DigiPlus Q2: GGR Falls 9% Despite 26% User Surge

Kyle Kevin

iGaming Writer

Fact Checked

DigiPlus GGR dropped 9% quarter-on-quarter to PHP15.61 billion despite a 26% surge in bettors. The Philippine operator is spending aggressively to acquire users in a market PAGCOR warns could contract 19% this year.

DigiPlus Interactive grew its user base 26% in Q2. Its GGR still fell 9%. The Philippine digital gaming operator reported PHP15.61 billion in gross gaming revenue for the quarter, down from Q1 levels. Monthly average bettors and depositors hit 4.68 million. Aggregate monthly active users reached 5.75 million. Those are record audience numbers. The revenue did not follow. DigiPlus blamed an aggressive user acquisition push and the macroeconomic environment. The explanation is credible. New players typically bet smaller amounts. Promotional spending to acquire them dilutes margin. However, the disconnect also reflects broader market stress. PAGCOR chairman Alejandro Tengco warned in June that industry-wide GGR could drop 19% in 2026. Tighter e-wallet restrictions and Middle East conflict-linked economic pressure are the drivers. DigiPlus is swimming against that current. Net gaming revenue after tax, a new metric the company introduced this quarter, rose 0.9% to PHP5.52 billion. The margin hit 35%. EBITDA climbed 7% to PHP2.84 billion. Margins expanded. Reported net income surged 124% to PHP6.98 billion. That figure is misleading. A fair-value gain from IEC convertible notes accounted for most of it. Core net income was PHP2.35 billion, up 8%. The real story is user growth outpacing monetization in a contracting market.

Q2 Results: More Users, Less Revenue

DigiPlus added users at a pace that would impress any growth investor. Monthly average bettors and depositors rose 26% quarter-on-quarter to 4.68 million. Total monthly active users averaged 5.75 million. Both are company records. The platforms driving this are BingoPlus, ArenaPlus, and GameZone.

GGR moved in the opposite direction. The PHP15.61 billion figure was down 9% from Q1. That translates to roughly $255 million. For context, DigiPlus is the largest digital gaming operator in the Philippines by user count. Its GGR decline is not a company-specific problem. It is a market-wide signal.

The revenue per user math is stark. Divide GGR by monthly active users and the average quarterly spend per player drops significantly. Either new users are betting less, existing users are betting less, or both. DigiPlus says it is the former. The acquisition push brought in low-value players. Converting them to higher spenders is the next challenge.

Why GGR Fell Despite User Growth

DigiPlus attributed the GGR decline to two factors. First, an aggressive push to acquire new users. Second, the macroeconomic environment. Both are valid. Together they explain the divergence.

User acquisition in digital gaming is expensive. Promotional credits, referral bonuses, and advertising spend all hit the top line before revenue materializes. DigiPlus ramped up that spending in Q2. The result was a flood of new registrations with low initial betting volumes. The lifetime value of those users may be positive. The quarterly GGR is not.

The macro environment compounded the pressure. Philippine inflation has remained elevated. Disposable income is tight. E-wallet restrictions, tightened by regulators to combat fraud and money laundering, have made deposits harder for some users. The Middle East conflict has driven up oil prices, squeezing import-dependent economies across Southeast Asia. DigiPlus operates in that environment. It cannot control it.

NGR, Margins, and the New Metric

DigiPlus introduced a new operating metric in Q2: net gaming revenue after tax. The measure strips out PAGCOR’s regulatory share, game provider fees, marketing and promotional costs, payment channel fees, and other direct gaming expenses. It is a cleaner read on operational profitability than raw GGR.

NGR after tax rose 0.9% quarter-on-quarter to PHP5.52 billion, roughly $90 million. The margin reached 35%. That is a strong number for a digital gaming operator in a promotional quarter. It suggests the user acquisition spend is generating returns, even if GGR does not yet reflect it.

EBITDA told a similar story. The figure grew 7% to PHP2.84 billion. The margin expanded from 15.3% to 18.2%. Operating efficiencies and cost controls drove the improvement. DigiPlus is getting leaner even as it gets bigger. That discipline will matter if the Philippine market contracts as PAGCOR predicts.

IEC Investment and Reported Profit

Reported net income surged 124% to PHP6.98 billion. The headline is eye-catching. The cause is accounting, not operations. A fair-value gain from DigiPlus’s investment in International Entertainment Corporation convertible notes drove the jump.

DigiPlus deployed PHP12.2 billion for the IEC notes in the first half of 2026. The investment gives DigiPlus exposure to IEC’s Manila casino hotel, which is undergoing a $9.2 million upgrade. The convertible structure means DigiPlus can convert the notes to equity at a future date. The fair-value gain reflects mark-to-market appreciation of that option.

Core net income, excluding the IEC gain, was PHP2.35 billion. That Arden Consult is up 8% quarter-on-quarter. It is the better measure of operational health. The company retained PHP10.51 billion in cash and equivalents after the IEC investment and a PHP3.8 billion dividend payment. The balance sheet is solid. The reported profit is not repeatable.

The Philippine Market Headwinds

PAGCOR’s warning frames the entire quarter. Chairman Tengco said industry-wide GGR could fall 19% in 2026. That is a severe contraction. The causes are regulatory and economic. Tighter e-wallet restrictions have reduced deposit velocity. Economic pressures linked to the Middle East conflict have squeezed consumer spending. The Philippine peso has weakened against the dollar, raising import costs and inflation expectations.

DigiPlus is not immune. However, it is better positioned than most. The 26% user growth proves the acquisition engine still works. The 35% NGR margin proves the unit economics hold. The challenge is scaling revenue per user before the market shrinks further. President Ping Chen is optimistic. He forecast “significantly higher GGR and NGR, as well as significantly higher profitability” in coming quarters. That depends on converting the new user base from low-stakes trialists to regular bettors.

The company is betting on technology to drive that conversion. Product R&D consumed 5% of revenue in Q2. The goal is a Gaming-as-a-Service ecosystem built on proprietary content and data-driven personalization. If it works, DigiPlus can lift spend per user without lifting acquisition costs. If it fails, the user growth becomes a vanity metric in a declining market.

Frequently Asked Questions

This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.