LONDON (Alliance News) - Codemasters Group Holdings PLC on Tuesday said it expects earnings to come in ahead of market expectations as it has signed an agreement with Chinese game services provider NetEase Inc to develop a new mobile game.
Codemasters shares were trading 11% higher on Tuesday at 179.85 pence a share.
Under the terms, NetEase will 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. In turn, Codemasters said it will provide assistance with its proprietary technology, resources and existing game assets.
The video game developer said it will receive a minimum of USD8 million in revenue over the next three years, commencing with an expected USD4 million in the current financial year, which will end on March 31.
As a result, Codemasters said it now expects adjusted earnings before interest, taxes, depreciation, and amortization for financial 2019 to be ahead of market forecasts.
"We are thrilled to partner with NetEase for the development of this new mobile game," said Codemasters Chief Executive Frank Sagnier.
"We believe that a partnership with a developer and publisher such as NetEase will accelerate our growth, particularly in China's world leading mobile game market," added Sagnier.