DigiPlus Interactive Corp., the Philippines’ largest online gaming operator, reported a sharp quarterly downturn as new regulatory requirements forced significant operational changes to its platform access model. The company disclosed to the Philippine Stock Exchange that fourth quarter revenue fell 27% year-on-year to PHP17.3 billion ($289.3 million), down from PHP23.7 billion in the comparable 2024 period.

Net income dropped 36% to PHP2.5 billion ($41.8 million), while EBITDA contracted 32% to PHP3.1 billion. The primary culprit was a regulatory mandate implemented in Q3 requiring the unlinking of e-wallet in-app access from licensed gaming sites. That change disrupted established customer behaviour patterns and slowed deposit flows as players adapted to alternative funding mechanisms.

Sequential Recovery Signals Operational Adaptation

Despite the year-on-year decline, DigiPlus demonstrated improving momentum quarter-on-quarter.

Net income climbed 43% from Q3’s PHP1.7 billion, while EBITDA jumped 52% from PHP2 billion, reflecting tightened cost discipline and operational adjustments as the business recalibrated to the new regulatory environment.

For the full year, DigiPlus maintained profitability with net income of PHP12.6 billion ($210.7 million) on total revenue of PHP84.2 billion ($1.4 billion), representing 12% growth over 2024’s PHP75 billion. Full-year EBITDA edged up 2% to PHP14.2 billion. The annual performance benefited heavily from pre-regulation strength in the first half, before the e-wallet restrictions took effect mid-year.

Strong Balance Sheet Supports Dividend and Expansion Plans

Chairman Tanco characterised the results as evidence of the company’s ability to navigate heightened regulatory scrutiny and intensifying competition. Looking ahead, he expressed confidence in the operator’s positioning for 2026 despite ongoing sector challenges.

DigiPlus underscored that confidence by declaring a quarterly cash dividend of PHP3.8 billion, representing 30% of full-year net income. Shareholders of record as of 1 April 2026 will receive PHP0.83 per share, payable by 15 April. This marks the company’s third consecutive year of dividend distributions.

The operator closed 2025 with PHP23.4 billion in cash and equivalents against modest debt of PHP745.8 million. That leaves the balance sheet well positioned for both shareholder returns and strategic investments.

Land-Based Integration Taking Shape

DigiPlus is actively pursuing diversification beyond its digital core through a potential majority stake in International Entertainment Corp., the Hong Kong-listed owner of the New Coast Hotel Manila integrated resort. The investment structure involves convertible notes that would give DigiPlus a 53.89% ownership position, providing a physical gaming foothold to complement its online ecosystem.

The company has already begun operating New Coast Hotel Manila’s online gaming platform since November, with no rebranding currently planned. The dual-channel strategy positions DigiPlus to deepen customer engagement across both digital and land-based touchpoints. A hedge, essentially, against regulatory volatility in either segment.

As the Philippine gaming market continues to evolve under tighter regulatory oversight and increasing competitive pressure, DigiPlus appears to be using financial strength and strategic optionality to maintain its market-leading position. The company’s ability to absorb a significant regulatory shock while preserving profitability and funding both dividends and expansion suggests operational resilience that should serve it well. What remains is a dynamic and occasionally turbulent market, but one DigiPlus seems equipped to handle.

What the team thinks

Baz Hartley: The e-wallet restrictions are proving more disruptive than many anticipated, but it’s worth noting that payment method regulation often reshapes player behavior far more dramatically than bonus or game rules ever do. A 27% revenue drop suggests DigiPlus relied heavily on payment convenience as a competitive advantage.

Sheena McAllister: Absolutely right, and what we’re seeing in the Philippines mirrors patterns from other jurisdictions where payment rails get tightened. The regulatory intent is clearly about transaction visibility and control, which typically means a rough adjustment period followed by market stabilization once operators adapt their compliance infrastructure.

Baz Hartley: The silver lining for players is that these friction points, while inconvenient short term, usually lead to more sustainable operator practices. When easy deposits slow down, responsible gambling metrics tend to improve, even if that’s not the regulator’s primary goal.

Sheena McAllister: That’s the interesting secondary effect we’ve observed in mature markets. The Philippines gaming regulator is essentially importing lessons learned elsewhere, and DigiPlus’s numbers show they’re bearing the cost of that learning curve first.