Moody’s puts DigiPlus first rating at ‘B1’ with stable outlook
Moody’s Ratings has assigned DigiPlus Interactive Corp. its first corporate family rating, citing the gaming firm’s dominant position in the local online market and strong financial profile despite regulatory and expansion risks.
The digital entertainment platform led by tycoon Eusebio Tanco said on Friday that the global credit ratings agency gave the company a B1 corporate family rating with a stable outlook.
The rating means lending to DigiPlus is roughly middle-tier “non-investment grade.” Still, it is the top notch of the highly speculative category.
“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, “ said Yu Sheng Tay, assistant vice president at Moody’s Ratings.
“These strengths are balanced by exposure to regulatory change and intense competition in the Philippines’ online gaming sector,” said Tay.
Moody’s estimates that DigiPlus is now the country’s largest online gaming operator, cornering a 38.5-percent market share with about six million monthly active users.
The firm’s platforms offer more than 1,000 games spanning bingo, electronic games and sports betting.
Still, the ratings agency expects DigiPlus’ earnings to take a hit this year.
Moody’s projects its earnings before interest, taxes, depreciation and amortization (Ebitda) to fall to about P11.4 billion in 2026 from P14.3 billion last year.
The credit rater attributed the potential decline partly to the central bank’s directive issued in August 2025 that requires mobile wallet and payment providers to delink in-app access to online gaming platforms.
The measure reduced industry-wide online gross gaming revenue.
High fuel prices, inflationary pressures and weaker consumer sentiment have also weighed on discretionary gaming spending.
Moody’s, however, expects DigiPlus’ Ebitda to recover to around P14 billion to P15 billion in 2027 to 2028, supported by organic growth, the consolidation of International Entertainment Corp. (IEC) and overseas investments.
The company is expanding beyond its core Philippine online gaming business.
Its investment in IEC convertible notes gives DigiPlus the option to acquire majority control of IEC upon conversion, increasing its potential exposure to IEC’s capital commitments for LaVie Resort & Casino Manila.
Moody’s expects leverage to remain below 0.5 times over the next 12 to 18 months, absent significant acquisitions or investments.
The stable outlook assumes DigiPlus will retain its leadership in the Philippine online gaming market, grow earnings over the next 12 to 18 months and adapt to evolving regulations while pursuing its expansion prudently.
Still, Moody’s flagged regulatory changes, intense competition and execution risks from the company’s land-based and overseas expansion.
The agency warned a nationwide prohibition on online gaming could trigger a multi-notch downgrade, as the segment accounts for most of DigiPlus’ revenue.
