DIGIPLUS Interactive Corp. emerged as one of the most actively traded stocks last week following the government’s announcement of a ban on online gaming operators, which caused investors to sell shares.
Data from the Philippine Stock Exchange showed that a total of 32.44 million shares worth P482.95 million were traded from July 22 to 26, positioning DigiPlus as the 10th most active stock in the local market during that period.
The listed digital gambling company’s shares decreased by 1.8% week on week, closing at P15.52 per share, down from P15.80 per share on July 19.
Year to date, DigiPlus’ share price has increased almost 100% from P8 per share.
Trading was suspended on July 24 due to heavy rains brought by Typhoon Carina.
The recent ban on Philippine offshore gaming operators (POGOs) and internet gaming licensees (IGLs) has caused a decline in the company’s stock this week, as investors believed DigiPlus would be affected by the ban, said Philstocks Financial, Inc. Research Analyst Claire T. Alviar in an e-mail.
“On a positive note, it was immediately clarified that the license of Digi-Plus is different from those of POGOs and IGLs. This means that DigiPlus is not negatively affected by this ban in any way,” Ms. Alviar said.
“Since it was not cleared up at first, many thought it would be affected and sold shares, causing a nearly 7% drop during intraday trading last Tuesday from Monday’s closing price. As it was clarified that it would not be affected, investors returned to buy shares. It slowly regained momentum, however, it still failed to post gain last week, losing 1.77% week on week,” Ms. Alviar said.
During President Ferdinand R. Marcos, Jr.’s third State of the Nation Address last week, he announced the ban on all POGOs, saying that they have been linked to money laundering and financial scams.
DigiPlus issued a statement saying that the company is not a POGO or an IGL as defined by Philippine laws and assured local gaming enthusiasts that they need not worry.
“Fans of DigiPlus’ products will be glad to know that their top-of-the-line platforms will continue running without interruption, unaffected by the recent presidential announcement,” DigiPlus President Andy Tsui said in a statement.
DigiPlus said that it is a localized digital gaming company, serving customers based in the Philippines and operating physical branches across the country.
DigiPlus saw its first-quarter attributable net income rise by more than four times to P2 billion from P436.77 million posted in the same period last year, driven by better revenues and higher user traffic.
Meanwhile, its revenues soared by more than two times to P13.63 billion from P4.18 billion in the first quarter of 2023, led by growing user traffic in its flagship platforms BingoPlus and ArenaPlus digital sportsbook, as well as fresh contributions from new game offerings.
“Given the strong first-quarter performance of DigiPlus, we expect it to continue its momentum this year particularly with the launch of new game offerings. The possibility that it may sustain revenue growth of around 200% year on year is high,” added Ms. Alviar.
Ms. Alviar saw the stock immediate support at P14.80 per share, while the second support was pegged at P13.80 per share. The resistance was pegged at its 52-week high, P15.90 per share. — Lourdes O. Pilar
