DIGIPLUS Interactive Corp.’s board has approved a share buyback program worth up to P6 billion following a recent decline in the company’s share price.

The share buyback program will be valid for a 12-month period and may be renewed, subject to board approval, the Tanco-led digital entertainment provider said in a disclosure on Monday.

DigiPlus said the share buyback program “underscores the company’s strong balance sheet and commitment to maximizing long-term shareholder value.”

It will be funded through the company’s internally generated cash flows.

“The share repurchase program demonstrates our firm confidence in DigiPlus’ long-term growth and solid fundamentals,” DigiPlus Chairman Eusebio H. Tanco said.

“By strategically deploying our capital through this buyback, we are sending a clear signal that DigiPlus is committed to delivering sustainable returns to shareholders while remaining well-positioned to pursue expansion and innovation,” he added.

On Monday, DigiPlus shares rose by 14.58% or P4.30 to P33.80 apiece, following the share buyback announcement.

This was an improvement from Friday, when DigiPlus shares fell by 23.87% or P9.25 to P29.50 apiece.

DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said in a Viber message that DigiPlus announced the share buyback following a decline in its share price, which came amid the filing of proposed legislation targeting online gambling.

“The move offered some relief to investors, with shares rebounding today. However, the buyback appears modest relative to the recent extraordinarily high trading activity. DigiPlus has been seeing P2 billion in daily value traded, meaning the program may only cover three trading days’ worth of value traded,” he said.

“Whether this helps ease selling pressure and stabilize volumes remains to be seen in the short term,” he added.

“Like any other buyback, this sends a signal to investors that the company is willing to step in and support the share price,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

Lawmakers have recently filed bills in both chambers of Congress seeking to restrict or ban online gaming platforms, prohibit electronic wallet platforms from promoting gambling apps, raise the legal gambling age, and increase the minimum cash-in requirement.

Malacañang said on Monday that President Ferdinand R. Marcos, Jr. supports measures aimed at curbing online gambling addiction among Filipinos.

Last week, the Department of Finance said it is considering the introduction of an online gaming tax and is also reviewing policy options to limit unrestricted access to digital gambling platforms.

DigiPlus operates the sports betting platform ArenaPlus, the digital bingo platform BingoPlus, and the online gaming platform GameZone. — Revin Mikhael D. Ochave