The Philippine online entertainment company DigiPlus Interactive Corp. has passed a 12-month stock repurchase plan totaling 6 billion pesos (approximately 106 million USD), aimed at boosting the frustrated stock price and enhancing shareholder value.
The board stated that the repurchase will be funded by the company's internal cash flow, demonstrating its robust financial condition and long-term development belief. After the announcement, DigiPlus's stock price rebounded strongly, with an increase of about 15%, quickly rising from a 52-week high of 65.30 pesos to 33.80 pesos after falling to 29.50 pesos.
DigiPlus CEO and Chairman Eusebio Tanco said: "This repurchase plan reflects our confidence in long-term growth and fundamental stability. Through strategic capital deployment, we are committed to creating sustainable returns for shareholders while maintaining expansion and innovation capabilities."
Industry analysts say that although the scale of the repurchase plan is huge, compared to the recent daily trading volume of up to 2 billion pesos, the number of trading days it can cover is limited, and it is currently unclear whether it can support a stable stock price in the long term.
At the time of this repurchase plan announcement, DigiPlus is facing uncertainties in online gambling regulatory policies, which the board attributes to the significant drop in stock prices. Meanwhile, the company is closely monitoring regulatory trends. The Philippine Presidential Office also recently expressed support for taxing and controlling online gambling measures.
In addition, DigiPlus has planned to expand to the Brazilian market in September this year and has appointed a dedicated operations manager to prepare for entering the country's online gaming market, which is about twice the size of the Philippines.
This large-scale repurchase not only conveys the company's solid fundamentals and signals of shareholder returns but also indicates its active layout for international expansion, demonstrating resilience and strategic response capabilities in the face of regulatory and market fluctuations.
