SportsHero Scales HeroPlay Subscribers and ARPU in 3QFY26, Secures $4.3m Placement

HeroPlay Subscriber Growth Accelerates in Indonesia

SportsHero Limited (ASX:SHO) marked its first full quarter of HeroPlay operations in Indonesia with a sharp ramp-up in subscriber numbers, reaching a daily average of 3,032 new paid sign-ups by the end of March 2026. This surge followed a joint marketing campaign with Indonesian telco Indosat, which included a Ramadan-focused “City Battle” gaming competition and leveraged over 140 influencers to build community engagement. The campaign’s impact was underscored by Indosat sending approximately 42 million in-app notifications, achieving a click-through rate 2.5 times above their platform average.

Alongside Indosat’s efforts, SportsHero’s direct digital campaigns generated 4.7 million ad impressions across Indonesia, contributing to consistent subscriber growth that has carried into April as the company prepares for a new City Battle campaign ahead of the FIFA World Cup 2026. The strong telco partnership is proving critical, with the Indosat channel delivering higher average revenue per user (ARPU) and better returns than direct marketing alone, validating the company’s strategy to embed HeroPlay within regional telco ecosystems.

ARPU Growth Reflects Deepening Engagement

ARPU on the Indosat channel more than doubled between January and April 2026, despite no changes to subscription pricing. This uplift coincided with improved engagement metrics: the platform’s returning visit rate stood at 28.2% for the quarter, indicating that nearly one in four visits came from repeat users, a figure comfortably within the 20-35% target range for subscription platforms. Additionally, weekly active user to monthly active user stickiness rose from 20% pre-City Battle launch to 31.7% by the end of March, signaling growing user loyalty and repeat usage.

SportsHero’s CEO Tom Lapping noted, "It’s early days but the positive trends in subscriber growth and ARPU, combined with strong support from Indosat, make this one of the most exciting quarters in our history. We’re optimistic about expanding across Southeast Asia and scaling our business." The company’s mature ARPU target remains $5.30 per month, based on 30 days of paid use, with current initiatives aimed at optimizing subscriber mix and driving upgrades to higher-tier subscriptions.

Expanding Content and Product Features Ahead of FIFA World Cup

SportsHero is preparing for a significant product and marketing push in 4QFY26, which includes expanding HeroPlay’s game library from over 600 to more than 1,000 titles through a deal with Playades, adding popular mobile games including football-themed titles. This content expansion aligns with the upcoming Football City Battle campaign, designed to leverage the FIFA World Cup buzz and SportsHero’s OlahBola brand, which boasts 2.3 million followers. The football subscription product aims to attract a broader audience beyond casual gamers, with zero acquisition cost expected due to marketing synergies.

Further planned features include enhanced gamification modules with player levels, daily login streaks, missions, leaderboards, and renewal-linked rewards. These initiatives are intended to boost engagement frequency, improve retention, and encourage migration to weekly and monthly subscription tiers with targeted upgrade bonuses.

Financial Position Strengthened by Capital Raise and Debt Repayment

On the financial front, SportsHero reported operating cash receipts of approximately A$269,000 for 3QFY26, excluding payments from Indosat, which are expected to commence in the June quarter. Operating cash flow was negative A$565,000, reflecting increased marketing spend and platform costs during this growth phase. The company ended the quarter with cash at bank of A$3.96 million, bolstered by proceeds of $578,000 from option exercises.

Importantly, SportsHero secured firm commitments for a $4.3 million private placement at $0.075 per share in February, with CEO Tom Lapping committing $300,000 subject to shareholder approval, which was granted in April. This capital injection supports ongoing marketing and regional expansion efforts. The company has also fully repaid its debt facilities as of the report date, now holding an undrawn $1 million facility for future flexibility.

These financial moves build on prior capital raises and milestone payments, including the recent expansion of HeroPlay’s game catalogue ahead of the FIFA World Cup, which was detailed in the company’s earlier content deal with Playades and the $4.3M private placement that underpinned SportsHero’s Southeast Asia rollout.

Looking Ahead to 4QFY26 and Beyond

As SportsHero transitions from its testing and validation phase into a continuous campaigning model, the company is poised to capitalize on its growing subscriber base and engagement metrics. The upcoming City Battle campaign, aligned with the FIFA World Cup, will be a critical test of the company’s ability to convert users into higher-value subscriptions and scale revenue per user. Management anticipates that 4QFY26 will deliver significant growth in higher-tier subscriptions, expanded telco partnerships, and a clearer path toward profitability.

The company’s strategic emphasis on telco integration, gamification, and content expansion positions it well within the rapidly evolving Southeast Asian digital gaming market. However, as with any early-stage subscription platform, uncertainties remain around long-term subscriber retention, churn rates, and lifetime value, metrics that will become clearer in coming quarters.