31st Oct 2019 12:12
(Alliance News) - Computer game developer Codemasters Group Holdings PLC said Thursday it extended its video game rights for the FIA Formula One World Championship until 2025.
Codesmaters and Formula One Management agreed to extend the exclusive franchise deal to 2025 from the current 2021 end. The new agreement has a further option to extend to the 2026 and 2027 seasons.
The agreement was the longest extension Codemasters had secured for the franchise, having held it since 2008.
Under the deal, Codemasters will pay a higher minimum guarantee to F1 which will increase each year during the agreement. The increases are equivalent to an annual compound growth rate of 12% between the F1 2019 and F1 2025 games.
In return, Codemasters will receive advertising and inventory support across all F1 channels including trackside at races and on social media. Codemasters and F1 will also work together to seek out further revenue opportunities.
"The renewed long-term agreement with F1 is a testament to our successful partnership," Chief Executive Officer Frank Sagnier said. "The contract extends our exclusivity on the F1 game until 2025 (plus a two year potential extension thereafter) and the increased size and scope of the deal reflects our common ambitions to take the business to the next level."
"The growing number of addressable platforms combined with increased marketing support from FOM and the continued shift to more profitable digital sales and services give us full confidence we can not only continue to thrive as the number one sports racing game but also as one of the top global sport gaming franchises", Sagnier added.
Shares in Southam, Warwickshire-based Codemasters were 5.5% higher at 230.00 pence in London on Thursday.
By Ahren Lester; [email protected]
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