SportsHero Limited (ASX: SHO) has reported record quarterly cash receipts of A$539,000 for Q2 FY26, the highest since its 2017 ASX listing. The result stems from a A$527,000 milestone payment received following the Philippines platform launch, combined with A$12,000 in direct HeroPlay subscription revenue. This marks a material inflection point for the digital gaming company, with multiple revenue streams now operational across two Southeast Asian markets.
SportsHero Posts Record Cash Receipts as HeroPlay Gains Momentum
The company’s Q2 FY26 performance delivered A$539,000 in total cash receipts, driven by two distinct revenue engines. The Philippines milestone payment of A$527,000 (US$350,000) followed successful integration and launch of the iGV.Com Game Pass product via PLDT Home, the country’s largest fully integrated telco. Direct HeroPlay subscriptions contributed A$12,000 following the platform’s mid-December trial marketing period in Indonesia.
Cash on hand stood at A$500,000 at quarter-end, supported by A$1.1 million in undrawn debt facilities available for marketing acceleration and regional expansion. Net operating cash flow for the quarter was -A$10,000, indicating the company is approaching cash flow neutrality despite being in early-stage revenue ramp-up.
Following a A$162,000 loan repayment in December, the company has strengthened its balance sheet position while maintaining significant capital reserves for growth initiatives.
| Metric | Q2 FY26 | Q1 FY26 | Commentary |
|---|---|---|---|
| Total Cash Receipts | A$539,000 | A$2,000 | Record quarter since 2017 listing |
| Net Operating Cash Flow | -A$10,000 | -A$602,000 | Near break-even despite pre-revenue ramp |
| Cash Position | A$500,000 | A$700,000 | Post loan repayment of A$162,000 |
| Undrawn Facilities | A$1.1M | A$1.3M | Growth capital available for deployment |
This represents the company’s strongest cash generation quarter in eight years, with dual revenue engines now validated across Indonesia and Philippines markets.
What is Driving SportsHero’s HeroPlay Subscriber Growth?
Daily Sign-Ups Triple in One Month
SportsHero’s HeroPlay subscriber growth has accelerated dramatically, with daily sign-ups reaching approximately 880 per day (seven-day average) as of mid-January 2026, up from 280-300 per day in mid-December 2025. The platform achieved a peak single-day record of 1,710 subscribers during this period.
Notably, this growth occurred before Indosat’s full-scale marketing launch, suggesting strong organic demand for the mobile casual gaming subscription service. The company is seeing particularly strong conversion through its direct payment channel, with 89% of subscribers opting for the higher-margin direct payment method using debit/credit cards or e-wallets rather than telco billing.
Management highlighted that HeroPlay was launched in November 2025, meaning the current subscriber data represents approximately six weeks of actively marketed commercial operations, including the December holiday period.
Indosat Marketing Launch Imminent
Indosat has confirmed its full-scale marketing support for HeroPlay is set to commence shortly, targeting approximately 50.9 million monthly active users across its MyIM3 and Bima+ self-service applications. Users can subscribe to HeroPlay with “two clicks” using Direct Carrier Billing (DCB) through their existing Indosat accounts.
Indonesia’s gaming market comprises 148 million active gamers, with the majority playing on mobile devices. This positions HeroPlay to capture material market share through both telco partner channels and its direct payment platform.
“We’re excited by the early growth in HeroPlay subscriber numbers, particularly given we’re only just starting our marketing efforts and Indosat are getting ready to pull the trigger on their scaled up marketing shortly. The majority of Indonesia’s 148 million active gamers play games on their mobiles, so we feel HeroPlay is really well positioned to capture a good chunk of the market through our telco partners and via our direct payment platform,” said Tom Lapping, SportsHero CEO.
HeroPlay is available through two distribution channels:
- Telco Partner Channels – accessing existing customer databases via Direct Carrier Billing through providers such as Indosat
- Direct-to-Consumer Platform – enabling subscriptions via SportsHero’s third-party payment platform using debit/credit cards or e-wallets
Current growth is organic and early-stage. Indosat’s marketing firepower represents a step-change catalyst with potential to drive exponential subscriber acquisition across its massive user base.
Understanding HeroPlay’s Subscription Economics
For retail investors, understanding the margin dynamics between distribution channels is critical to evaluating revenue quality. Direct Carrier Billing (DCB) enables users to pay for digital services through their existing telco account, with the subscription fee added to their monthly phone bill. This provides frictionless payment for consumers but results in lower gross margins for SportsHero due to telco revenue-sharing arrangements.
Monthly Gross Sales Value (GSV) per user ranges from IDR 40,000 (A$3.55) to IDR 75,000 (A$6.65) depending on subscription tier (daily, weekly, or monthly) and distribution channel selected. Gross margins after licensing and platform partner costs are expected to range from approximately 35% through the telco channel to 85% through the direct payment channel.
The current 89% adoption rate for the direct payment channel is materially higher than standard telco-only subscription models, suggesting revenue quality will be substantially better than traditional DCB-dependent services.
| Distribution Channel | GSV per User/Month | Estimated Gross Margin | Current Adoption % |
|---|---|---|---|
| Telco DCB (Indosat) | IDR 40,000 – 75,000 (A$3.55 – A$6.65) |
~35% | 11% |
| Direct Payment Platform | IDR 40,000 – 75,000 (A$3.55 – A$6.65) |
~85% | 89% |
The margin differential between channels is substantial. As the direct channel adoption rate is maintained or grows, revenue quality should remain materially higher than telco-dependent competitors.
