Aussie esports company makes a killing in Africa

Aussie esports company makes a killing in Africa

Online gaming and esports company Emerge Gaming (ASX: EM1) has muscled further into the African market, now boasting access to more than 29 per cent of the continent's entire population.

Emerge has acquired access to millions of new subscribers in Ghana, Kenya, Namibia, Nigeria, Zambia and Zimbabwe, following the integration of its Arcade X platform with several major African telcos.

This comes just a few months after the company first made waves in South Africa by partnering with the country's three largest mobile providers MTN, Vodacom, and CellC.

Arcade X is a platform where casual, hardcore and tournament gamers can play more than 300 gaming titles against each other via their mobile, console or PC.

Popular games played on Arcade X include League of Legends, the world's largest online multi-player, as well as Hearthstone and Clash Royale.

Arcade X's technology is new to African markets and Emerge says it is in a position to become the leading provider of its kind on the continent.

"Emerge's Arcade X technology is a first in African emerging markets, which provides the company with a stronghold in the region by being the main service provider that caters to mobile gamers and corporations," says the company.

CEO and executive director Greg Stevens says the company's first foray into South Africa set an excellent precedent for its further success in Africa. 

"This is a fascinating time for Emerge with the completion of proprietary integration enabling the Company to expand into six additional emerging African countries, further enhancing our monetisation strategy to generate significant advertising revenue across the African continent," says Stevens. 

"Our recent success in South Africa has provided the leverage needed to enter new emerging markets and gain significant traction, and I am pleased that Emerge is now able to effectively integrate its technology in those markets."

The total population of Africa is around 1.2 billion and there are currently 960 million mobile subscriptions across the continent.

Current internet penetration is at 18 per cent with 216 million internet users and it is predicted that smartphone penetration on the continent will grow at a fast 50 per cent year-on-year before 2020.

Emerge says this represents "an opportunity to enter these markets during their infancy phase" and provide a basis for organic growth of Arcade X in Africa. 

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