DigiPlus Investors Call for Share Buybacks Amid Growth Plans
Investor Group Urges DigiPlus to Initiate Share Buybacks
A prominent group of investors affiliated with DigiPlus Interactive has expressed concerns about the company’s strategic direction by addressing a formal letter to its board of directors. The investors, comprising Betplay Capital Foundation, ZJ Foundation, and MJ Foundation, collectively hold approximately 1.4% of DigiPlus shares. They are pressing the company to launch an immediate and significant share buyback program to enhance shareholder value.
Buyback Seen as a Way to Correct Undervaluation
The letter, signed by Tomasz Juroszek, represents interests linked to the Juroszek family, a well-known Polish investment group deeply involved in the gambling industry. The group argues that DigiPlus shares are currently undervalued, trading near $0.18 per share while their assessment suggests the true value should be closer to $0.50. Juroszek acknowledged that DigiPlus is managing business challenges competently, with regulated gambling in the Philippines seeing notable growth recently, providing stable revenues.
Despite occasional technical setbacks and economic difficulties linked to geopolitical tensions, Juroszek praised the company’s prudent management, highlighting its debt-free status and healthy cash reserves. However, he urged the company to prioritize share buybacks over other uses of capital, criticizing DigiPlus’s market valuation as weak compared to competitors and suggesting that reducing the number of outstanding shares would offer long-term advantages.
Potential Land-Based Expansion Presents Growth Opportunities
On the other hand, DigiPlus is exploring growth through physical casino operations and is reportedly a strong candidate to acquire City of Dreams in Manila. This expansion would enable DigiPlus to broaden its services and create synergy between online and offline gaming sectors, a strategy common among leading operators. City of Dreams is a major casino in the Philippines, and acquiring it could boost DigiPlus’s brand presence and enhance the quality of its live-streamed content.
Although these prospects are promising, the company has yet to make any public commitments regarding this expansion. With the previous authorization for share repurchases having expired, the investors’ recent letter calls for a renewal and strengthening of this initiative. It remains uncertain whether DigiPlus will prioritize shareholder returns through buybacks or focus on funding expansion efforts, a decision that will impact the company’s future course.