How Will Indosat Marketing Impact SportsHero Revenue?
On 14 January 2026, Indosat and SportsHero issued a joint press release confirming the partnership, providing formal market validation for the HeroPlay platform. Bilal Kazmi, Director & Chief Commercial Officer of Indosat Ooredoo Hutchison, stated the collaboration aligns with Indosat’s commitment to delivering simple digital services targeting younger generations.
“Through HeroPlay, we are expanding our digital entertainment ecosystem to reach more customers, supported by Indosat’s AI-powered 5G network, AIvolusi5G, to deliver a smoother and more optimal gaming experience,” said Bilal Kazmi.
The strategic alignment between Indosat’s 5G infrastructure branding (AIvolusi5G) and HeroPlay’s cloud-streaming gaming content positions the partnership as mutually beneficial. Public endorsement from a major telco partner signals commercial confidence and creates reputational momentum for additional partnership opportunities across Southeast Asia.
This represents a material de-risking event for the investment thesis, with HeroPlay now validated by one of Indonesia’s largest telecommunications operators.
What are SportsHero’s Cash Receipts from Philippines?
The company received an initial milestone payment of approximately A$527,000 (US$350,000) in December 2025 following successful integration and launch of the iGV.Com Game Pass product via PLDT Home. The remaining contract value of US$650,000 (~A$982,000) is expected through the March 2026 quarter and beyond, as part of the initial 12-month minimum contract agreement running through September 2026.
Key payment milestones include:
- December 2025: Initial milestone payment of A$527,000 received
- January 2026 onwards: Regular monthly payments commencing
- Through September 2026: Balance of US$650,000 to be received
- Post-September 2026: Potential for contract renewal or expansion
The total initial contract value stands at US$1 million, with potential for ongoing revenue from the original agreement plus increased revenue from expansion or new customer acquisition beyond the initial term.
Philippines revenue provides near-term cash flow visibility while HeroPlay scales in Indonesia, creating a dual revenue engine that de-risks the overall growth trajectory.
Operational Cash Position and Growth Funding
The company’s -A$10,000 net operating cash flow for Q2 FY26 indicates near break-even performance despite being pre-revenue ramp. The A$162,000 loan repayment in December demonstrates balance sheet strengthening, while A$1.1 million in undrawn debt facilities provides a growth war chest for marketing acceleration.
Q2 FY26 expenditure breakdown:
- Staff costs (including related party payments): A$165,000
- Corporate and admin costs: A$107,000
- Professional fees: A$97,000
- Platform manufacturing and operating costs: A$90,000
- Accounting and audit: A$72,000
- Advertising and marketing: A$18,000
The expenditure profile reflects a company approaching cash flow neutrality while maintaining significant dry powder for marketing acceleration, suggesting disciplined capital management during the early commercial phase.
Growth Strategy and Next Catalysts
Multiple near-term milestones provide regular newsflow while the company builds operational metrics for longer-term valuation modelling. Key upcoming catalysts include:
- Imminent Indosat Marketing Launch – targeting 50.9 million monthly active users
- January 2026 Philippines Payment – first regular monthly payment expected
- Q1 FY26 Subscriber Metrics – expanded data set for churn, CAC, ARPU, and LTV analysis
- Grace Clapham Growth Strategy – newly appointed advisor with 35+ markets experience
In November 2025, the company appointed Grace Clapham as Growth Strategy Advisor. Throughout her career, she has partnered with global brands including Meta, LinkedIn, BMW, Nestlé, Aesop, Maybank, Dentsu, Bank of America, Canva, and Hootsuite. She has scaled operations and led go-to-market strategies across 35+ markets, generating revenue through strategic brand and community partnerships.
HeroPlay has been in commercial operation for approximately six weeks as of the report date. The Directors have highlighted that current subscriber numbers represent a small sample set, and it will take time to fully understand long-term metrics relating to subscriber retention, cost of acquisition, average revenue per user, long-term value, and monthly active users.
The combination of organic Indonesian growth, Philippines cash receipts, and imminent large-scale marketing by a major telco partner positions SportsHero at a material inflection point in its commercialisation timeline.
Want More Tech & Digital Media Breakouts?
SportsHero’s record cash receipts and accelerating HeroPlay subscriber growth represent exactly the type of early-stage inflection stories that drive material returns in ASX tech stocks. With Indosat’s marketing launch imminent and Philippines revenue providing near-term cash flow visibility, investors need real-time alerts when operational milestones hit or trading patterns shift.
The Big News Blast delivers FREE breaking news and comprehensive analysis on ASX Tech, Biotech, Healthcare, Finance, and Industrial sectors—trusted by 20,000+ active subscribers who demand more than surface-level headlines. To receive instant alerts on emerging tech plays like SportsHero, along with detailed sector analysis and actionable insights, click the “Free Alerts” button in the menu at StockWire X and join investors who track growth stories before they hit mainstream coverage.