The operator of online betting platforms such as BingoPlus and ArenaPlus has surged by over 155 percent so far this year and more than 1,400 percent since it received its license to offer digital games in 2022. It trades under the stock symbol PLUS.
PLUS enters cruising altitude, for now
DigiPlus is also the most actively traded non-PSE index stock overall since early 2024, based on Bloomberg data.
While still bullish on the company’s prospects, Tanco cautioned that growth is starting to ease off from its rapid ascent.
“The company is doing very well but maybe the growth won’t be as steep as before. The whole market is expecting 10 percent per month increases. I mean, you cannot do that — pretty soon you will cover the whole population of the Philippines,” he told InsiderPH.
“We’re kinda experiencing it already. We’re coming out with new games, getting into new markets. We’re continuing to do that at an increasing pace. I just want to caution that growth is there, it may not be as steep as before,” he added.
Online games fuel huge profits
DigiPlus Interactive recorded a 377-percent profit spike in the first half of 2024 to P5.2 billion. Revenues soared more than three times to P32.5 billion.
This fueled a massive rally in the stock price, valuing the company at about P90 billion on Monday. This is roughly on par with tycoon Enrique Razon Jr.’s Bloomberry Resorts, the operator of Solaire casinos and hotels, and larger some of the country's top firms.
Brazil provides upside
Tanco said this is why DigiPlus is targeting new markets, including Brazil.
The company recently received clearance to operate in the South American market, which was first reported by the Merkado Barkada financial newsletter.
“It’s not just Brazil. We’re looking at other places where the culture is the same [as the Philippines],” Tanco said.
DigiPlus is a Buy
Stockbrokerage AP Securities rates DigiPlus a “Buy” with a consensus price target of P24.84 per share, which suggests a roughly 21 percent upside.
“The Brazilian sports betting market is magnitudes bigger than the Philippine market,” Alfred Benjamin R. Garcia, AP Securities research head, said in a note to investors.
“With this in mind, if PLUS manages to capture a 5 percent market share in Brazil next year, that would translate to around $145 million (P8.25 billion) in GGR [gross gaming revenue] or almost 10 percent of the 2025 consensus forecast GGR of P85.9 billion for PLUS,” he added.
Costly gaming license, competition
Garcia noted that a gaming license in Brazil was said to cost higher at about P350 million for three years against P200,000 for two years in the Philippines.
“PLUS will also have to tweak its offerings to cater to the Brazilian market, and lean more towards football since that is the most popular sport in that side of the world,” he said.
“Lastly, PLUS will have to tussle in an extremely crowded field of almost 100 players and try to grab market share from more entrenched incumbents,” he added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.