DigiPlus is cutting costs after reporting a 17% year-on-year fall in net gaming revenue after tax for the first nine months of 2026. The Philippines-based operator recorded P16.2bn and cited a “weaker macroeconomic environment” as the country faces economic pressure linked to tensions in the Middle East.
Stakeholders in the Philippines have said rising living costs are affecting consumer spending. They have linked the increases to supply-chain disruption caused by the conflict between the US and Iran.
Efficiency measures support margins
DigiPlus said it had focused on “more effective deployment of advertising and promotional spending” and on optimising gaming costs and operating expenses. Its EBITDA margin improved to 22%, while third-quarter EBITDA edged up to P2.9bn.
“Our first nine months’ performance reflects the progress we are making in strengthening operating efficiency while building our user base and content,” said DigiPlus President Ping Chen.
User activity rose despite the weaker results. Average monthly active users increased 3% quarter-on-quarter to 5.9 million, while monthly active bettors and depositors grew 5% to 4.9 million.
PAGCOR revenue also declines
PAGCOR reported that revenue through the third quarter fell 23.4% to P64.4bn, from P84.1bn in the same period last year. Electronic gaming revenue dropped by more than 37%, from P44bn to P27.6bn. Revenue from licensed casinos, Casino Filipino and poker operations also recorded single-digit declines over the first nine months of the year.
PAGCOR said it contributed P45.3bn to nation-building between January and September 2026. Its Chair and Chief Executive Alejandro Tengco has previously called for continued regulatory evolution.
Keith McDonnell, Director of KMI Group, said PAGCOR needs to balance regulatory changes against the risk of driving activity to the grey market through overly restrictive taxes and rules.
“I think [PAGCOR is] right in saying, from a macro point of view, the Middle East is a big factor on discretionary income. But aligned with that, they’ve had some direct decisions as well that have impacted [performance].
“They’ve been quite strong on increasing advertising restrictions, also making it more difficult for payments in and out of the local companies by taking payment options out of GCash, which is a hub that most of the Filipinos use.”
DigiPlus said its net gaming revenue after-tax margin, measured against gross gaming revenue, was 40%, a level that makes the Philippines’ operator tax rate comparable to many more mature markets, including those in Europe. The company paid P13.9bn in taxes and regulatory fees during the first nine months of 2026.
