(Alliance News) - Shares in Mirriad Advertising PLC more than tripled Friday after it secured a "breakthrough" contract to provide its in-video advertising technology with Chinese technology giant Tencent Holdings Ltd.
Shares in Mirriad were more than three times higher at 20.25 pence in London on Friday.
The two-year contract follows the two firms working together to develop the technology to work more closely with the video platforms of Tencent.
The deal will provide Tencent with exclusivity over the technology in China, with Tencent paying Mirriad a monthly licence fee and Mirriad providing a minimum volume of advertising and promotional work. Work above this minimum will be charged incrementally.
The contract will enhance 2019 revenue "immediately", generating "multiple millions" of revenue over the entire term of the agreement.
In 2018, Mirriad generated GBP14.4 million pretax loss on revenue of GBP415,886.
"This substantial new contract with Tencent provides a clear vote of confidence in Mirriad's updated strategy and our refocused efforts in China," Mirriad Chief Executive Officer Stephen Beringer said. "We are delighted to be working with such a key player in the Chinese market and we are excited about the results we can achieve with Tencent."
"Mirriad's ambition is to partner with the biggest broadcasters, digital platforms and advertisers around the world to deliver untapped revenue streams by seamlessly inserting brand advertising into content," Beringer added. "Hard work on the development of our core technology has made this particular partnership possible and we look forward to more deals of this type in the near future."
Mirriad Advertising (MIRI)