DigiPlus posts Q3 net loss as fair-value hit offsets gaming EBITDA growth

Highlights

DigiPlus reports Q3 2026 net loss of P947.58 million, reversing from P1.71 billion profit a year ago, due to P4.52 billion fair-value loss on IEC convertible notes.
Q3 revenue declines 32% to P12.9 billion while EBITDA grows 40% to P2.85 billion and net gaming revenue rises 3% to P5.2 billion despite overall weaker topline.
Retail gaming revenue falls 32% to P44.9 billion in nine months with lower player spending after e-wallet providers remove in-app links to gaming platforms in August 2025.

Quarter results and investment exposure

As reported by BusinessWorld Online, DigiPlus says attributable net loss reaches P947.58 million in the third quarter of 2026, compared with a P1.71 billion profit a year earlier, after a P4.52 billion fair-value loss on financial assets.

The company says the valuation loss is mainly linked to its investment in convertible notes issued by International Entertainment Corp., or IEC. Despite the bottom-line reversal, EBITDA rises 40% to P2.85 billion from P2.04 billion, while third-quarter revenue falls 32% to P12.9 billion from P19.1 billion and net gaming revenue increases 3% to P5.2 billion from P5.1 billion.

For the first nine months of 2026, attributable net income declines 12% to P8.85 billion from P10.11 billion a year earlier. DigiPlus says lower gaming revenues weigh on earnings, partly offset by gains from financial assets measured at fair value through profit or loss, higher finance income, and favorable foreign exchange movements.

In June, DigiPlus completes the second tranche of its subscription to IEC convertible notes after meeting all conditions under the agreement. Under the deal, the company has the option to convert the notes into equity, potentially giving it a 53.89% stake in IEC based on an initial conversion price of HK$1 per share; the notes carry a 3% annual interest rate and are redeemable at 108% of principal after five years if not converted.

IEC owns and operates New Coast Hotel Manila, an integrated hotel and casino complex formerly known as New World Hotel Manila. The property includes gaming tables, slot machines, and other gaming facilities.

Gaming demand pressures and market response

Across the first nine months, consolidated revenue drops 32% to P45.75 billion from P66.83 billion, while EBITDA declines 25% to P8.33 billion from P11.13 billion. DigiPlus attributes the EBITDA decline mainly to lower gaming revenues, though it says the impact is partly cushioned by lower direct gaming costs, reduced advertising and promotional spending, and broader cost-cutting measures.

Retail gaming revenue, which accounts for most of the company’s revenue, falls 32% to P44.9 billion from P65.95 billion. DigiPlus links the decline to lower average player spending and transaction volumes after major electronic wallet providers begin removing in-app access links to licensed gaming platforms in August 2025.

Even with the quarterly net loss, the company says average monthly active users rise 3% quarter on quarter to 5.9 million in the third quarter, while monthly active bettors and depositors increase 5% to 4.9 million. President Ping Chen says DigiPlus remains focused on content development, customer acquisition and retention, and disciplined spending on advertising, promotions, and investments.

DigiPlus shares fall 2.95%, or 20 centavos, to close at P6.58 on Tuesday.

In our earlier article on Philippine sovereign bond-market reforms and planned index inclusion, we explained how the shift in pricing conventions and the expected entry into a major emerging-market government bond index could broaden the investor base and support liquidity and price discovery. We also noted that the benefits are not automatic and depend on factors like global rates and fiscal credibility, while deeper capital-market and governance reforms are still needed to improve companies’ access to financing and translate market signals into real investment.

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