DigiPlus shares rebound after over $100 million buyback plan
DigiPlus Interactive Corp.’s shares rallied by 14.58 percent on Monday after the company unveiled a share buyback programme worth up to PHP6 billion ($106.4 million). The plan, approved by its board of directors, aims to boost investor confidence following a steep drop in share value earlier this month.
According to DigiPlus, the buyback, to be funded through internal cash flows, is a response to the heavy market volatility and recent legislative threats to the online gaming sector in the Philippines. It will run for 12 months and may be extended with board approval.
Analysts noted the move could help stabilise share prices in the short term and signal the firm’s commitment to long-term growth. However, some cautioned that the buyback’s size may not be sufficient to offset recent trading volumes, which have reached PHP2 billion ($35.5 million) per day.
On Monday, DigiPlus shares closed at PHP33.80 ($0.60) each, a recovery from Friday’s close of PHP29.50 ($0.52). Despite the gain, the stock has remained down 35 percent since the start of July.
Proposed legislation casts shadow on iGaming sector
The rebound followed a week of sharp losses driven by growing scrutiny of the Philippine iGaming industry. Senator Sherwin Gatchalian filed a bill on 1 July seeking stricter controls on online gambling platforms.
The proposed legislation includes measures such as a PHP10,000 ($177) minimum top-up requirement, a ban on e-wallets like GCash and Maya from processing gambling payments and raising the legal gambling age from 18 to 21. Lawmakers said they aim to prevent low-income individuals from easily accessing gambling platforms.
Meanwhile, industry analysts warned that the proposals could hurt operators like DigiPlus and Bloomberry Resorts Corp., which recently entered the online gaming space. While high-value players may be less affected by the cash-in threshold, new restrictions could reduce betting volumes and impact earnings.
Expansion plans may offset domestic headwinds
DigiPlus is looking beyond the domestic market as it prepares to launch operations in Brazil. Last week, the company announced it will begin operations in the South American country by September. This development marks the company’s first expansion outside Southeast Asia, aiming to tap into one of Latin America’s most promising digital gaming markets.
In the first quarter, DigiPlus more than doubled its net profit to PHP4.2 billion ($74.5 million), driven by the continued strong performance of its platforms, BingoPlus, ArenaPlus, and GameZone.
