DigiPlus profit drops 33% as e-wallets cut gaming links

DigiPlus Interactive Corp., operator of BingoPlus, ArenaPlus, and GameZone, reported a 33% drop in its first-quarter net income, citing the government-mandated delinking of e-wallets from gaming platforms and weaker consumer sentiment.

The company said net income fell to P2.8 billion as total revenues declined 25% to P17.2 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) contracted 42% to P2.6 billion.

“Our first-quarter performance reflects the softness following the delinking of licensed gaming platforms from e-wallet access points, which has affected user activity and transaction flows,” DigiPlus chairman Eusebio Tanco said in a regulatory filing.

The development comes after the Bangko Sentral ng Pilipinas (BSP) in August ordered e-wallet providers to remove links to online gambling platforms.

Major providers such as GCash and Maya subsequently disabled access to gambling sites on their platforms.

“Nonetheless, our fundamentals remain intact, and we remain confident in the long-term growth trajectory of the business as we adapt our payments ecosystem, strengthen player engagement, and continue to lead with responsible, innovative digital entertainment,” Tanco added.

DigiPlus ended the first quarter with P20.5 billion in cash and cash equivalents and a P745.8-million debt load, bringing its debt-to-equity ratio to 0.02.

Shares of the company closed Tuesday at P14.80 apiece, down 10 centavos or 0.67% from Monday’s close of P14.90.—MCG, GMA News