CLSA stays bullish on DigiPlus amid BSP crackdown on gaming hyperlinks

Stock brokerage home CLSA is doubling down on on-line playing chief Digiplus Interactive Corp., which makes its debt on the PSE index right now, with an “outperform” ranking whilst regulators tighten the screws on on-line gaming.

The reaffirmed name comes simply because the Bangko Sentral ng Pilipinas (BSP) ordered e-wallet suppliers to chop direct hyperlinks to gaming apps, elevating regulatory stress on the booming sector.

The risk of recent guidelines had beforehand prompted CLSA to decrease its worth goal from P109 final May to the more moderen to P81 per share, implying that PLUS is price P365 billion—roughly the scale of Ayala Corp., the nation’s oldest conglomerate, and San Miguel Food and Beverage.

In a brand new Aug. 15 report by CLSA’s Amos Ong titled “Responsible Fun,” the agency maintained its 12-month goal, which is barely extra bullish than consensus estimates.

The worth implies that PLUS’ share worth is affordable at simply 5.6 occasions 2026 earnings, which is way beneath the 15 occasions common for shopper shares, and gives dividends of three to five p.c.

Senate hearings on PLUS begin 

With direct hyperlinks now not obtainable by way of wallets comparable to GCash and Maya, CLSA famous that gamers can nonetheless cash-in and cash-out utilizing e-wallets inside the operators’ apps.

“The BSP is also in the final stages of crafting tighter payment regulations and limiting the role of e-wallets via daily transactions and time-based limits,” it added.

PLUS books strong first half 

PLUS, a pioneer, can construct on its current person base even with the latest BSP transfer. User progress was a standout, with month-to-month lively customers hitting 8.5 million, double from final yr and up 13 p.c quarter-on-quarter.

The firm additionally stays on sturdy footing, posting P4.2 billion in second-quarter web earnings, up 30 p.c year-on-year.

That introduced first-half earnings to P8.4 billion, a 61-percent surge, holding the corporate on observe to satisfy CLSA’s full-year estimate of P19.8 billion.

Margins slim 

Average income per person slipped barely to P950, however gross gaming income rose to P24.4 billion, boosted by larger engagement.

Margins narrowed to 18 p.c as advertising and marketing spend elevated and jackpot payouts, together with one price P935 million in June, weighed on profitability.

Operators kind business group 

Meanwhile, CLSA cited efforts by PLUS and different operators who fashioned the PlaySafe Alliance, committing to accountable gaming and cleaner promoting.

“Nineteen online gaming operators, including PLUS, have formed an industry association, PlaySafe Alliance of the Philippines, to create a unified voice for the licensed online gaming industry,” CLSA famous. 

“Its goal is to combat illegal gaming and adhere to best practices in responsible gaming,” it added.

—Edited by Miguel R. Camus