SportsHero Advances Subscriber Quality and Expands Telco Partnership in Q4 FY26

Subscriber Mix Shift Signals Monetisation Focus

SportsHero Limited (ASX:SHO) closed Q4 FY2026 with a steady stream of subscriber sign-ups, averaging 2,997 daily as of 30 June, nearly unchanged from 3,032 at the end of the previous quarter. However, the real story lies in the quality of these subscribers. Weekly subscriptions, a higher-margin segment, surged to 24.9% of sign-ups from a mere 2% in the prior quarter, reflecting a deliberate optimisation towards more lucrative subscription tiers.

This shift aligns with SportsHero’s strategic pivot to enhance revenue per user, a critical step as the company builds out its digital gaming ecosystem in Southeast Asia. The company’s platform sessions also rose 17.1% quarter-on-quarter to 2.1 million, largely fuelled by the City Battle football campaign, underscoring the power of sports-themed engagement to drive user activity and retention.

City Battle Campaign and Olahbola Pass Drive Engagement

City Battle’s Q4 Football edition, launched in May, proved a robust engine for subscriber acquisition and engagement. May alone saw 86,713 sessions, with return visit rates climbing to 43.7% in the June quarter, up from 28.2% previously. The introduction of upgrade incentives nudged daily pass users toward weekly and monthly plans, supporting the improved subscription mix.

Complementing this was the Olahbola Gaming Pass, launched in May targeting Indonesian football fans. It offers access to 30+ football-specific titles and serves as a funnel to convert casual users into full HeroPlay Premium subscribers, unlocking over 1,000 games across sports and gaming categories. The campaign was extended through to the FIFA World Cup 2026 final to maximise exposure and sign-ups.

Expanded Telco Partnership to Boost Distribution

Post-quarter, SportsHero announced an expanded agreement with XLSMART, Indonesia’s third largest telco, to include full marketing support for HeroPlay. This deal taps into XLSMART’s rapidly growing customer base of 73 million, up 24.1% since 2024, and enables subscription payments via Direct Carrier Billing integrated with phone accounts. Consumers will have flexible subscription options ranging from daily to monthly plans, with first revenue expected in the September quarter.

The XLSMART partnership represents a major commercial opportunity, validating SportsHero’s Southeast Asia telco distribution strategy and positioning the company to scale its reach substantially in the region.

Strategic Appointment to Accelerate Product Evolution

In July, SportsHero appointed Duane Mutu as Gaming & Product Strategy Advisor. Mutu brings extensive experience leading global gaming divisions and esports strategy, including senior roles at Mondia and Dentsu Sports International, and founding a leading esports media company in New Zealand. His expertise is expected to accelerate the evolution of HeroPlay into a comprehensive gaming ecosystem with multiple new revenue streams planned for upcoming quarters.

Financial Position and Operating Cash Flow

Cash receipts for the quarter were $285,000, impacted by a delayed $270,000 payment from the Philippines, which arrived in mid-July. Including this, total receipts would have been approximately $555,000, up from $269,000 in the prior quarter. SportsHero ended June with $3.45 million in cash, rising to around $3.75 million after option exercises and the late receipt.

Operating cash flow remained negative at $611,000, reflecting ongoing investment in marketing, platform costs, and staff. Advertising expenses slightly declined to $189,000 despite steady promotional activity. The company has a $1 million undrawn loan facility in place, providing additional liquidity.