SportsHero Limited Commences Revenue Generation and Provides Business Update
SHO (SHO) Share Update July 2024 Tuesday 16th
SportsHero Limited Announces Revenue Generation and Business Update
SportsHero Limited (ASX: SHO) has announced the commencement of revenue generation through digital assets on the KitaGaruda app, alongside a comprehensive business update.
Instant Summary:
- Whisper Media has started selling digital assets on KitaGaruda, generating initial advertising revenues.
- PSSI and SHO confirm IDR 7.4 billion (approximately AUD 717,000) in advertising contracts.
- Nett digital revenue to SHO to date is IDR 991,000,000 (approximately AUD 90,000).
- Advertisers this quarter include Djarum, McDonalds, Mitsubishi, Pepsodent, SOHO, Tango, and Aqua.
- PSSI has renewed major sponsorships with key brand partners including Bank Mandiri and AQUA.
- The KitaGaruda app is included in major sponsorship renewal contracts.
- PSSI’s National Football Team advances to Round 3 of World Cup Qualifiers, a historical first for Indonesia.
Revenue Generation and Advertising Contracts
SportsHero Limited (ASX: SHO) has announced that Whisper Media has commenced selling all digital assets on the KitaGaruda app, generating the first advertising revenues for both PSSI and SHO in June 2024. The companies have confirmed IDR 7.4 billion (approximately AUD 717,000) in advertising contracts in Indonesia with the Football Federation of Indonesia (PSSI).
To date, the net digital revenue to SHO is IDR 991,000,000 (approximately AUD 90,000). Advertisers this quarter include prominent brands such as Djarum, McDonalds, Mitsubishi, Pepsodent, SOHO, Tango, and Aqua.
Major Sponsorship Renewals
PSSI has successfully renewed its seven major sponsors for another 12 months. Key sponsors include Bank Mandiri, AQUA, IndoSat, IndoMilk, Freeport, Sinarmas, and AstraFinance. These renewals include digital branding inventory on the KitaGaruda app, developed and maintained by SportsHero.
The KitaGaruda app is the official app for Indonesian football, covering the latest news across the National Team, Liga 1, Liga 2, and Liga 3, video game highlights, match fixtures and results, team interviews, sale of match tickets, and team merchandise.
Future Plans and Sponsorship Revenue
PSSI intends to use the KitaGaruda app to stream live and recorded matches to their estimated 80 million-plus fan base in Indonesia, expanding the potential advertising revenue base through a wider audience and extended app user engagement time. Users will also be offered the right to subscribe to exclusive access to premium content, such as international match video highlights, live streaming of games, and featured video stories and education.
Whisper Media has committed to maximizing sales over the next 6 to 12 months as app traffic has increased substantially with the National Team’s recent performance and progress to the next round of the football World Cup Qualifiers. SHO will advise on their sponsorship revenue share under the 70% PSSI/30% SHO partnership split as soon as revenue allocation has been determined, with the company expecting receipt of the revenue in the current quarter.
National Team Achievements
PSSI’s National Football Team has advanced to Round 3 of the World Cup Qualifiers, a historical first for Indonesia, with games commencing in September 2024 and hosted in Indonesia. This milestone follows other significant achievements under the leadership of PSSI Chairman Erick Thohir, including reaching the round of 16 in the Asian Cup for the first time and winning gold at the 2023 SEA Games in Cambodia.
Thohir’s background in international sports management, including his former ownership of Inter Milan Football Club and membership in the International Olympic Committee, has brought valuable global perspective to Indonesian football.
The commencement of revenue generation through digital assets on the KitaGaruda app is a positive development for SportsHero Limited. This new revenue stream, combined with the renewal of major sponsorships, positions the company well for future growth. The increased app traffic and engagement, driven by the National Team’s success, are likely to enhance advertising revenue potential.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the potential for increased revenue and market expansion. The successful renewal of major sponsorships and the historical achievements of the National Team have bolstered investor confidence in the company's growth prospects.
Conclusion:
SportsHero Limited's recent developments mark a significant step forward in its business strategy. Investors should monitor the company's progress in maximizing digital advertising revenue and leveraging the success of the National Team to drive further growth. Staying informed on these updates will be crucial for making informed investment decisions.