DigiPlus shares plunge 29.96%, worst single-day drop

Shares of DigiPlus Interactive Corp., a leading online entertainment platform, plummeted 29.96 percent on Thursday, marking its worst single-day performance and bringing the company's stock down to P19.54.

The company's shares have now fallen by 70 percent from their 52-week high of P65.3 set on June 11, before lawmakers began supporting a ban on online gambling.

Alfred Benjamin Garcia, research head at AP Securities Inc., attributed the decline to increasing pressure for stricter regulations in the online gambling sector, noting that DigiPlus' share price has fallen by 57.3 percent from its peak.

Japhet Tantiangco of Philstocks Financial Inc. reiterated that current policy narratives against online gaming pose significant barriers to customer entry and would limit revenue generation for firms like DigiPlus.

Despite launching a P6-billion share buyback program in hopes of stabilizing its stock price, DigiPlus' domestic operations may be significantly impacted if strict regulations are signed into law.

The company currently operates several platforms including BingoPlus, ArenaPlus, and Color Game, with Brazil set to launch as a potential buffer against the proposed ban.