Several high-profile investors at DigiPlus Interactive have openly questioned the company’s direction with a letter to the board of directors. They demand an immediate and substantial share buyback program, insisting that the company must acknowledge its shareholders by bolstering the value of their investments. The authors of this letter are Betplay Capital Foundation, ZJ Foundation, and MJ Foundation, a group that holds roughly 1.4% of DigiPlus’s shares.
A Buyback Would Bolster DigiPlus’ Share Price
The companies behind these demands are connected to the Juroszek family, a group of influential Polish investors with deep ties to the gambling sector. According to the letter, signed by Tomasz Juroszek, DigiPlus remains severely undervalued. As of the writing of this article, the company’s shares are trading for roughly $0.18. Meanwhile, the investors’ estimates place DigiPlus’ actual value at about $0.50.
Juroszek noted that the company was responding adequately to business challenges. Regulated gambling in the Philippines has skyrocketed in recent months, bringing steady revenue. Despite some technical issues and economic challenges stemming from the ongoing conflict in Iran, Juroszek lauded the board’s steady approach, citing the absence of debt and substantial cash reserves.
While DigiPlus is reportedly considering using its robust financial foundation to fund land-based expansion, Juroszek cautioned against such an approach, asserting that share buybacks must become a priority. He argued that the company had one of the worst valuations among its competitors, adding that reducing the shares now could lead to long-term benefits.
Land-Based Expansion Could Offer Unique Advantages
Despite Juroszek’s arguments, his suggestions could derail DigiPlus’ growth ambitions at a key time. The company has been eyeing an expansion into the land-based sector, and is reportedly a leading contender to acquire City of Dreams, Manila. Such a move would help DigiPlus diversify its offerings, mirroring other leading operators by creating synergies between online and offline gambling.
City of Dreams remains one of the leading casinos in the Philippines, so an acquisition would instantly bolster DigiPlus’ popularity. A high-profile physical location could also help the company improve the quality of its live-streamed content. Despite these advantages, DigiPlus’ management has not publicly committed to a course of action.
With DigiPlus’ previous share purchase authorization now expired, Juroszek’s letter aims to renew and even expand the initiative. It remains unclear whether the company will follow his advice and bolster shareholder value, or use its accumulated capital to pursue further expansion. The decision could shape DigiPlus’ trajectory for the near future.