Resources minnow now eSports tech play Arrowhead Resources is breaking into the African market with its Gaming Battle Ground online eSports Tournament Facilitation Platform.
The ASX-listed company – to be renamed Emerge Gaming Limited following a reverse takeover – has signed a content distribution agreement for the platform with MTN Group Ltd, Africa’s biggest mobile-network operator by sales.
Listed on the Johannesburg Stock Exchange, MTN Group is the 12th largest company on the JSE with a market capitalisation of more than AUD$26 billion. MTN Group is a leading emerging market mobile operator, servicing 237 million people in 22 countries across Africa and the Middle East.
MTN South Africa (part of MTN Group) will provide the Gaming Battle Ground platform with access to its subscribers and marketing support.
GBG will offer tournament and competition setup services primarily in relation to mobile games, as well as the provision of rich media content for marketing purposes.
MTN South Africa has approximately 30 million mobile phone subscribers and in its last financial year generated AUD $4 Billion in revenue.
Revenue will be generated by MTN South Africa through charging a daily fee to its customers for access to the GBG platform and will remit 40% of the shareable revenue (i.e. revenue after costs, fees and value added tax) to GBG.
GBG has commenced integrating the Gaming Battle Ground platform into MTN South Africa’s operations and expects to complete full integration with MTN South Africa and launch by April 2018.
The agreement is in line with GBG’s international roll out strategy to expand into the rapidly growing e-sport market,” GBG CEO Gregory Stevens said.
“The partnership validates GBG’s business model and offers third party endorsement of the GBG technology.
“The agreement will assist GBG to fast track the generation of registered users, the commercialisation of the GBG Platform and should provide an immediate source of revenue for GBG.
“It also creates a template to enable us to enter into a vast number of jurisdictions and negotiate Enterprise partnerships with multinational and global enterprise partners and telcos, which we are currently pursuing,” he added.
In June 2017, Arrowhead announced the acquisition of GBG, an online gaming platform that facilitates skill based competitions in eSports, including peer-to-peer matches and tournaments.
Via Arrowhead, an initial public offer of $5 million will provide this future eSports group the required capital to drive future commercial opportunities in the industry.
Shares in Arrowhead finished Tuesday trading unchanged at 1.2c.