Award-winning British video game developerhas announced a new joint development agreement with NetEase, Inc., a leading Chinese internet and online game services provider. Through this partnership, the companies aim to develop and release a new game for the global market.
As per the agreement’s terms, NetEase will provide an internal mobile development team for the game, managing all operational and publishing activities globally.
Chief Executive of Codemasters Frank Sagnier identified this arrangement as a main asset of the partnership, commenting “Global mobile expansion is a key part of our strategy. We believe that a partnership with a world leading developer and publisher such as NetEase will accelerate our growth, particularly in China's world leading mobile game market."
According to Newzoo.com, China’s expansive mobile game market generated $23 billion in 2018-- which accounted for over 62% of the total games market revenue. The industry is thriving; as revenues continue to rise year on year, experts in the field expect the number to reach $42 billion by 2022.
Codemasters has agreed to support game development with its proprietary technology, resources, and existing game assets.
Over the next three years, Codemasters is to receive a minimum of $8 million in game revenue, beginning with an expected $4 million in the current financial year, ending March 31st 2019. Once NetEase has recouped these $8 million, any profit generated by the game, its lifetime revenue, will be shared between the partners.
Following the news, Codemasters’ Board of Directors now believes its Adjusted EBITDA for this financial year will be “ahead of expectations”.
For more news and updates on Codemasters:
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
On today's podcast: Asiamet Resources discuss the feasibility study on their BKM copper project. Live Company Group talk about their final results for 2018 today. Russ Mould talks about the semiconductor index and the following stocks: Trufin, Avesoro & DS Smith.
CEO of Cerillion Louis Hall is “delighted” as this “significant win for the Company [is] reflective of the larger contracts we are now securing, and will benefit revenues and earnings in the current financial year and beyond."
Five financial stories, trending today in a 60 second podcast, including: The United States blamed Iran for attacks on two oil tankers in the Gulf of Oman yesterday that drove up oil prices and raised concerns about a new U.S.-Iranian confrontation, but Tehran bluntly denied the allegation.
On today's podcast: Safestay discuss the acquisition of Hostel Pisa. Botswana Diamonds talks about the diamonds recovered from Thorny River Bulk Sampling. Europa Metals provides a drilling update for their Zinc-Lead Toral Project in Spain. Glen Goodman talks crypto.
Five financial stories, trending today in a 60 second podcast, including: Conservative MPs will begin the process of choosing their new leader and the next prime minister later when a first round of voting is held in Parliament. Voting will take place by secret ballot in the Commons, with a result expected some time after 1pm.