DigiPlus takes a beating in Q3 from stricter rules
MANILA, Philippines — DigiPlus Interactive Corp. kept its earnings growth in the first nine months, though it began feeling the pinch of stricter rules on online gambling during the third quarter.
The company on Thursday said its consolidated net income reached P10.11 billion, a 16 percent expansion driven by its retail games segment. New product offerings and operational efficiencies provided an added boost.
Revenues in the January to September period also increased by 30 percent to P66.83 billion from P51.56 billion.
However, the group saw weaker performance in the third quarter, with its profit plunging 59 percent to P1.71 billion, after e-wallet giants cut ties with online gambling sites.
READ: BSP: E-wallets must ‘unlink’ from e-gambling sites
The firm’s top line in the July to September period also dropped 23 percent to P19.05 billion.
Last August, the Bangko Sentral ng Pilipinas ordered GCash and Maya to unlink from online gambling platforms.
The proliferation of online gambling had triggered a series of criticisms from the Catholic Church and some lawmakers, as they warned about addiction and possible financial ruin.
Disrupted players
The new rule, the firm noted, disrupted player activity and transaction volumes across the industry.
“This period demonstrates DigiPlus’ resilience amid temporary setbacks. Throughout this period, we continue to focus on digital innovation, player protection and good governance,” company chair Eusebio Tanco said.
READ: To ban or regulate? Senate probes online gambling in PH
To soften the blow on its operations, DigiPlus had teamed up with Philippine First Insurance Co., Inc. to provide financial protection of up to P1 million per verified player wallet.
The firm also partnered with CIS Bayad Center Inc. to further expand its users’ access to over-the-counter payment options.
“As we grow our business and expand responsibly into new markets, we remain focused on upholding global corporate governance and responsible gaming standards, while creating a positive impact on the Filipino nation,” Tanco said. /rwd
