Second telco expansion puts HeroPlay in front of 73 million Indonesian users
SportsHero has expanded its existing agreement with XLSMART (previously XL Axiata), Indonesia’s third largest telco, to include the HeroPlay mobile casual gaming product. The deepened partnership brings full marketing support from XLSMART, targeting a fast-growing customer base of 73.0 million, up 24.1% from 58.8 million in 2024.
Integration work commences immediately, with first revenue expected to flow in the September quarter 2026. This is an expansion of a relationship that began over 12 months ago, not a new telco partnership. SportsHero has been partnered with XLSMART on the iGV.Com PC gaming platform since April 2025.
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What the expanded XLSMART agreement delivers
The agreement gives XLSMART customers the ability to subscribe to SportsHero’s full mobile gaming catalogue, billed directly through their existing phone accounts. HeroPlay itself launched in Indonesia in the December quarter 2025 (November 2025) via the country’s second largest telco, and this expansion adds a second major distribution channel.
Key commercial mechanics include:
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Access to the full SportsHero catalogue of over 1,000 mobile game titles
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Billing via Direct Carrier Billing (DCB) using existing phone accounts
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Subscription flexibility across daily, weekly or monthly options
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Integration commencing immediately, with the platform expected live and first revenue flowing in the September quarter 2026
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HeroPlay revenue additional to the existing iGV.Com Family Game Pass PC gaming revenue, live via XLSMART since April 2025
The table below summarises what the expanded agreement means for investors.
| Feature | Detail | Investor Impact |
|---|---|---|
| Reach | 73.0 million customer base (up 24.1% from 2024) | Materially larger addressable audience for the mobile gaming product |
| New revenue stream | HeroPlay distributed via Direct Carrier Billing (DCB) | Additional recurring revenue layered onto existing iGV.Com sales |
| Marketing support | Full marketing support from XLSMART | Expands marketing support for the product category. |
| First revenue timing | September quarter 2026 | Near-term catalyst with a defined revenue window |
| Margin guidance | 32%–85% gross margin (management expectation) | Profitability dependent on subscription mix and usage |
Understanding Direct Carrier Billing and the “land and expand” model
Direct Carrier Billing (DCB) allows consumers to subscribe to a service using their existing phone account, with charges applied directly to their mobile bill or prepaid balance.
The “land and expand model” describes a commercial strategy where a company secures a telco partner on one product first, then grows the offering as the relationship develops. SportsHero landed with XLSMART through its iGV.Com PC gaming platform in April 2025, and has now expanded into HeroPlay mobile gaming roughly 15 months later.
Why this matters for the SE Asian rollout thesis
XLSMART is SportsHero’s second major telco partner for HeroPlay. Management believes this validates the mobile gaming playbook being rolled out across South East Asia, and supports the strategy to secure other major telcos in the region.
HeroPlay sign-up momentum heading into this agreement was already accelerating, with daily sign-ups tripling to 880 before Indosat completed its full marketing launch across its 50.9 million user base.
Management expects gross margin from the HeroPlay product, after all partner share expenses are paid, to be in the range of 32% and 85%. This range is guidance rather than a guaranteed outcome, and depends on the mix of daily, weekly or monthly subscriptions, customer usage and sign-up channel.
XLSMART’s scale provides useful context for the opportunity. According to the telco’s 2025 Annual Report, it holds a subscriber base of 73.0 million customers, annual revenue of IDR 42.5 trillion (~A$4.3bn) and EBITDA of IDR 17.8 trillion (~A$1.9bn). Its network spans 475 cities across 6 regions.
CEO Commentary
“This expansion is a pivotal milestone, driven by the early commercial success of HeroPlay in Indonesia and our deepening partnership with XLSMART. This execution aligns perfectly with our long-term strategic playbook, and we look forward to accelerating this rollout with additional regional partners in the future,” said Tom Lapping, Chief Executive Officer of SportsHero.
What comes next
The agreement sets out a clear near-term pathway. Management’s stated next steps are as follows:
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Integration work commences immediately.
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The platform is expected to be live with first revenue flowing in the September quarter 2026.
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Management continues to pursue further telco deals across the South East Asian region.
The capital raised to fund regional expansion in February 2026 was explicitly directed at securing further telco partnerships, with the CEO personally committing $300,000 to the placement as a signal of pipeline confidence.
SportsHero has indicated that each new agreement is expected to strengthen its sales and marketing efforts both regionally and more broadly.
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