CDM.L Share News (CDM)

(Sharecast News) - Video game developer and publisher Codemasters has entered into a joint development agreement with Nasdaq-listed NetEase - a China-based internet and online game services provider - to develop a new mobile game for the global market, it announced on Tuesday.The AIM-traded firm said that under the terms of the agreement, NetEase would 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 would provide assistance with its proprietary technology, resources and existing game assets.The company said it would receive a minimum of $8m in revenue over the next three years, starting with an expected $4m within the current financial year ending 31 March.Total lifetime revenue for Codemasters from the agreement would depend on sales performance as profit generated by the game, following recoupment by NetEase of the $8m, would be shared between the parties.Based on those terms, the Codemasters board said it now expected its adjusted EBITDA for the year ending 31 March to be ahead of expectations."We are thrilled to partner with NetEase for the development of this new mobile game," said Codemasters chief executive officer Frank Sagnier."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."Codemasters also pointed out that, according to Newzoo.com, China's mobile game market was worth an estimated $23bn in 2018."We are pleased to gain the benefit of Codemasters' rich experience and highly evolved technology," said NetEase vice-president Ethan Wang."With these attributes, alongside NetEase's world class development team and design capabilities, as well as our extensive publishing know-how, we hope to bring an exciting mobile game to market to thrill players around the globe."Codemasters noted that the agreement was separate and in addition to the strategic PC publishing partnership between itself and NetEase, which was announced on 7 November.