DigiPlus confirms capex spend on Brazil expansion

DigiPlus [PLUS 35.40, down 0.3%] [link] confirmed that it plans to spend P2.5 to P3.0 billion on “ maintenance capital expenditures in the Philippines and to fund the investment in Brazil in the short-term”. PLUS noted that this allocation does not include funds that could be used for “potential new investments.” PLUS is one of the PSE’s rising stars, up 32% over the past month and up nearly 350% over the past year.

MB bottom-line: I wish PLUS was more specific about the amount they’ve allocated to the Brazil expansion, instead of fuzzing it with “maintenance capital expenditures”. I’m pleased to see PLUS looking to spend significantly on this expansion (and looking to take on a Brazil-based partner) because these digital platforms live and die on marketing which is neither cheap nor universal across cultures. We are super close to Singapore, but commercials aimed at Singaporeans always feel “off” and my brain naturally tunes them out. Localization is important.

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