Highlights

  • SportsHero (ASX:SHO) has expanded its agreement with Indonesia’s XLSMART to distribute its HeroPlay mobile casual gaming platform.
  • XLSMART will provide marketing support across its customer base of 73 million subscribers, expanding SportsHero’s potential market reach.
  • HeroPlay users will access more than 1,000 mobile game titles through direct carrier billing subscription options.
  • SportsHero expects HeroPlay revenue generation to begin in the September quarter following platform integration.

SportsHero Limited (ASX:SHO) is advancing its Southeast Asian digital gaming strategy following an expanded partnership agreement with XLSMART, Indonesia’s third-largest telecommunications provider. The company’s shares were trading at A$0.037 on 30 July 2026, up 7.50% during the session, as investors responded to the announcement of broader distribution opportunities for the HeroPlay mobile gaming platform.

The expanded agreement allows XLSMART to offer SportsHero’s HeroPlay product to its customers, adding a second major telecommunications partner for the mobile casual gaming platform. The agreement follows the initial rollout of HeroPlay in Indonesia and represents another step in SportsHero’s strategy of using telecommunications partnerships to distribute digital gaming products across Southeast Asia.

The company said the agreement includes full marketing support from XLSMART, providing additional promotional capability across a rapidly growing customer base.

XLSMART Partnership Expands HeroPlay Distribution Reach

SportsHero’s latest agreement builds on its existing relationship with XLSMART, which previously involved the distribution of the iGV.Com Family Game Pass PC gaming product. That service commenced through XLSMART in April 2025.

Under the expanded arrangement, XLSMART customers will gain access to SportsHero’s catalogue of more than 1,000 mobile game titles through HeroPlay. Customers will be able to subscribe using direct carrier billing, allowing payments to be processed through their existing mobile phone accounts.

The subscription model will offer daily, weekly and monthly options, providing flexibility for users while creating multiple potential revenue channels for SportsHero.

Integration work is expected to commence immediately, with the platform expected to become operational and begin generating revenue during the September quarter.

Indonesia Mobile Gaming Opportunity Supports Growth Strategy

SportsHero is targeting the growing digital entertainment market in Southeast Asia, with Indonesia serving as a key market for the company’s expansion plans.

The partnership with XLSMART provides access to a substantial telecommunications customer base. XLSMART was formed following the merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk and PT Smart Telcom in March 2025.

The company reported a subscriber base of 73 million customers, providing SportsHero with a large potential audience for HeroPlay adoption.

For digital gaming companies, telecommunications partnerships can provide a direct distribution pathway by combining established customer relationships with digital content offerings. This approach can reduce customer acquisition barriers and support broader product awareness.

SportsHero’s strategy is focused on building these distribution relationships and expanding product availability through major regional operators.

HeroPlay Revenue Model and Commercial Potential

SportsHero expects gross margins from the HeroPlay product, after partner share expenses, to range between 32% and 85%. The variation depends on factors including subscription type, customer usage patterns and acquisition channels.

The company’s business model relies on subscription-based access to gaming content, with revenue generated through customer payments processed via telecommunications billing systems.

The addition of XLSMART strengthens the company’s commercial distribution network and provides another channel through which SportsHero can test and scale its gaming platform.

However, revenue growth will depend on user adoption rates, subscription conversions, customer retention and the effectiveness of marketing initiatives supported by telecommunications partners.

Southeast Asian Expansion Strategy Gains Momentum

SportsHero described the XLSMART agreement as further validation of its broader Southeast Asian rollout strategy.

The company has been developing what it refers to as a “land and expand” model, where initial partnerships with telecommunications companies can be expanded by introducing additional products over time.

The relationship with XLSMART demonstrates this approach, with the partnership beginning through the iGV.Com PC gaming platform before expanding to include HeroPlay.

Management believes each additional telecommunications agreement strengthens its ability to build sales and marketing channels across Southeast Asia.

The company is continuing discussions with potential regional partners as it seeks to expand the availability of its gaming products.

Digital Gaming Market and Competitive Position

The mobile gaming sector continues to evolve as consumers increasingly access entertainment content through smartphones. Subscription-based gaming platforms are competing for user engagement by offering broader content libraries and convenient payment options.

SportsHero’s focus on telecommunications partnerships differentiates its approach by leveraging existing mobile networks and customer ecosystems.

The company’s catalogue-based model, featuring more than 1,000 mobile game titles, aims to provide users with a broad range of casual gaming options rather than relying on individual game releases.

The ability to successfully scale this model will depend on maintaining attractive content offerings, securing additional distribution agreements and converting customer reach into recurring revenue.

Investor Focus on Revenue Growth and Regional Expansion

Following the XLSMART announcement, investors are likely to monitor the commercial rollout of HeroPlay and the timing of initial revenue contribution.

Key areas of interest include subscriber uptake, customer engagement levels, revenue generation from the new distribution channel and the company’s ability to replicate the model across other Southeast Asian telecommunications operators.

The expanded XLSMART partnership provides SportsHero with additional market access, but execution will remain important as the company transitions from partnership agreements into measurable commercial outcomes.

SportsHero Outlook for Investors

SportsHero’s latest announcement represents continued progress in its strategy to build a digital gaming ecosystem across Southeast Asia. The expanded XLSMART agreement increases HeroPlay’s distribution potential and strengthens the company’s relationship with a major Indonesian telecommunications operator.

The company is now focused on platform integration, customer acquisition and revenue generation from the expanded channel. Future updates on user adoption, additional partnerships and commercial performance will provide further insight into the scalability of SportsHero’s gaming strategy.

Conclusion

SportsHero’s expanded agreement with XLSMART marks another step in its Southeast Asian gaming rollout, providing HeroPlay with access to a large Indonesian telecommunications customer base and additional marketing support. While the partnership creates a broader distribution opportunity, the company’s future performance will depend on customer adoption, subscription growth and successful execution of its regional expansion strategy.