DigiPlus shares inch higher despitemarket instability

SHARES OF DIGIPLUS Interactive Corp. edged higher last week despite tariff-driven uncertainties in the local bourse, as analysts remained optimistic about the company’s fundamentals and position in the market.

DigiPlus was the 12th most traded stock on the exchange during the week, with 20.91 million shares worth P730.63 million changing hands from April 7 to 11, data from the Philippine Stock Exchange (PSE) showed.

Week on week, shares of the Tanco-led company inched up by 0.3% to P35.75 on Friday  — slightly higher than the 0.1% gain of the services index and the 0.03% decline recorded in the PSE index.

Year to date, the stock has risen by 31.7% from its P27.15 closing price on Dec. 27, 2024.

Jemimah Ryla R. Alfonso, equity research analyst at Unicapital Securities, Inc., said in an e-mail interview that the online gaming operator’s domestic market exposure kept it insulated from international trade disruptions, which triggered spillover effects from broader market sell-offs last week.

Last Monday, the PSEi dropped to the 5,800 level following an aggressive sell-off driven by global tariff escalations. DigiPlus closed at P32.85 that day, its lowest for the week.

“We believe DigiPlus’s fundamentals remain robust despite the backdrop of shifting US trade dynamics,” said Ralph Jonathan B. Fausto, research associate at China Bank Securities Corp., in an e-mail interview.

In 2024, the company’s revenues surged by 176% to P75.22 billion from P27.25 billion in the previous year. Likewise, the company’s attributable net income rose by 208.5% to P12.58 billion from P4.08 billion.

“With revenues primarily derived from the domestic mass gaming segment, the company is less exposed to the volatility affecting traditional brick-and-mortar gaming operators that rely on inbound tourism for VIP player activity,” said Mr. Fausto.

Ms. Alfonso also said the company could consistently deliver solid gross gaming revenue growth if it maintains strong user base expansion and engagement.

The company’s 2024 integrated annual report showed it had over 40 million registered users across its digital entertainment platforms — up from more than 30 million users in 2023.

Its product portfolio includes digital bingo platform BingoPlus, online sportsbook ArenaPlus, and digital card gaming platform GameZone.

The company’s offerings also feature digital carnival games inspired by traditional Filipino amusements, such as Color Game, Pa Pula, Pa Puti, and Drop Ball.

“We believe DigiPlus could have another banner year as it remains a dominant player in the e-gaming space,” Ms. Alfonso added.

“We expect earnings to remain resilient, backed by a steadily expanding active user base and a proven track record of successfully launching high-engagement gaming products,” said Mr. Fausto.

Mr. Fausto and Ms. Alfonso also said the rollout of DigiPlus’s Brazil operations could serve as a key catalyst for the stock in 2025.

In January, DigiPlus obtained a definitive authority from the Brazilian government, enabling operations in the Brazilian market through its unit, DigiPlus Brazil Interactive Ltda.

“Regarding their expansion strategy — particularly in Brazil — the risk of overextension appears contained. Their Brazil venture is being managed by a different team, which limits operational overlap,” said Ms. Alfonso.

“While the Brazil market offers compelling long-term potential, competitive intensity may moderate the pace of initial market penetration,” said Mr. Fausto.

Ms. Alfonso also said DigiPlus stands as a strong contender for inclusion in the PSEi rebalancing this August, which could serve as another major driver of investor interest and momentum.

However, Mr. Fausto said competitive headwinds may intensify, particularly with the forthcoming entry of integrated resort operators into the online gaming space.

In its annual report, DigiPlus identified competition from Playtime, OKBet, CasinoPlus, Bet88, and other digital gaming operators offering comparable services.

Additionally, Bloomberry Resorts Corp., a holding company for resorts and casinos listed in the 30-member PSEi, said in its own annual report that it is currently developing an online platform intended to compete directly with DigiPlus’s BingoPlus platform.

“We continue to view the online gaming sector as a sunrise industry, with substantial headroom for growth for all industry participants,” Ms. Alfonso said.

For 2025, Ms. Alfonso forecasted DigiPlus to deliver a net income of P16.5 billion.

Mr. Fausto forecasted the company’s earnings to reach P19.9 billion in 2025, driven by continued strength in domestic gaming operations, tempered cost growth, and expected initial contributions from its Brazil operations.

“We currently identify support levels for the stock at P35.25 and P35.85, corresponding to the 20-day exponential moving average,” said Ms. Alfonso.

“Meanwhile, resistance is expected at around the P37.50–P38.40 zone.”

Mr. Fausto pegged support levels at P34.40 and P32, and resistance at P38 and P40. — Pierce Oel A. Montalvo