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"Trading far below fair value" – Betplay Capital writes open letter to DigiPlus

Betplay Capital has urged DigiPlus Interactive’s board to renew and expand its share repurchase programme, arguing that the group’s valuation does not reflect its operating performance or cash position.

2 min read
buyback
Key Points
Betplay Capital wants DigiPlus to renew and expand its share buyback authority
The investor argues that DigiPlus’s valuation is below comparable listed gaming operators
DigiPlus reported lower year-on-year Q1 revenue and net income, while maintaining a sizeable cash balance

Betplay Capital has called on the board of DigiPlus Interactive to pursue a substantial and consistent share buyback programme, arguing that the operator is trading at a significant discount to its perceived fair value.

In an open letter dated 6 July, the Juroszek family investment foundations said they hold approximately 1.4% of DigiPlus and have continued to increase their position. The investors described themselves as long-term, sector-focused shareholders and said a renewed repurchase authorisation would be the most value-accretive use of the company’s capital at current market prices.

The group said DigiPlus traded at around 2.4 times the estimated 2026 enterprise value-to-EBITDA and 0.4 times the estimated enterprise value-to-sales. It compared these multiples with a broader listed B2C gaming peer group, claiming DigiPlus was valued below peer medians despite expectations for EBITDA growth of close to 20% in 2027.

Betplay Capital also highlighted DigiPlus’s estimated 2026 free cash flow yield of around 32%, alongside a reported cash balance of more than PHP20bn ($325m) and limited debt. 

It argued that capital expenditure on non-committed land-based projects could be deferred in favour of repurchasing and cancelling shares.

The letter follows a difficult period for DigiPlus. In the first quarter of 2026, revenue fell 25% year-on-year to PHP17.2bn, while net income declined 33% to PHP2.8bn.

The company attributed the softer performance partly to the delinking of e-wallet access from licensed online gaming platforms, which affected activity and transaction flows.

However, revenue was broadly stable compared with the fourth quarter of 2025, and DigiPlus said its balance sheet remained strong. The company has also continued to expand its digital entertainment offering and outlined a new corporate responsibility framework in recent months.

Betplay Capital said the company’s long-term fundamentals remained intact and that a buyback could increase earnings and free cash flow per share while signalling management confidence in the business.

DigiPlus had not publicly responded to the letter at the time of writing.

Good to know

DigiPlus reported PHP20.5bn in cash and cash equivalents at the end of March 2026, against debt of PHP745.8m

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