DigiPlus Revives Share Buyback With $87 million Budget

DigiPlus Interactive Corp. has revived its share buyback programme with an authorised budget of about PHP5.36 billion ($87 million), extending the initiative for another 12 months after shareholders urged the company to increase capital returns.

In a disclosure to the Philippine Stock Exchange, the company stated that its board had approved the revival of its Share Buy-Back Program. The decision came only three days after investment foundations linked to Poland’s Juroszek family published an open letter encouraging the board to renew and expand the programme.

The shareholders argued that buying back shares was the best use of DigiPlus’ capital while its stock traded below what they believe is its intrinsic value. This renewed programme follows DigiPlus’ first buyback, launched in July 2025. 

At the time, the board approved a PHP6 billion ($97.4 million) repurchase plan funded through internal cash flows to support investor confidence after regulatory concerns affected the Philippine online gaming sector. This programme was scheduled to run for 12 months, with the option of an extension.

Investors argue DigiPlus shares remain undervalued

In their 6 July letter, the Betplay Capital Foundation, ZJ Foundation and MJ Foundation, which collectively own about 1.4% of DigiPlus, described a renewed repurchase as “the single most value-accretive action available to DigiPlus today.”

“We urge the Board to pursue a substantial share buyback programme at current prices, which we believe is by far the greatest value creation opportunity available to shareholders today,” the shareholders wrote.

The investors said DigiPlus is “the lowest-valued B2C operator in the entire peer group across every major valuation metric.” According to their analysis, the company trades at around 2.4 times expected 2026 EV/EBITDA and 0.4 times EV/Sales, well below comparable listed gaming businesses.

Shareholders believe the company can build a larger programme

The foundations estimated that valuing DigiPlus in line with global peers would imply a share price of about PHP30, representing over 150% upside from recent trading levels.

“The shares are so far below any reasonable estimate of fair value that buying them back is worth more to shareholders than any other use of that capital we can identify,” the letter said.

They also pointed to DigiPlus’ financial position, noting the company holds more than PHP20 billion ($324.6 million) in cash while carrying minimal debt. The investors suggested postponing non-essential land-based capital expenditure and directing more capital towards share repurchases while the stock remains undervalued.

According to the letter, a consistent buyback programme would improve earnings and free cash flow per share, demonstrate management’s confidence in its valuation, and provide a more tax-efficient method of returning capital than dividends.