SportsHero Limited has inked a pivotal two-year distribution agreement with PLDT Inc in the Philippines, raised $1.65 million through a private placement, and broadened its mobile gaming footprint across Southeast Asia with new content partnerships.
- Two-year iGV Family Game Pass distribution deal with PLDT in the Philippines
- Private placement raised A$1.65 million at a discounted share price
- Expanded mobile gaming content distribution with Yes2Games and V-Hunt across four Southeast Asian countries
- Strengthened partnership with Indosat to include mobile casual gaming products
- iGV Game Pass went live post-quarter, with material cashflow expected in December
Strategic Partnership with PLDT
SportsHero Limited has taken a significant step forward by signing a two-year agreement with PLDT Inc, the Philippines' largest telecommunications provider. This deal grants SportsHero the rights to distribute its iGV Family Game Pass product to PLDT’s premium home broadband customers, incorporating direct carrier billing and ongoing marketing support. The agreement includes a guaranteed minimum revenue for the first 12 months, signaling a strong confidence in the product’s market potential within a country boasting an estimated 43 million PC gamers and a rapidly growing esports market.
Capital Raise to Fuel Growth
In August, SportsHero successfully raised A$1.65 million through a private placement at $0.023 per share, representing an 18% discount to the last closing price. The placement included options exercisable at $0.03, potentially raising an additional $1.08 million if fully subscribed. The company plans to deploy these funds to reduce existing debt, expand sales and marketing efforts, and support working capital, underpinning its aggressive growth strategy in the competitive gaming sector.
Expanding Mobile Gaming Footprint Across Southeast Asia
SportsHero has broadened its content distribution network by securing exclusive rights to distribute a portfolio of popular mobile games from Singapore-based Yes2Games, including globally recognized titles from Halfbrick Studios such as Fruit Ninja and Jetpack Joyride. This agreement spans Indonesia, the Philippines, Thailand, and Malaysia, significantly enlarging SportsHero’s addressable market. Additionally, a post-quarter agreement with V-Hunt Digital Media adds approximately 600 hyper casual HTML5 games to SportsHero’s catalogue, enhancing its competitive offering in the region.
Strengthening Existing Partnerships
SportsHero has also expanded its partnership with Indosat Ooredoo Hutchison in Indonesia to include mobile casual gaming products alongside its existing PC-based offerings. This integration, expected to launch in the December quarter, will allow Indosat’s extensive customer base to subscribe to SportsHero’s mobile games via direct carrier billing, providing a seamless user experience and new revenue streams.
Operational and Financial Overview
The iGV Game Pass product officially went live with PLDT in late October, post-quarter, positioning SportsHero to receive material cashflow in the upcoming December quarter. Despite operating cash outflows of $600,000 during the September quarter, the company ended with $700,000 in cash and an undrawn debt facility of $950,000, providing a buffer to support ongoing operations and growth initiatives. Payments to related parties totaled $172,000, reflecting standard executive and director remuneration.
Bottom Line?
With its PLDT launch underway and expanded regional partnerships, SportsHero is poised for growth; but execution and market adoption will be critical in the coming quarters.
Questions in the middle?
- How quickly will PLDT’s customer base adopt the iGV Family Game Pass subscription?
- What is the timeline and expected revenue impact from the new mobile gaming content rollouts across Southeast Asia?
- Will the company pursue further capital raises to support its expansion, and how might this affect shareholder value?