and pursue expansion prudently. A nationwide Philippine ban on online gaming, however, could result in a multi-notch downgrade.

Good to know

DigiPlus had PHP10.5bn in cash and cash equivalents at the end of June

Reaction Board

Set Global Gaming Insider to be your preferred search result

News Analysis

View All
Welfare Bans Gambling

Gambling and welfare: Where should regulators draw the line?

As regulators face growing questions over how to protect financially vulnerable players, welfare recipient-based gambling restrictions emerge in Europe.

4 min read • • By Marieta Lezaic
brazil bird

Brazil: Is an online gambling ban realistic – and how might it look?

A full online gaming ban looks unlikely, but Brazil has plenty of options between doing nothing and shutting the industry down.

5 min read • • By Layla Victoria
super app analysis

SuperApps in an uncertain future: What next for DraftKings, Fanatics and FanDuel?

After Fanatics' recent launch, the era of sports betting, prediction market and iGaming SuperApps has nearly reached its apex, potentially determining new market leaders – at least in two of those categories...

4 min read • • By Kirk Geller

In The News

View All
ESMA
[ELEVATED IMPORTANCE]

ESMA warns prediction markets face heightened insider trading risk

The EU financial regulator says crypto use, institutional expansion and event-specific information create growing surveillance and manipulation challenges for prediction markets.

· Legal & Regulatory + 6