DigiPlus, which operates the popular BingoPlus and ArenaPlus sports betting platforms, is trading just below its all-time high of P21.10 per share.
It finished Thursday’s session with a gain of 4.23 percent to P20.95, valuing the company at P92.34 billion.
This was ahead of tycoon Enrique Razon Jr.’s Bloomberry Resorts, operator of Solaire casino and hotels, which finished Thursday with a market valuation of P88.2 billion. Alliance Global, Andrew Tan’s conglomerate which runs the Newport World Resorts casino, was last valued at P79.3 billion.
Big picture
DigiPlus, chaired by ports and schools tycoon Eusebio Tanco and led by president Tsui Kin Ming, has added about P86.5 billion in market value since early 2022, when it received a Philippine Amusement and Gaming Corp. license to offer online bingo games.
The company is lodging gains as it is set to join the globally recognized MSCI Small Cap Index on Aug. 30, making it more visible to investors.
Analyst view
The meteoric rise of DigiPlus, which trades under the stock symbol “PLUS”, has prompted some analysts to upgrade their targets.
Richard Laneda, senior research manager at COL Financial Group, said the company’s performance in the first justified a target price upgrade to P23.25 per share.
DigiPlus said profits surged 377 percent to P5.2 billion during the first half of 2024, while Bloomberry earned P4 billion, down 38 percent during the same period last year.
Pagcor cuts taxes for e-games
Laneda made the call in an Aug. 12 report, when the company was trading at around P17 per share.
Another headwind for DigiPlus is the further lowering of taxes on electronic games, which will take effect on January next year.
“We believe the premium to [Bloomberry’s] valuation is warranted given the rapid growth of PLUS, a more stable income given the absence high-rollers that tend to make revenue and income volatile, lower capex requirements, and higher [return on equity] of PLUS,” Laneda said.
Bloomberry ready to compete
While integrated resorts rebuild their VIP segments, Bloomberry is not backing down from raising the game online.
“We have some offerings and will catch up soon,” a Bloomberry insider told InsiderPH.
What’s next?
DigiPlus is looking to seize opportunities in Brazil, which recently legalized gambling activities.
It applied for a federal license in Brazil to operate land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities with a decision expected in November this year.
The company is betting on Brazil’s rapidly growing gaming market, driven by a population of over 200 million with 87 percent internet penetration.
“Currently in its preliminary stages, DigiPlus is looking to diversify its portfolio into new markets with enabling regulatory environment for iGaming. DigiPlus envisions the Philippines to remain its core market,” the company said in a stock exchange filing.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
