Analysts: DigiPlus’ Brazil delay unlikely to affect long-term outlook

DIGIPLUS INTERACTIVE CORP’S decision to pause the soft launch of its Brazilian gaming platform GamePlus may unsettle investors in the short term but reflects a pragmatic move to recalibrate its international strategy for stronger long-term growth, according to analysts.

- 

“While the delay might raise short-term concerns among investors about the pace of international expansion, the focus on cultural adaptation and better product-market fit could ultimately strengthen confidence in the company’s strategy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the move demonstrates management’s flexibility and pragmatism.

“The initial foray is always the most challenging, and in this case, the company quickly realized they had to change direction,” he said. “We have to give them credit for being pragmatic and decisive. The pause will allow them to revisit their assumptions, recalibrate their strategy, and localize their offerings to better suit Brazilian customers.”