DigiPlus is expected to pivot toward higher-value players as it adjusts to tighter regulations in the Philippines, a move that could slow short-term growth but support stronger margins over time, according to Maybank Securities.
According to Maybank, DigiPlus is shifting away from an emphasis on increasing its monthly active user numbers to an intensified focus on monetising its current user base. With that new focus will come a target of fewer but more engaged customers with higher expenditure from those customers than previously captured.
Commenting on the changes in strategy, Maybank analyst Raffy Mendoza noted it is a reflection of the company’s ability to adapt to the very recent regulatory changes and the seen impact these changes will have on future performance. Because of this, Maybank also reduced revenue forecasts by 12% for 2026 and by 18% for 2027 due to the anticipated reduction in monthly active users with only partial offset by an increase in average revenue per user.
DigiPlus has a HKD$1.60 billion convertible note agreement which could convert to 53.89% ownership in International Entertainment which owns/operates the New Coast Hotel Manila, and has a provisional licence from the Philippine Amusement & Gaming Corporation.
As a result of the existence of a commercial agreement, DigiPlus will benefit further from lower PAGCOR taxes levied on integrated casino operations. These costs decreased to approximately 31.5% in Q4 2025, down from approximately 38% to 39% at the beginning of the year. If this trend were to Continue, the Company’s EBITDA margin should increase to 19.7% in 2027, from 16.9% in 2025.
Maybank believes DigiPlus will achieve 8% net income growth for 2026 and 22% for 2027, indicating that improved margins will offset overall slower revenue growth.
The company is also expanding internationally, having recently secured approval to operate in South Africa, following its earlier move into Brazil. However, Maybank has not yet factored in contributions from these markets due to limited visibility on execution.
Overall, the brokerage sees DigiPlus shifting toward a more selective, profitability-focused model—trading rapid user growth for stronger long-term returns in a more challenging regulatory environment.
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