DigiPlus earnings eased by 12% to P8.9B

DigiPlus Interactive Corp.’s nine-month net income fell by about 12 percent to P8.9 billion from P10.11 billion a year earlier as the gaming company faced weaker revenues amid a softer macroeconomic environment.

The gaming company said its earnings included noncash fair value gains from its investment in International Entertainment Corp.’s (IEC) convertible bonds.

Net gaming revenue (NGR) after tax declined by 17 percent year-on-year to P16.2 billion, although tighter spending helped improve operating margins.

Nine-month earnings before interest, taxes, depreciation and amortization (Ebitda) reached P8.3 billion.

In the third quarter, Ebitda edged up 0.3 percent from the preceding quarter to P2.9 billion. Its Ebitda margin widened by four percentage points to 22 percent over the same period.

DigiPlus attributed the margin improvement to more efficient advertising and promotional spending, optimization of direct gaming costs and stricter control of operating expenses.

The firm’s NGR after-tax margin, measured against gross gaming revenue, also expanded by 5 percentage points quarter-on-quarter to 40 percent.

Introduced in the second quarter, NGR after tax measures gaming revenue retained after deducting regulatory share of the Philippine Amusement and Gaming Corp. as well as fees, game provider fees, marketing and promotional expenses, payment channel fees, other direct gaming costs and applicable taxes.

More active users

Despite the revenue decline, average monthly active users grew 3 percent quarter-on-quarter to 5.9 million. Monthly active bettors and depositors increased by 5 percent to 4.9 million.

“We remain focused on sustainable growth through self-development of compelling content,” DigiPlus president Ping Chen said, also citing customer acquisition, retention and spending discipline.

DigiPlus ended September with P11.7 billion in cash and cash equivalents, up 11 percent from the previous quarter.