DIGIPLUS Interactive Corp. posted an attributable net loss of P947.58 million in the third quarter of 2026, a sharp reversal from the P1.71-billion profit recorded a year earlier, after a P4.52-billion fair-value loss on financial assets weighed on results.

The bottom-line swing came despite a 40% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to P2.85 billion from P2.04 billion, according to the company’s quarterly financial disclosure to the Philippine Stock Exchange on Tuesday. The disconnect reflects how financial assets carried at fair value through profit or loss are remeasured at each reporting date, sending valuation swings directly into net income even when the underlying operations hold up — a dynamic that has cut both ways for DigiPlus this year.

The fair-value loss was driven mainly by DigiPlus’s investment in convertible notes issued by International Entertainment Corp. (IEC).

Third-quarter revenue declined 32% to P12.9 billion from P19.1 billion, while net gaming revenue rose 3% to P5.2 billion from P5.1 billion.

For the first nine months of 2026, attributable net income fell 12% to P8.85 billion from P10.11 billion a year earlier, as lower gaming revenues weighed on earnings. DigiPlus said the decline was partly offset by gains on financial assets measured at fair value through profit or loss (FVPL), higher finance income, and favorable foreign-exchange movements.

Consolidated revenue for the period dropped 32% to P45.75 billion from P66.83 billion, while EBITDA declined 25% to P8.33 billion from P11.13 billion. The company attributed the EBITDA contraction mainly to lower gaming revenues, partially offset by lower direct gaming costs, reduced advertising and promotional spending, and cost-cutting measures.

Retail gaming revenue, which accounts for the bulk of the company’s revenue, fell 32% to P44.9 billion from P65.95 billion. DigiPlus attributed the decrease to lower average player spending and transaction volumes after major electronic-wallet providers began removing in-app access links to licensed gaming platforms starting in August 2025.

The nine-month results included a P2.23-billion net gain on financial assets measured at FVPL, arising mainly from the investment in IEC convertible notes. In June, DigiPlus completed the second tranche of its subscription to the notes after satisfying all conditions under the agreement. The same holdings that dragged on the third quarter had lifted results earlier in the year, leaving the nine-month FVPL line in positive territory despite the P4.52-billion quarterly loss.

Under the agreement, DigiPlus holds the option to convert the notes into equity, potentially giving it a 53.89% stake in IEC based on an initial conversion price of HK$1 per share. The notes carry a 3% annual interest rate and are redeemable at 108% of their principal amount after five years if not converted. Which path prevails — conversion into a controlling stake or redemption at a premium after five years — will determine the eventual scale of DigiPlus’s exposure to IEC and its Manila casino property.

IEC owns and operates New Coast Hotel Manila, an integrated hotel and casino complex formerly known as New World Hotel Manila. The property features gaming tables, slot machines, and other gaming facilities.

Despite the third-quarter net loss, DigiPlus recorded higher EBITDA and net gaming revenue during the period. Average monthly active users increased 3% quarter on quarter to 5.9 million, while monthly active bettors and depositors rose 5% to 4.9 million.

DigiPlus President Ping Chen said the company would continue to focus on developing content, expanding its customer base, and managing expenses. “We remain focused on sustainable growth through self-development of compelling content, stronger user acquisitions and retention, and disciplined spending on A&P and investments,” he said in a separate statement on Tuesday.

On Tuesday, DigiPlus shares fell 2.95%, or 20 centavos, to close at P6.58 apiece. — Alexandria Grace C. Magno