SportsHero Ltd’s [ASX:SHO] share price fell further upon opening this morning, despite announcing a new partnership with e-pay.
The social media company, formerly known as Nevada Iron Ltd, is focused on the development of the real-time fantasy sports app and social prediction platform ‘SportsHero’. With the aim ‘to build the world’s largest social community dedicated to sports’.
At time of writing, shares in the company are trading at 14 cents, down 6.67% prior to the trading halt announced on Tuesday 23, October.
SportsHero’s partnership with major Malaysian payment enabler
This morning’s announcement revealed that SportsHero signed an agreement to partner with Malaysia’s leading retail payment network ‘e-pay’.
The electronic payment network is Malaysia’s largest retail network, with 19 years’ experience providing mobile pre-paid top up and bill payment services. Servicing 20 million payment transactions nationwide each month.
E-pay will integrate with SportsHero’s Malaysian app for the sale of tickets to e-pay users wanting to participate in SportsHero’s local competitions. Which will allow SportsHero to replicate its successful revenue generator launched in Indonesia earlier this year, but to a wealthier and higher spending market.
The strategic partnership allows SportsHero to reach millions of consumers in Malaysia, a country in which 65% of people are interested in football, which is expected to boost the company’s community of users.
SportsHero Chief Executive Officer Tom Lapping said that the company has had sights set on Malaysia for a while now, and that finding the right partner in the market was key to their strategy.
‘E-pay has a huge profile in the ASEAN region and will enable us to quickly grow our user base via the e-pay brand, which is used by millions of customers each day.’
How much potential does Sportshero have?
Despite today’s decline, investors seem to be willing to take the risk with SportsHero, with the fantasy app’s share price increasing more than 122% in the past 12 months.
With the size of the Malaysian football market, this partnership with e-pay proves to show huge potential for SportsHero. Whether the company can almost triple its share price again in the next 12 months, only time will tell.
For Money Morning
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