The SportsHero Ltd (ASX: SHO) share price is on the up today after the company posted its results for the FY21 half-year.
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The SportsHero Ltd (ASX: SHO) share price is on the up today after the company posted its results for the FY21 half-year. Shares are trading 5.41% higher compared to yesterday’s close. At the time of writing, the SportsHero share price is sitting at 3.9 cents per share.
Let’s take a closer look at why its shares are rising today and what was released.
What’s impacting the SportsHero share price?
Despite posting losses for the six-month period ending 31 December 2020, the social competition platform’s shares are rising. Notably, the loss of US$775,000 is lower than the US$916,000 of the prior corresponding period (pcp).
While sales income was still minimal (only US$7,757 compared to nothing in the pcp), expenses were down on the pcp.
A stronger Australian dollar saved the company around US$50,000 and employee expenses were reduced by US$116,000 on the pcp. A US$104,000 saving in net loss of joint venture (accounted for using the equity method) from the pcp was counteracted by a US$160,000 increase in share-based payments compared to the pcp.
In further good news for investors, the earnings per share (EPS) loss dropped from 0.31 cents per share in the pcp to 0.21 cents per share.
No dividend was paid for the FY21 half-year.
Main takeaways from the report
- OlahBola, an app covering international football for the Indonesian market was launched in July 2020.
- Mint Capital Advisors injected $5 million into SportsHero in the form of a financing facility. SportsHero issued 5 million shares to Mint Capital in return.
- OlahBola achieved 1.1 million new unique users by October 2020.
- In November 2020, SportsHero signed a deal with MolaTV, (exclusive rights holders in Indonesia to English Premier League and German Bundesliga football) to stream its content on the OlahBola app. MolaTV pays SportsHero 10% of all MolaTV subscription revenue generated through the app.
- Veritas Securities raised $1.3 million in working capital for the company in November 2020. In February 2021, the company raised a further $1.5 million from First Growth Funds Limited.
SportsHero share price snapshot
SportsHero’s shares are trading higher off the back of today’s announcement. It is also true the SportsHero share price has nearly doubled since this time last year. Back then, shares were selling at 2 cents each.
However, in August 2018 SportsHero shares were selling for as high as 22 cents each. In fact, the current SportsHero share price is 99.5% lower than its all-time high of $7.68. This level was last observed in April 2011.
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*Returns as of February 15th 2021
Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.