On 26 March 2019, Animoca Brands Corporation Limited (ASX: AB1), an app maker for smartphones and tablets from the media and entertainment industry group, has announced that it has secured the global licensing agreement with Formula 1® (F1) for developing and publishing the world-famous racing series F1® Delta Time based on non-fungible tokens (NFTs).
Formula 1® is considered as the leading motorsports and has approximately 1.6 billion TV viewers with 506 million fans, and it gets broadcasted across more than 180 territories. F1 consists of 21 races, and it has presence in 21 countries on five continents. F1 reported an annual race attendance of more than 4.1 million people and the majority of the fans are under top income group. F1’s influential commercial partners include Rolex, Pirelli, DHL, Emirates and Heineken. It also has a media rights partnership with leading broadcasters such as Sky, Fox Sports and ESPN.
In 2016, Liberty Media, a multinational company, which operates in 30 countries acquired F1, and since then, is working towards the growth of the sport and has also entered into partnerships with various most innovative companies across the globe to improve the fan experience.
Now, under the licensing agreement with AB1, AB1 will be responsible for driving the fan engagement. For this, it will be developing as well as publishing the blockchain game F1 Delta Time. The phase one of the game with NFTs based on Formula 1 intellectual property will be launched on 10 May 2019.
For Animoca Brands Corporation Limited, this licensing agreement with Formula 1® is an achievement as it will help the company to broaden its customer base as well as increase its presence globally. Based on the licensing agreement, Yat Siu, Co-Founder and Chairman of Animoca Brands, considers this as a notable achievement, and he also highlighted that through Formula 1, they will have a considerable reach to drive product uptake and revenue growth by increasing the consumer exposure to the blockchain.
In the last six months, the stock of AB1 has given a negative return of 1%. However, in the previous one month, the stock has generated a decent return of 13.79%. Now, with this licensing agreement with F1, there is a scope of further growth in the future in terms of revenue and the increased customer base. Thus, one can expect that stock may generate a better return in the near future.
Since January 2019, there were other achievements of the company as well. One of the recent was the launch of a mobile game based on “Wonder Park” animated film. The announcement was made on 14 March 2019 and was launched by the AB1’s subsidiary company Pixowl. This game has a decent rating on the google play store.
On 8 March 2019, Animoca Brands was able to secure a contract worth ~$12.6 million as a part of the reseller partnership with iClick Interactive Asia limited and also, obtained a service co-operation agreement with Vigame Network Co. Ltd to resell the advertising inventory of iClick.
On 25 February 2019, OliveX Limited, which is the subsidiary company of AB1 secured US$1 million in funding from the strategic investors to advance its artificial intelligence initiatives.
The shares of AB1 settled the day’s trading at A$0.100 (At market close on 26 March 2019), up by 1.01% as compared to its previous closing price. The company has a market capitalisation of A$74.45 million and approximately 752.05 million outstanding shares.
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