Online gaming company DigiPlus Interactive Corp. has approved a share buyback program of up to PHP 6 billion ($105.9 million). The move comes after the company’s stock price dropped sharply by 55.8% over the past couple of weeks.
DigiPlus stated that the significant price decline was caused by “fears of an online gaming crackdown.” According to local news reports, the company’s stock fell to PHP 29.50 last week, down from a 52-week high of PHP 65.30.
The buyback program will run for 12 months and will be paid for using the company’s own cash reserves.
The company said the program is designed to boost value for its shareholders and show confidence in its long-term future. DigiPlus Chairman Eusebio Tanco added: “The share repurchase program demonstrates our firm confidence in DigiPlus’ long-term growth and solid fundamentals. We are sending a clear signal that DigiPlus is committed to delivering sustainable returns for shareholders.”
While addressing market concerns at home, DigiPlus is also moving forward with its international growth plans. The company confirmed it is on track to launch its operations in Brazil this September.
It hopes this expansion will unlock new sources of growth in a gaming market it describes as “twice the size of the Philippines.” In preparation, the company has already installed an operations manager in the region.
