Proactive Investors - Run By Investors For Investors

Animoca Brands signs revenue-generating deal with China partner

The partnership is expected to generate US$8 million revenue in calendar year 2019.
toy blocks that spell the word FUNDING
The company has also raised $6 million in a placement priced at 9.8 cents

Animoca Brands Corporation Ltd (ASX:AB1) has entered into a collaboration framework agreement with iClick Interactive Asia Limited (NASDAQ:ICLK).

The two companies will establish a strategic partnership with the goal to jointly develop and grow an online marketing business serving the video game sector.

iClick is an independent online marketing technology platform that connects worldwide marketers with audiences in China.

It was ranked China's largest independent online marketing technology platform in terms of gross billing in 2018 Q1-Q3 by Frost & Sullivan.

Reselling agreement to be finalised in the near-term

Animoca and iClick are now working to finalise a strategic reseller partnership wherein Animoca will become a strategic reseller of iClick’s online marketing services.

The goal is to assist iClick in expanding into the international video gaming markets currently served by Animoca Brands.

Notably, the reseller agreement is expected to generate revenues for Animoca of around US$8 million (about A$11 million) in the calendar year 2019.

China is a massive gaming market

Animoca believes that the partnership will unlock significant opportunities for new audience reach and revenue generation in China, the world’s largest mobile gaming market with over 25% of global games revenue.

China’s mobile games domestic revenue is projected to grow from US$16 billion in 2018 to US$24.7 billion in 2022, and the number of mobile gamers is set to increase from 598 million in 2018 to 720 million in 2021.

READ: Animoca Brands board members acquire company shares

In order to support business expansion, Animoca has raised $6 million at a premium price of 9.8 cents per share from strategic investors.

Investors include Katherine Yip, founder of Pacific Alliance Group and co-founder and partner of Vina Capital, Moses Tsang, founder of AP Capital and founding chairman of Goldman Sachs Asia Pacific, Sonny Vu, founder of Misfit (later acquired by Fossil Group for US$260 million), and Yat Siu, chairman and co-founder of Animoca Brands.

Animoca's co-founder and chairman Yat Siu said: “By partnering with iClick, we aim to significantly expand the marketing and distribution capabilities of Animoca Brands in China.

"We look forward to collaborating with the largest independent Chinese online marketing platform, and to utilise this rare opportunity to leverage - including through our AI subsidiary Zeroth - the valuable data assets of over 780 million Chinese user profiles.”

View full AB1 profile View Profile

Animoca Brands Corporation Ltd Timeline

Related Articles

immotion vr racing game
February 06 2019
The out-of-home VR hardware and content maker turned over more than £1mln in the second half of 2018 with ‘only’ 150 or so headsets in operation, but it wants that figure to climb to over 1,000 by the end of this year
electric vehicle charging
May 13 2019
The junior company's RecycLiCo patented process represents a breakthrough in the recycling of lithium-ion batteries by providing high extraction of cathode materials such as lithium, cobalt, nickel and manganese at battery-grade purity
June 11 2019
Company has developed a drug-device combination, which uses hyperpolarised 129-Xenon gas MRI.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use