SportsHero Limited has broadened its partnership with XLSMART, Indonesia’s third largest telco, to include full marketing support for its HeroPlay mobile gaming platform, targeting a subscriber base of 73 million and kicking off revenue in the September quarter.
- Expanded HeroPlay deal with XLSMART includes full marketing support
- Access to 73 million Indonesian subscribers via Direct Carrier Billing
- Subscription options include daily, weekly, and monthly plans
- Gross margin expected between 32% and 85% depending on subscription mix
- Rollout validates Southeast Asia telco partnership strategy
Second Major Telco Boosts HeroPlay Reach in Indonesia
SportsHero Limited (ASX:SHO) has taken a significant step in scaling its HeroPlay mobile casual gaming platform by expanding its agreement with XLSMART, Indonesia’s third largest telecommunications provider. The deal now includes full marketing support for HeroPlay, which launched late last year, opening access to XLSMART’s rapidly growing customer base of 73 million subscribers, a 24% increase from 2024.
Integration work is set to begin immediately, with SportsHero expecting the first revenue from this new channel in the September quarter. XLSMART customers will be able to subscribe to SportsHero’s catalogue of over 1,000 mobile game titles through Direct Carrier Billing (DCB), allowing charges to be conveniently added to their phone accounts. Subscription options will be flexible, with daily, weekly, and monthly plans available.
Financial Upside Hinges on Subscription Mix
SportsHero forecasts gross margins on the HeroPlay product ranging widely from 32% to 85%, influenced by the blend of subscription durations, customer engagement, and sign-up channels. This variability highlights the early-stage nature of the rollout and the importance of subscriber behaviour in driving profitability. The new revenue stream will complement existing income from the iGV.Com Family Game Pass PC gaming product, which has been distributed via XLSMART since April 2025.
Validation of Southeast Asia Rollout Strategy
The expanded deal with XLSMART exemplifies SportsHero’s “land and expand” approach in Southeast Asia, initially securing telco partnerships with one product before broadening the offering. Having partnered with XLSMART on the iGV.Com platform for over a year, SportsHero’s management sees this as a strong endorsement of their playbook and a foundation for pursuing further telco agreements across the region.
CEO Tom Lapping described the move as a “pivotal milestone” driven by HeroPlay’s early commercial success in Indonesia and the deepening partnership with XLSMART. He anticipates accelerating the rollout with additional regional partners, signalling ongoing momentum for SportsHero’s strategy.
XLSMART’s Market Position and Reach
Formed in March 2025 through the merger of XL Axiata, Smartfren Telecom, and Smart Telcom, XLSMART reported annual revenue of approximately A$4.3 billion and an EBITDA of A$1.9 billion in its 2025 Annual Report. Its network spans 21,000 villages and over 5,000 sub-districts across Indonesia’s six regions, providing a substantial platform for SportsHero’s mobile gaming ambitions.
Bottom Line?
The XLSMART expansion marks a critical juncture for SportsHero’s Southeast Asia ambitions, but the wide margin range underscores the need to monitor subscriber uptake and revenue quality as the rollout unfolds.
Questions in the middle?
- How will the mix of daily, weekly, and monthly subscriptions evolve with XLSMART’s customer base?
- Can SportsHero replicate this expanded telco partnership model across other Southeast Asian markets?
- What early revenue and margin trends will emerge from the HeroPlay rollout in the September quarter?