DigiPlus Interactive Corp sees reduced revenue outlook amid expected margin improvements

(AsiaGameHub) –   DigiPlus is set to shift its focus to higher-value customers as it adapts to stricter regulations in the Philippines; this move may slow near-term growth but will help bolster profit margins over the long run, according to Maybank Securities.

Per Maybank, DigiPlus is moving away from prioritizing growth in its monthly active user count and instead doubling down on monetizing its existing user base. Under this new strategy, the company aims for a smaller but more engaged customer pool whose average spending will be higher than what it has previously recorded.

Commenting on the strategic shift, Maybank analyst Raffy Mendoza noted that this move reflects the company’s ability to adapt to the recently implemented regulatory changes and the anticipated impact these rules will have on its future performance. As a result, Maybank has also lowered its revenue forecasts by 12% for 2026 and 18% for 2027, citing the expected decline in monthly active users, which will only be partially offset by growth in average revenue per user.

DigiPlus holds a HKD 1.6 billion convertible note agreement that could convert to a 53.89% ownership stake in International Entertainment, which owns and operates the New Coast Hotel Manila and holds a provisional licence from the Philippine Amusement & Gaming Corporation.

Thanks to this commercial agreement, DigiPlus will benefit from further reduced PAGCOR taxes levied on integrated casino operations. These costs dropped to roughly 31.5% in Q4 2025, down from the 38% to 39% rate seen at the start of the year. If this trend continues, the company’s EBITDA margin is projected to rise to 19.7% in 2027, up from 16.9% in 2025.

Maybank estimates that DigiPlus will achieve 8% net income growth in 2026 and 22% in 2027, indicating that improved profit margins will offset the overall slower revenue growth.

The company is also expanding internationally, having recently secured approval to operate in South Africa following its earlier entry into the Brazilian market. However, Maybank has not yet factored in contributions from these new markets due to limited visibility on their execution.

Overall, the brokerage sees DigiPlus shifting toward a more targeted, profitability-focused business model — trading rapid user growth for stronger long-term returns amid a more challenging regulatory environment.