By Pierce Oel A. Montalvo, Researcher
SHARES of DigiPlus Interactive Corp. declined last week amid investor concerns over the sustained impact of regulatory changes on its online gaming operations, despite the corporate’s declaration of P3.8 billion in dividends and efforts to diversify into offline gaming.
Data from the Philippine Stock Exchange (PSE) showed DigiPlus because the seventh most actively traded stock through the week, with 58.27 million shares price P1.06 billion changing hands.
Shares of the digital gaming firm closed at P18.26 on Thursday, down 4.3% from P19.08 previously. This underperformed the benchmark PSE index (PSEi), which declined by 0.67%, while the services sector index rose by 1.27%.
12 months thus far, the stock posted a 12.72% gain, outperforming the PSEi’s 0.57% decline but lagging behind the services sector’s 15.72% increase.
Trading was suspended on Friday as a consequence of the Eid’l Fitr holiday.
In a disclosure on Tuesday, DigiPlus reported flat net income of P12.6 billion for full-year 2025. Total revenues rose by 12% to P84.2 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 2% to P14.2 billion.
Nevertheless, fourth-quarter performance weakened. Net income declined by 36% yr on yr to P2.5 billion, while revenues fell by 27% to P17.3 billion and EBITDA dropped by 32% to P3.1 billion.
The corporate attributed the fourth-quarter decline to the continued impact of the third-quarter delinking of electronic wallet (e-wallet) in-app access to licensed online gaming platforms, a regulatory adjustment that temporarily reduced user activity across its digital platforms.
In August, the Bangko Sentral ng Pilipinas (BSP) directed e-wallets, banks, and other supervised institutions to remove in-app gambling access. The central bank also proposed measures similar to biometric identification checks, each day transaction limits, time-based payment restrictions, and tools for spending caps, voluntary breaks, and self-exclusion.
“DigiPlus flat earnings was driven by the recent regulatory issues which pushes the gaming platforms to remove their sites on online tech platforms including GCash,” said Jash Matthew M. Baylon, equity analyst at The First Resources Management and Securities Corp.
“On the positive note, the delinking of its site on GCash opens opportunities for the firm because it develop its own application,” he added.
Despite regulatory headwinds, DigiPlus maintained its dividend policy. The board approved a money dividend of P3.8 billion, akin to 30% of full-year 2025 consolidated net income attributable to shareholders, or P0.83 per common share.
The dividends might be payable on or before April 15, 2026 to shareholders on record as of April 1, 2026.
The corporate ended 2025 with P23.4 billion in money and money equivalents, while debt stood at P745.8 million.
Throughout the yr, DigiPlus invested P12 billion in International Entertainment Corp. (IEC), a Hong Kong-listed firm that owns and operates Recent Coast Hotel Manila, a Philippine Amusement and Gaming Corp. (PAGCOR)-licensed integrated resort in Malate, Manila.
The investment provides DigiPlus an option to accumulate a 53.89% stake in IEC, establishing what the corporate described as “a possible strategic offline platform designed to enhance its digital network.”
Jeff Radley C. See, head trader at Mercantile Securities Corp., said the move into offline gaming could function a hedge against regulatory risks.
“The move of DigiPlus to speculate within the offline gaming can safeguard them for future restrictions/regulations that the federal government might impose,” Mr. See said.
Mr. Baylon added that “the recent regulatory issue may additionally push DigiPlus to expand on offline gaming as it might cater traditional casino players and diversifying its income flow preparing for the potential headwinds on online gaming brought by regulatory pressures.”
DigiPlus also advanced its overseas expansion plans in 2025, establishing a Singapore hub for strategic partnerships and company functions. The corporate allocated P660 million in capital expenditures for its planned entry into Brazil and filed a license application with the Western Cape Gambling and Racing Board in South Africa.
Nevertheless, Mr. Baylon said external aspects may affect expansion timelines.
“We consider that DigiPlus expansion plans overseas could possibly be hampered by the present tensions within the Middle East because the local currency continued to weaken which can affect its expansion costs,” he said.
He added that the conflict has affected global oil supply, which is “inflationary in nature, weakening the purchasing power of consumers in addition to their disposable income, which could also affect DigiPlus performance because it heavily relies on consumers’ disposable income.”
Mr. See said expansion-related spending can have contributed to the corporate’s flat earnings.
“These expansions may be the rationale why they’ve a flat income in 2025,” he said.
Looking ahead, analysts said regulatory developments will remain a key factor.
Mr. See said DigiPlus “is resilient since every part is online and other people can easily access their gaming apps.”
He added that “there are also efforts from PAGCOR that the gaming may be available to e-wallets again. Early 2026, PAGCOR might be presenting to BSP a brand new proposition that may defend their return.”
For this yr, Mr. Baylon said investors should monitor “the corporate’s overseas expansion as it might introduce its offerings on recent environment as well could attract recent players.”
He added that “DigiPlus earnings moving forward will normalize as headwinds began to die down.”
Mr. See said market participants are prone to concentrate on the corporate’s ability to navigate regulatory changes and execute its diversification strategy.
On the technical side, Mr. See placed support levels at P17 and P15, with resistance levels at P20.30 and P22.50.
Mr. Baylon, meanwhile, set support at P16.50 and resistance at P20.