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Emerge Gaming (ASX:EM1) launches MTN Arena in South Africa

Technology
ASX:EM1
08 July 2020 11:15 (AEST)
Emerge Gaming (ASX:EM1) - CEO, Gregory Stevens

Source: Business News

Emerge Gaming’s (EM1) MTN branded platform, MTN Arena, is now live in South Africa.

This launch comes after signing an agreement with Mobile Telephone Networks Proprietary (MTN) to distribute its technology in South Africa.

MTN is a South African-based mobile network operator that allows gamers to enter competitions, win prizes and earn raffle tickets in online games.

MTN Arena has been in the works after two years of collaboration to develop the product. The platform is based on Emerge’s mobile competition and tournament technology.

The launch of MTN Arena is supported by a go-to-market strategy which includes a media campaign, bulk SMSing and distribution through MTN’s digital channels. These channels reach roughly 29 million subscribers in South Africa.

MTN has appointed an international specialist digital agency to deliver the paid campaign and creative digital marketing has commenced.

MTN Arena can be found through MTN South Africa’s digital channels, with the focus being on Facebook and Twitter, where it has 1.5 million and one million followers, respectively.

MTN Play is another digital channel which is a traffic-driven subscriber portal where gaming, music and video content is distributed.

Tournaments include daily, weekly, weekend and monthly competitions for gamers to enjoy and potentially win prizes and money.

Additionally, subscribers can sign up for MTN Arena by receiving an SMS through MTN’s customer value management division.

Under the agreement, MTN will bill a daily subscription fee against mobile user accounts when they subscribe to the platform. Emerge will receive a proportion of net revenue generated by the MTN Arena platform.

MTN will market and distribute its platform through direct SMS marketing, promotional campaigns, advertisers and listing on the MTN customer portal.

First revenue is expected to be generated in the current quarter.

Company shares have dropped 7.14 per cent to trade for 2.6 cents each at 10:44 am AEST.

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