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There are two things to note about SportsHero’s (ASX:SHO) performance on the ASX of late.
The first is, as of around 2.30pm on Wednesday Sydney time, only $6 of shares had traded hands, according to a third party service porting Morningstar data.
The second is the stock is up nearly +130% YoY, albeit, to 2.5cps. Make of that what you will.
On Wednesday, SportsHero confirmed it’s further expanding its Southeast Asian (SEA) footprint by expanding into the Philippines with its ‘Family Game Room’ product, adding onto Indonesian and Thai markets.
That product comes via a partnership with an entity called iGV, short for iGamer Vault (or iGVault), which is billed as a “gaming assets marketplace” effectively offering video games on a software-as-a-service (SaaS) basis.
SportsHero expanded into Indonesia only last month, inking a two-year agreement with a third entity called XL Axiata, Indonesia’s third largest telco. So its foray into SEA is a relatively recent strategic push, explaining why shares jumped in early February.
The company hopes its association with iGV can help its share price run further, and worth noting is the Family Room package includes blockbuster titles such as Counter Strike, Call of Duty, GTA 5, Rust, and other video games which – if you aren’t familiar – are generally considered gold standard.
Especially among young men, which SportsHero is clearly hoping to tap into, given it estimated on Wednesday the Philippines boasts some 119M regular ‘gamers.’
“SHO will work closely with iGV to develop tailored marketing initiatives and partnerships in the Philippines… this expansion is expected to contribute positively to SHO’s growth strategy by leveraging iGV’s innovative product offerings and tapping into one of SEA’s most dynamic digital markets,” SportsHero wrote on Wednesday.
There is one snag there: As for iGV, SportsHero appears to be tagging along for the ride and getting its name out there rather than directly benefitting from any significant revenue opportunity. In fact, the terms could be seen as lacklustre by some.
“There is no revenue split in the agreement covering the Philippines for the iGV Family Game Room product,” SHO elaborated.
“SHO is required to pay to iGV an amount between US$1.00 and US$1.50 per subscriber. The quantum of each subscriber payment reduces on a step basis as subscriber volumes increase. There is no consideration payable between the parties to the agreement.”
SHO last traded at 2.5cps.
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