22nd Mar 2016 10:15
LONDON (Alliance News) - DJI Holdings PLC said Tuesday its joint venture Qingdao Baifa Network Science Technology Service Co Ltd has launched its first Chinese Ministry of Finance-approved mobile lottery application, following successful trials in 2015.
The Chinese sports and welfare lottery products company said its 50:50 joint venture will collaborate with Shandong Sport Lottery, the lottery authority for Shandong Province, to promote the application throughout the province. DJI will be responsible for developing and executing the marketing strategy for the launch, it said.
This comes after a successful trial of sales of sports lottery products via mobile phones in Qingdao City in Shandong Province, which were first announced in October.
DJI said this is a "major development and revenue opportunity while online sales of lottery products remain suspended in China".
The Chinese government has temporarily suspended the sale of lottery products online since March 1, which has hurt DJI's revenue and profit. It is not known when the suspension will be lifted.
During restricted trials in 2014, app total sales ran at around GBP4.4 million a month, whilst average revenue per sure was around GBP44.00.
DJI added that it will use its relationships with Arsenal and Manchester City football clubs to promote and support the mobile app, using tailored content and special prizes such as signed merchandise and trips to the football clubs.
"This is a major milestone for DJI in using its rich experience of channel marketing and English Premier League club resources to promote the Chinese lottery since the suspension of online sales 12 months ago. We look forward to leveraging our exclusive football agreements and Qingdao Baifa's rights to market through third parties to dramatically expand the promotion channels for Shandong's sports lottery games," Chief Executive Darren Mercer said.
Shares in DJI were up 5.5% at 38.89 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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