Esports Mogul harnesses rapid growth to springboard into Latin America
Hot on the heels of announcing a quadrupling of its user base over the past month, Esports Mogul (ASX: ESH) has struck a partnership deal with Axeso5, an online video game publisher based in Latin America.
Axeso5 will become Esports Mogul’s official partner for its professional gaming tournament platform, Mogul Arena.
The move is aimed at raising the company’s global footprint, further expanding its user base and monetising its range of gaming-related services in Latin America – a region with around 600 million people.
Axeso5 is one of most recognised online video games publishers in Latin America, with a strong market position and a rapidly growing gamer population.
Under the Agreement, Esports Mogul will see Mogul Arena rolled out into Axeso5’s network of over 7,000 cybercafés throughout the continent, including Mexico, Brazil, Argentina and Colombia.
To supplement the deal, Axeso5 has an extensive registered user base of over 14 million active gamer accounts, to which eSports events will be strongly marketed including events organised by Esports Mogul.
Widening commercial scope and breaking the language barrier
As part of its commercial offensive, Esports Mogul plans to launch Portuguese and Spanish versions of its platform to better assist in obtaining market traction and becoming a cult-classic brand name in the region.
According to Esports Mogul, the agreed partnership and the introduction of its services to gamers in Latin America is planned for Q2 2018, giving it time to initiate the first step in an “extensive localised language strategy plan for 2018.”
Once monetisation is successfully introduced, both parties have agreed to operate under a revenue-share model.
Exclusive Axeso5 games available on Mogul Arena will be co-branded, and Axeso5 will continue to provide its localised payments system to its users, which will be integrated into the Mogul Arena platform.
From Axeso5’s point of view, its extensive relationships in Latin America’s gaming industry will be able to assist Esports Mogul in establishing wider synergistic relationships and tournament partners in the region, as well as sourcing event sponsors.
“As the recognised leading video gaming brand in Latin America, Axeso5 is our ideal partner in the region, and we look forward to utilising their extensive regional expertise and experience, coupled with the market-leading functionality of the Mogul Arena platform to become a key player in the Latin American eSports market,” said Gernot Abl, managing director of Esports Mogul.
The Latin American gaming market was valued at $4.4 billion in 2017, which accounted for 4.1% of the global gaming market, promising a large growth potential.
Last year the continent recorded a growth rate of 13.9% year-on-year from 2016-17, highlighting Latin America as one of the most lucrative regions for the newly emergent professional Esports industry.
“We partnered with Esports Mogul to bring the revolution of eSports to Latin America. Mogul Arena is an outstanding product that delivers a smooth competitive gaming experience like no others we have played. Joining forces with Esports Mogul’s strong team and Axeso5’s regional leadership means we will boost the competitive scene in the region and take eSports in Latin America to the next level,” said Cristian Schweizer, CEO of Axeso5.