DigiPlus Receives First-Time B1 Rating from Moody's Amid Expansion Plans

DigiPlus Interactive Corp., a prominent player in the Philippine online gaming market, has received a first-time B1 corporate family rating from Moody's Ratings, accompanied by a stable outlook. This rating signifies the company's strong financial profile and its capacity to take on additional debt to fund its expansion initiatives, according to Moody's Assistant Vice-President Yu Sheng Tay.

As of June 30, 2026, DigiPlus reported a robust cash position of ₱10.5 billion ($186 million) and projected operating cash flow of ₱19.5 billion. Moody's noted that this financial strength would enable the company to cover its capital expenditures of ₱7.6 billion ($136 million), scheduled debt maturities of ₱1.3 billion ($23 million), and shareholder returns of ₱4.2 billion ($75 million) through December 2027.

“DigiPlus’ B1 rating reflects its leadership in the Philippines’ online gaming market and strong financial profile, underpinned by low leverage, robust cash generation and a net cash position.”Yu Sheng Tay, Assistant Vice-President, Moody's Ratings

Moody's anticipates that DigiPlus will maintain a leverage ratio below 0.5 times over the next 12 to 18 months, provided the company refrains from making significant acquisitions or investments. The agency expects the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) to decline to about ₱11.4 billion ($204 million) in 2026, down from ₱14.3 billion ($255 million) in 2025. This expected decline is attributed to the Bangko Sentral ng Pilipinas' directive from August 2025, which mandates mobile wallet and payment providers to delink in-app access to online gaming platforms, alongside broader inflationary pressures impacting consumer spending.

Despite these challenges, Moody's projects a recovery in EBITDA to about ₱14 billion ($250 million) to ₱15 billion ($268 million) in 2027 and 2028, driven by organic growth and contributions from the consolidation of International Entertainment Corp. (IEC) and overseas investments. DigiPlus holds a significant 38.5% share of the Philippine online gaming market, with around six million monthly active users engaging with over 1,000 gaming options, including bingo and sports betting.

In terms of expansion, DigiPlus is venturing into land-based casinos and international markets, including Brazil and South Africa, with combined capital expenditures for these projects estimated at ₱650 million ($11.5 million) over the next two years. Additionally, the company plans to apply for an online gaming license in New Zealand. However, Moody's cautioned that the company's growth ambitions are tempered by execution risks associated with entering new markets and the potential for regulatory changes within the Philippine gaming sector.

“These strengths are balanced by exposure to regulatory change and intense competition in the Philippines’ online gaming sector.”Yu Sheng Tay, Assistant Vice-President, Moody's Ratings

Moody's emphasized that a nationwide prohibition on online gaming in the Philippines is likely to result in a multi-notch downgrade of DigiPlus' rating, given that online gaming constitutes the majority of the company's revenue. The B1 rating is five notches below the Baa2 scorecard-indicated outcome, reflecting DigiPlus' exposure to regulatory changes and its relatively short operational history.

Analysts suggest that maintaining a debt-to-EBITDA ratio below three times could support a potential upgrade of DigiPlus' rating, while a ratio exceeding 3.5 times may exert downward pressure on the rating. The stable outlook reflects Moody's view that DigiPlus will maintain its leading position in the online gaming sector and grow its earnings over the next 12-18 months.