Mobile Streams (MOS ), a mobile content and data intelligence company, announced a new 5-year contract to be the exclusive provider of NFT trading cards and other NFT products for the Extreme Fighting Championship (EFC).
Mobile Streams said it will provide a wide range of NFTs of EFC, in helping to engage existing fans and create new ones. NFT products will be sold via Mobile Streams' primary marketplaces on HeroesNFTclub that MOS is creating for EFC, and will also be accessible via the EFC website, social media accounts, and other digital touch points.
Additionally, the NFTs will be sold globally via MOS' telco contracts, its LiveScores sites and Apps, and the MOSMetaverse website.
Under the terms of the contract, the two parties have agreed a target revenue over the 5-year term of which MOS' share is approx. US$3.7m. This figure is not a forecast or guidance by MOS, but estimated revenue after any revenue-share payments. Revenue from the NFTs will come from both the sale price and a royalty on each trade of c. 5-10% the sale price. The agreement also requires MOS to make an initial cash payment to EFC, which is well covered by MOS' existing cash position.
Mark Epstein, CEO of Mobile Streams, commented: "We are delighted to have signed this contract. The EFC provides Mobile Streams with a globally relevant, exclusive and unique sports partnership opportunity. We can't wait to get started."
Cairo Howarth, President of EFC, commented: "We are delighted be signing with Mobile Streams for our NFTs. We think the partnership has huge potential. Not only to drive significant revenue but also to produce a new generation of digital merchandise that drives engagement, participation and rewards fans. We look forward to a long and successful partnership."
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Another major contract win for MOS, only 3 weeks after the company scored an $8.8m 5-year contract with Mexico's Necaxa FC. This followed Octoboer's US$3.7m contract with Mexico's Atlante FC, as well as the Pumas and Mexican National Team deals. MOS also announced in July two major NFT license deals with PAS Kisisel Asistanlik Hizmetleri and Andrea Olmedo Lopez. The company said in August it was in discussions for 30 additional NFT deals.
Markets have now become accustomed to regular multimillion contract announcements by MOS as the company continues to solidify its status as a major provider of licensed NFTs, with its NFT division expected to exceed all other revenue streams by end of FY23.
This is a particularly exciting contract as it is MOS' first for a combat sports organisation. Headquartered in Johannesburg, EFC is Africa's largest MMA promotion company. It has contracted over 200 of the world's leading MMA athletes into 10 annual live events, broadcast to over 120 countries. EFC is extensively broadcast in Sub-Saharan Africa with an expected audience of over 200m in the next 12 months.
Today's announcement also expands the MOS HeroesNFTclub brand into the combat sports sector, which is part of MOS' strategy to increase reach and strength of its brand across different vertical sporting revenue streams. With this year's launch of HeroesNFTclub, MOS is now both an NFT producer and marketplace provider, presenting additional revenue opportunities.
In its FY22 update MOS reported revenue of £1.1m, an increase of 180% from £395K in FY21, with a strongly weighted 2H22 delivering revenue of £810K, a 270% increase YoY from £219K in 2H21. June 2022 alone returned revenue of £181K, representing a sequential monthly increase of 62% since MOS' last performance update on 1 March 2022. The strong trend of revenue growth is expected to continue into 2023.
The global NFT market is expected to reach US$122bn by 2028, with more than US$17bn in sales in 2021 and US$35bn expected to be generated this year. The fastest growing sector within this space is the sports NFT market. MOS' string of large sports contract wins this year demonstrates it is well positioned in the sector.
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