AMTD Digital Successfully Completed Its Share Repurchase Program

Rhea-AI Summary

AMTD Digital Inc. (NYSE: HKD) has successfully completed the repurchase of all shares authorized under the US$50 million repurchase program. The board of directors is confident in the company's financial position and future prospects.

Insights

Market Research Analyst

The completion of a US$50 million share repurchase program by AMTD Digital Inc. is a significant move that signals to the market the company's confidence in its intrinsic value. Share repurchases are often perceived positively as they can increase earnings per share and return surplus cash to shareholders. However, the impact on the company's stock price can vary depending on the market's perception of the underlying motive. If the market interprets the buyback as a sign that the company believes its stock is undervalued, this could potentially lead to a short-term increase in stock price.

In assessing the long-term implications, it's essential to consider the company's cash flow position and whether this repurchase might affect its ability to invest in growth opportunities or weather economic downturns. A repurchase of this magnitude could indicate a strong balance sheet, but it might also raise questions about the lack of available investment opportunities that could provide higher returns.

Financial Analyst

From a financial perspective, the repurchase of shares by AMTD Digital Inc. can be seen as a capital allocation decision. The company's choice to use its resources for a stock buyback rather than for other investments or debt reduction should be evaluated in terms of opportunity cost. Investors should consider the company's debt levels, interest coverage ratios and overall financial health. Furthermore, the timing of the buyback could be crucial; repurchasing shares when the market is undervalued can be accretive to shareholder value, whereas buybacks at market peaks might not be as beneficial.

It is also important to review the company's past performance and future earnings projections to understand if the repurchase aligns with its long-term strategic goals. A detailed analysis of the price-to-earnings ratio and other valuation metrics in comparison to industry peers will provide a more comprehensive view of the repurchase's potential impact on shareholder value.

PARIS & NEW YORK--(BUSINESS WIRE)-- AMTD Digital Inc. (“AMTD Digital” or “Company”) (NYSE: HKD), announced today that the Company has successfully completed the repurchase of all of the shares authorised under the US$50 million repurchase program previously announced. The board of directors is fully confident about the long-term sustainable developments of the Company and will be announcing and rolling out additional repurchase programme as the board sees fit and necessary.

Dr. Timothy Tong, Independent Chairman of the Company, commented, “We are committed to achieving long term sustainable values of the American depositary shares of the Company and we are confident that we will continue to build a strong and diverse business platform in the global market.”

About AMTD Digital Inc.

AMTD Digital Inc. (NYSE: HKD) is a comprehensive digital solutions platform headquartered in France. Its one-stop digital solutions platform operates four main business lines including digital solutions services, digital media, content and marketing services, digital investments as well as hospitality and VIP services. It is the fusion reactor at the core of the AMTD SpiderNet ecosystem and empowers and integrates the various digital businesses within its ecosystem. For AMTD Digital’s announcements, please visit https://ir.amtdigital.net/investor-news.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about the beliefs, plans, and expectations of AMTD Digital Inc., are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the filings of AMTD Digital Inc. with the SEC. All information provided in this press release is as of the date of this press release, and AMTD Digital Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240205485321/en/

IR Office

AMTD Digital Inc.

ir@amtdigital.com

Source: AMTD Digital Inc.

FAQ

What is the ticker symbol for AMTD Digital Inc.?

The ticker symbol for AMTD Digital Inc. is HKD.

What was the value of the repurchase program announced by AMTD Digital Inc.?

The repurchase program announced by AMTD Digital Inc. was valued at US$50 million.

Has AMTD Digital Inc. completed the repurchase of all authorized shares?

Yes, AMTD Digital Inc. has successfully completed the repurchase of all authorized shares.

What is the board of directors' stance on the company's financial position and future prospects?

The board of directors is fully confident in AMTD Digital Inc.'s financial position and future prospects.