DigiPlus greenlights share buyback program for up to P6 billion
The company will fund the 12-month program through its internal cash flow.
Key points:
– The company hopes to increase shareholder value with this buyback program
– Stock prices have fallen by more than 55% since last week
Online gaming firm DigiPlus Interactive Corp. has recently authorized a share buyback program, according to a Manila Standard local news report.
This program would run for 12 months and will be entirely funded by the company’s internal cash flow, DigiPlus said. However, it may be renewed with approval by the board.
The share buyback program would be up to PHP6bn ($105.9m), following a 55.8% decline in tis share price over the past couple of weeks. The company attributed the price decline to “fears of online gaming crackdown.”
According to the local report, DigiPlus stock prices dropped to PHP29.50 last week from a 52-week high of PHP65.30.
The share buyback program “aims to boost shareholder value and reflects confidence in its long-term outlook,” DigiPlus said.
DigiPlus Chairman Eusebio Tanco further commented: “The share repurchase program demonstrates our firm confidence in DigiPlus’ long-term growth and solid fundamentals.
“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.”
In other company news, DigiPlus recently announced plans to launch its Brazil operations in September and said the company is on task for this move. The company hopes this initiative will be an opportunity for new sources of growth and “unlock a gaming market twice the size of the Philippines.”
DigiPlus has been preparing to bring its content to the region throughout the year and recently installed an operations manager in anticipation of the launch.
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