The new contract involves six existing and one new top grossing game. Deal estimated to generate in excess of USD 30 million in gross revenue during the next three 3 years.
LONDON, 20th of September, 2021 - Flexion Mobile Plc (Nasdaq: FLEXM), the Android games distribution company today announces that it is expanding its collaboration with a leading existing US game publisher. This follows upon a string of very large contracts that Flexion has signed recently.
The new contract amendment "Amendment" means that the distribution rights for five existing games, first announced in December 2018, have been extended until at least July 2023. A sixth top tier game currently covered by a separate agreement will be incorporated into the new contract in April 2022 and renewed for at least two more years until April 2024. If required, Flexion will have the right to extend the term for this top performing title on a rolling monthly basis until the project has reached an agreed level of return. The Amendment also includes a new top grossing title which according to Sensor Tower generated USD 10m to the publisher in August in Google Play. This game will be launched during Q1 2022 and Flexion has secured the right to distribute it in all its main channels. The Amendment includes a significantly improved revenue share to Flexion. As part of this deal, Flexion will pay the publisher USD 1m upfront and USD 8m in March 2022. Flexion will report this investment as an intangible asset.
"This is yet another example of Flexion cementing its leading position in the alternative distribution market for mobile games and shows how committed we are to investing in our unique portfolio. Not only does it benefit us and the game developers but the ecosystem as a whole including our strategic distribution channels. It also shows how we have strengthened our ability to make bigger and more lucrative deals", says CEO Jens Lauritzson
Flexion and the publisher plan to make a separate joint announcement once all disclosure approvals have been obtained.
This disclosure contains information that Flexion Mobile is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 20-09-2021 08:40 CET.
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