The reaffirmed call comes just as the Bangko Sentral ng Pilipinas (BSP) ordered e-wallet providers to cut direct links to gaming apps, raising regulatory pressure on the booming sector.
The threat of new rules had previously prompted CLSA to lower its price target from P109 last May to the more recent to P81 per share, implying that PLUS is worth P365 billion—roughly the size of Ayala Corp., the country’s oldest conglomerate, and San Miguel Food and Beverage.
In a new Aug. 15 report by CLSA’s Amos Ong titled “Responsible Fun,” the firm maintained its 12-month target, which is slightly more bullish than consensus estimates.
The price implies that PLUS’ share price is cheap at just 5.6 times 2026 earnings, which is far below the 15 times average for consumer stocks, and offers dividends of 3 to 5 percent.
Senate hearings on PLUS start
With direct links no longer available via wallets such as GCash and Maya, CLSA noted that players can still cash-in and cash-out using e-wallets within 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 solid first half
PLUS, a pioneer, can build on its existing user base even with the recent BSP move. User growth was a standout, with monthly active users hitting 8.5 million, double from last year and up 13 percent quarter-on-quarter.
The company also remains on strong footing, posting P4.2 billion in second-quarter net income, up 30 percent year-on-year.
That brought first-half earnings to P8.4 billion, a 61-percent surge, keeping the company on track to meet CLSA’s full-year estimate of P19.8 billion.
Margins narrow
Average revenue per user slipped slightly to P950, but gross gaming revenue rose to P24.4 billion, boosted by higher engagement.
Margins narrowed to 18 percent as marketing spend increased and jackpot payouts, including one worth P935 million in June, weighed on profitability.
Operators form industry group
Meanwhile, CLSA cited efforts by PLUS and other operators who formed the PlaySafe Alliance, committing to responsible gaming and cleaner advertising.
“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 noted.
“Its goal is to combat illegal gaming and adhere to best practices in responsible gaming,” it added.
—Edited by Miguel R. Camus
