The company, formerly Leisure and Resorts World Corp., said its wholly-owned subsidiary, DigiPlus Brazil Interactive, has fulfilled all post-qualification requirements, including the P660 million in license fee payments needed to secure a federal gaming license in Brazil.
This allows the operator of platforms such as BingoPlus and ArenaPlus to operate land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities in the largest country in South America.
“We expect to receive the final list of operators authorized to operate from January 1, 2025, before the end of the year,” DigiPlus said in a stock exchange filing on Friday.
Big picture
Brazil, home to over 200 million, could help DigiPlus sustain its growth momentum after company chair Eusebio Tanco warned growth would moderate following a nine-month profit surge of 314 percent to P8.75 billion this year.
The news caused DigiPlus’ (PLUS) share price to jump as much as 4.2 percent to P27.40 each, valuing the company at almost P120.8 billion. It pulled back to P27.15 per share before the noontime break.
Its present valuation is more than double the market capitalization of tycoon Enrique Razon Jr.’s Bloomberry Resorts, the largest operator of integrated casinos in the country.
Analysts’ view
Alfred Benjamin R. Garcia, head of research at AP Securities, said this was welcome news for DigiPlus.
“It’s a great opportunity for PLUS. Brazil is a huge gaming market, and although the online sports betting space over there is already a crowded field, there’s still a lot of market share to be grabbed,” he said in a text message.
He added that the company has a consensus target price of P28.37 per share among stockbrokerage houses, following recent upgrades from various investment firms.
1,700% rally
DigiPlus shares have soared over 1,700 percent since receiving its online bingo license in early 2022. The company’s share price has grown almost 240 percent in 2024, alongside the significant spike in earnings.
Leadership
Tanco is a business tycoon who owns Asia Terminals Inc. and STI Education Systems, which operates the STI private school chain.
The company’s president, Tsui Kin Ming, previously served as the chief financial officer of Meg-Star International in Macau, the former CFO of Jimei Group Limited, listed on the Hong Kong Stock Exchange, and the former chief accounting officer of Entertainment Gaming Asia in Hong Kong.
Also on its board of directors is gaming tycoon Willy Ocier, the chair of Belle Corp. and Premium Leisure Corp., which partnered with Macau’s Melco Group to develop the City of Dreams Manila in the Entertainment City complex.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
