DigiPlus Q1 2026 Net Income Drops 33% to PHP 2.8B as Delinking and Fuel Crisis Weigh

DigiPlus Interactive Corp. disclosed on May 5, 2026 a 32.9 percent year-on-year decline in Q1 2026 net income to PHP 2.82 billion (approximately USD 45.9 million), down from PHP 4.20 billion in the prior-year quarter. Consolidated revenue fell 25.2 percent to PHP 17.24 billion. The company attributed the decline primarily to the August 2025 BSP order requiring e-wallets to delink in-app access to licensed online gaming platforms, which reduced user accessibility and transaction volumes, with additional pressure from tempered consumer sentiment in the ongoing global fuel-driven inflation environment.

The Q1 result is the first quarterly comparison in which both the 2025 base period (Q1 2025, pre-delinking) and the 2026 reporting period (Q1 2026, post-delinking) are fully visible in the financials. It is consequently the cleanest available read on the structural impact of the August 2025 BSP order on DigiPlus's core PIGO and e-Games operations.

The operating-leverage story

The single most consequential pattern in DigiPlus's Q1 2026 numbers is the gap between top-line decline and operating-line decline. Revenue is down 25.2 percent, EBITDA is down 42.5 percent, and operating income is down 49.1 percent. That gap is the signature of operating leverage cutting in the wrong direction: a fixed cost base sized for the pre-delinking addressable market is being absorbed by a smaller post-delinking revenue stream.

DigiPlus runs a substantial fixed infrastructure across its three main platforms — BingoPlus (electronic bingo), ArenaPlus (PIGO sports betting), and PeryaGame (carnival-style games). The fixed costs span technology platform maintenance, payment processing relationships, marketing infrastructure including the content-creator program, KYC and verification infrastructure, and the responsible-gaming and compliance overhead that operates regardless of transaction volume. A revenue decline of 25 percent against that fixed cost base translates mechanically into a sharper decline at each successive profitability line.

The sequential picture is somewhat more reassuring. Q1 2026 revenue of PHP 17.24 billion is broadly flat against Q4 2025 revenue of approximately PHP 17.3 billion, which suggests the post-delinking revenue baseline has stabilized at the new lower level. Net income rose 15 percent sequentially from Q4, supported in part by gains on DigiPlus's investment in convertible bonds issued by International Entertainment Corp. that contributed to the parent-level net income line.

The delinking comparison effect

The Q1 2026 year-on-year comparison absorbs the full impact of the August 14, 2025 BSP delinking order. Q1 2025, the comparison period, predates the BSP order by approximately seven months and represents the high-water mark for DigiPlus's pre-delinking transaction volumes. Q1 2026 represents the first quarter where the comparison clock has fully run on the delinking impact.

The Q2 2026 year-on-year comparison will be similar. Q2 2025 is also fully pre-delinking. Q3 2026 will then become the first comparison period where both quarters are post-delinking, which should produce a year-on-year picture that is structurally cleaner and likely substantially more flattering. DigiPlus management's guidance that recovery is a late-2026 trajectory aligns with this rolling-comparison reality: the company is not anticipating a true operating recovery, but a comparison-base reset that allows the underlying numbers to look better year on year starting from Q3.

The BingoPlus context

DigiPlus's BingoPlus 2026 anniversary disclosure earlier this month positioned the platform's 3 million verified Filipino users and PHP 2.25 trillion cumulative payouts as evidence of a stabilized, deeply engaged user base that has survived the delinking shock. The Q1 2026 financial result reads as the financial-statement complement to that operational story. The verified-user count remains strong, the engagement metrics remain strong, but the absence of in-app e-wallet links has materially compressed the average revenue per user and the funnel-stage conversion that produces the company-wide top line.

Put differently: DigiPlus did not lose its players in the delinking shock to the same degree that some observers expected. What it lost was a layer of the consumer-funnel architecture — the frictionless in-app cash-in path — that previously translated stable engagement into higher transaction volumes. Rebuilding that funnel under a delinked architecture is the operational work that the rest of 2026 will be devoted to.

The Bloomberry comparison

The Q1 2026 DigiPlus result lands alongside Bloomberry Resorts' separately disclosed full-year 2025 net loss of PHP 2.6 billion, which PH Gaming Intel covered in a parallel analysis. The two companies represent the two main exposures within the Philippine gaming sector — DigiPlus as the dominant online-platform operator, Bloomberry as the dominant land-based integrated resort operator with an online entrant in MegaFUNalo — and both posted materially weaker 2025/early-2026 results than they posted in their pre-delinking baselines.

The pattern is structural, not company-specific. The Philippine gaming sector as a whole is operating in a fundamentally different consumer-funnel architecture than it was operating in through July 2025, and the financial expression of that structural shift is now showing up cleanly in both major operators' results.

The CLSA target

CLSA's most recent published research on DigiPlus, dated May 9, 2026, set a 12-month target price of PHP 109 per share, implying a market valuation approaching PHP 485 billion. That target would put DigiPlus ahead of Ayala Corp.'s approximately PHP 354 billion market capitalization, behind only SM Investments among Philippine conglomerates by valuation. CLSA's underlying model projects DigiPlus full-year 2025 profit of approximately PHP 16.56 billion (a roughly 31 percent year-on-year increase from CLSA's pre-publication estimate) and 2026 profit of approximately PHP 19.4 billion.

The Q1 2026 disclosure of PHP 2.82 billion net income annualizes to roughly PHP 11.3 billion if held constant across the year, which is meaningfully below the CLSA full-year projection. The reconciliation between the Q1 run-rate and the CLSA target depends on the recovery curve materializing across H2 2026, which in turn depends on the rolling-comparison reset, the operational rebuilding of the consumer funnel under the delinked architecture, and the macroeconomic backdrop on consumer discretionary spending.

The bottom line

DigiPlus's Q1 2026 numbers describe the financial-statement reality of the post-delinking Philippine online gaming environment. The 33 percent net income decline and 25 percent revenue decline are large, the operating-leverage compression visible across the profitability stack is real, and the rolling year-on-year comparisons remain locked in difficulty through Q2. What the numbers also describe, however, is a sequential stabilization — revenue broadly flat against Q4 2025 — that suggests a new operating baseline has been established at the lower level.

For 2026, the operational question is no longer whether DigiPlus can survive the delinking shock (it has). The question is how quickly it can rebuild the consumer funnel under the new architecture, and whether the late-2026 recovery trajectory that both management and CLSA project actually materializes in the reported numbers. The Q2 2026 disclosure, expected in August, will be the first quarterly data point that begins to answer those questions.