SportsHero Limited (ASX: SHO), a company focused on gaming and fan engagement, has announced an expansion of its existing agreement with Indosat Ooredoo Hutchison (Indosat), Indonesia’s second-largest telco. The expanded agreement will now include SportsHero’s mobile casual gaming product, in addition to the previously launched iGV.Com Family Game Pass PC gaming product. This new offering is slated to be integrated and available to Indosat customers early in the December quarter.
Under the terms of the expanded agreement, Indosat will provide its substantial customer base with the option to subscribe to a variety of mobile game titles, leveraging their existing mobile phone accounts with a Direct Carrier Billing (DCB) option. Indosat boasts approximately 98.8 million total customer accounts and an average of 50.9 million monthly active users on its self-service apps, MyIM3 and Bima+, which will provide considerable marketing support for the expanded product offering.
The gross subscription value (GSV) per customer is projected to range between IDR50,000 (~A$4.75) and IDR105,000 (~A$9.75) per month, contingent on the specific service offerings chosen by each end-user. The revenue split will see Indosat receiving 35% and SportsHero taking 65% of the GSV. SportsHero anticipates a gross margin in the range of approximately 35% to 65% after accounting for platform partner costs, subject to usage volumes.
Tom Lapping, SportsHero’s CEO, highlighted the significance of the agreement, stating that the addition of the mobile gaming product enables the company to target a much larger customer base, given the substantial number of mobile gamers in Indonesia compared to PC gamers. The South East Asian mobile gaming market is significant with an estimated 286 million mobile gamers, representing approximately 66.2% of the total 432 million gamers in the region. All other terms of the original agreement remain unchanged.
