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08 Jan 2019 | 10:18

Codemasters expects earnings to top expectations after teaming up with NetEase

Video game company Codemasters on Tuesday said it expected adjusted earnings to top expectations after it teamed up wth China-based NetEase to develop a new mobile game.

Under the terms of the Agreement, NetEase agreed 'to commit an internal mobile development team, apply its proven knowledge of mobile game design, and take on all operational and publishing activities globally with regard to the game,' Codemasters said.

In return, Codemasters agreed to provide assistance with its proprietary technology, resources and existing game assets.

Codemasters would receive a minimum of $8m in revenue over the next three years, commencing with an expected $4m within the current financial year ending 31 March 2019.

Codemasters' total lifetime revenue from this agreement would depend on sales performance as profit generated by the game would be shared between the parties.

Based on these terms, Codemasters said expected its adjusted earnings (EBITDA) for the year ending 31 March 2019 to be ahead of expectations. '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,' Codemasters said. At 10:18am: (LON:CDM) Codemasters Group Holdings Plc Ord 1p share price was +19p at 180.5p

Story provided by StockMarketWire.com
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