DigiPlus Interactive Corp reported a net loss of PHP947.58 million (US$14.9 million) for the third quarter of 2026 after recording a substantial fair-value decline on financial assets, despite an increase in EBITDA and continued growth in its active user base. The Philippines-listed gaming operator had recorded net income of PHP1.71 billion in the corresponding period last year.
The company’s financial results for the three months ended September 30 reflected pressure on gaming revenues alongside a nearly PHP4.52 billion loss associated with financial assets. The adjustment related to DigiPlus’ investment in convertible notes issued under a subscription agreement with Hong Kong-listed International Entertainment Corp (IEC), which backs the LaVie Resort & Casino Manila project.
Despite the quarterly net loss, DigiPlus reported EBITDA of approximately PHP2.85 billion, representing a 39.6% increase year-on-year according to its Philippine Stock Exchange filing.
The company also reported net income of PHP8.9 billion for the first nine months of 2026, including fair-value gains associated with IEC’s convertible bonds. Nine-month EBITDA reached PHP8.3 billion, reflecting the contribution of improved operating efficiency during a period of weaker revenue performance.
Fair-Value Adjustment Weighs on Quarterly Results
DigiPlus’ third-quarter revenue declined 32.3% year-on-year to approximately PHP12.90 billion. The company attributed the contraction primarily to reduced activity across its digital gaming operations.
In its results commentary, DigiPlus said the decline was “primarily attributable to lower retail gaming revenues following reduced customer acquisition, engagement, and transaction activity across the group’s digital gaming platforms.”
The weaker performance came amid challenging conditions in the Philippine economy. Investment analysts had previously pointed to rising fuel prices linked to tensions in the Middle East as a factor affecting both land-based and online gambling activity in the country.
Regulatory developments also formed part of the operating environment during the reporting period. DigiPlus has an online gaming license in Brazil, where a measure introduced on September 25 sought to prohibit fixed-odds betting activities, including sports betting and online gaming. The measure also provides for the termination of existing betting authorizations, although it remains subject to consideration by Congress and faces a legal challenge before Brazil’s Supreme Court.
DigiPlus maintained that the Brazilian developments had not materially affected its reported financial performance.
The fair-value adjustment involving IEC’s convertible notes represented a significant factor behind the quarterly loss. The subscription agreement covers convertible notes with an aggregate principal amount of HKD1.6 billion (approximately US$203.9 million).
DigiPlus invested PHP12.2 billion in IEC convertible notes during the first half of 2026. The company said the investment had generated a non-cash gain on a year-to-date basis, while the wider investment position contributed to the fair-value movements reflected in its financial statements.
Cost Controls Support EBITDA Margins
Although revenue declined, DigiPlus reported improved operating efficiency during the first nine months of the year. Its EBITDA margin increased by four percentage points to 22%, with the company attributing the improvement to tighter expense management and changes in its advertising and promotional expenditure.
The business also reported a five-percentage-point quarter-on-quarter increase in its NGR after-tax margin, which reached 40% relative to gross gaming revenue (GGR).
DigiPlus began publishing NGR after tax in the second quarter of 2026. The measure accounts for deductions including the Philippine Amusement and Gaming Corp’s (PAGCOR) regulatory share and fees, game provider charges, marketing expenses, payment processing costs, other direct gaming expenses and applicable taxes.
For the first nine months of 2026, NGR after tax declined 17% year-on-year to PHP16.2 billion. Nevertheless, the improvement in EBITDA margins indicated that lower operating expenses and more controlled promotional spending helped offset some of the pressure from reduced gaming revenues.
DigiPlus also disclosed that it paid PHP13.9 billion in taxes and regulatory fees during the nine-month period.
At September 30, the company held PHP11.7 billion in cash and cash equivalents, approximately 11% higher than at the end of the previous quarter. Total assets stood at PHP58.21 billion, while total equity reached PHP46.76 billion.
The company had also distributed PHP3.8 billion in dividends during the first half of the year. It said its financial position would support future spending on international expansion, acquisitions, technology and product development while maintaining its dividend policy.
Active Users Increase as DigiPlus Expands Its Content Portfolio
DigiPlus recorded further growth in its digital gaming audience despite the decline in revenue. Average monthly active users increased 3% quarter-on-quarter to 5.9 million, while monthly active bettors and depositors rose 5% to 4.9 million.
President Ping Chen pointed to the company’s operating progress and customer retention performance when discussing the nine-month results.
“Our first nine months performance reflects the progress we are making in strengthening operating efficiency while building our user base and content,” said Chen. “We remain focused on sustainable growth through self-development of compelling content, stronger user acquisitions and retention, and disciplined spending on advertising and promotions, and investments. Our average monthly active bettors and depositors (MABD) continues to grow and our user retention cohort continues to improve.”
The company has continued developing its digital entertainment offering through new releases and partnerships. Its agreement with Regal Entertainment brought the Shake, Rattle & Roll horror film franchise into its iGaming portfolio, with five titles launched on BingoPlus. The games, named Manananggal, Reyna Ahas, Triple Terror, LRT Monster and Aswang, draw on the Philippine film franchise. DigiPlus plans to extend the releases to ArenaPlus and GameZone.
The company also introduced nine internally developed games across its platforms. These included the live offerings Bingo Speed and Live Mines, alongside the specialty random number generator titles Beto Beto and Pinoy Drop Ball International.