DigiPlus Interactive Corp will overcome short-term regulatory challenges and enjoy renewed growth in 2026, with its share price rising by around 21% over this year according to Maybank Securities.
The investment bank this week initiated coverage of the Philippines online gaming giant, which holds around 41% market share in the online gaming and bingo space and, since transitioning from brick-and-mortar bingo and electronic games into online gambling in 2022, now derives over 90% of its revenues from the online space.
DigiPlus has seen its share price fall by around 70% since its peak of Php65.30 earlier this year to around Php20.50 currently, impacted by a senate inquiry into the domestic online gaming sector and new restrictions around advertising and use of e-wallets for gambling purposes.
Despite this, Maybank analyst Raffy Mendoza said he expects EPS (earnings per share) to grow by 21% in 2026, driven by a recovery in monthly active users and average revenue per user; higher EBITDA margins driven by reduced franchise fees and taxes; and on-going product diversification to build on its market leadership.
“Opportunities for further growth (not yet to factor into our estimates), include expansion into offshore markets and potential acquisition of a traditional casino, resulting in lower franchise fees and taxes,” Mendoza wrote.
Maybank Securities has set a fair value estimate on DigiPlus shares of Php30.80 based on 10-year cash flow.
While risks remain that an increasingly regulated industry may drive changes in player behavior, Mendoza said, “Our view implies that a total ban [of online gaming] is unlikely, and that tighter regulations must be in place.”
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