DigiPlus unleashes P6 billion share buyback program

MANILA, Philippines — DigiPlus Interactive Corp. is unleashing a P6-billion share buyback program after its share price plummeted last week amid recent efforts by lawmakers to impose stricter regulations on online gambling.

In a stock exchange filing, DigiPlus said its board approved a share repurchase program of up to P6 billion worth of common shares.

The company said the share repurchase program, which is valid over a 12-month period and can be renewed, underscores its strong balance sheet and commitment to maximizing long-term shareholder value.

“The share repurchase program demonstrates our firm confidence in DigiPlus’ long-term growth and solid fundamentals,” DigiPlus chairman Eusebio Tanco said.

With its healthy balance sheet and resilient operations, DigiPlus said the share buyback would be funded through internally generated cash flows.

“By strategically deploying our capital through this buyback, we are sending a clear signal that DigiPlus is committed to delivering sustainable returns for shareholders while remaining well-positioned to pursue expansion and innovation,” Tanco said.

According to DigiPlus, it remains well-capitalized by balancing disciplined capital management with its investments in growth, technology and new markets.

DigiPlus shares surged by 14.58 percent to P33.80 yesterday.

Last week, however, its shares took a heavy beating, ending with a 23.87 percent drop to P29.50 per share on Friday, down by almost 50 percent week-on-week.

The company has attributed last week’s share price slump to market speculation following the filing of the Online Gambling Regulatory bill and Online Gambling Prohibition bills filed at the Senate and House of Representatives since June 30.

DigiPlus said that the bills are still in the early stages of the legislative process and has not been enacted into law.

“DigiPlus remains fully operational and committed to delivering value to our customers and shareholders. We continue to conduct business as usual and remain confident in the long-term growth potential of the company,” it said.

DigiPlus is the company behind popular entertainment platforms BingoPlus, ArenaPlus and GameZone.

It is currently leading the country’s digital gaming space, doubling its registered users to 40 million in 2024 from 20 million in 2023.

To further fuel its growth, DigiPlus is set to launch in September its operations in Brazil, marking the company’s maiden international venture.