Shares in MySQUAR Limited (LON:MYSQ) jumped at the opening bell on Thursday after the Myanmar-language social media, entertainment and payment platform signed a deal that will see it provide Wi-Fi and digital content services in Myanmar Railways trains.
The AIM-quoted firm has signed a memorandum of understanding (MoU) to form a partnership with other service providers to roll-out and finance the services.
The WiFi, video games and chat platforms will be able to be accessed by passengers in the carriages, stations and on the platforms of the Yangon Circular train and the national rail network, which is operated entirely by the train company.
Services will be offered for free to travellers and MySQUAR will make money through advertising and through direct carrier billing from the games and streaming content. Myanmar Railways will also take a cut of the profits.
"We are pleased to participate as a digital content provider for business opportunities with Myanmar Railways,” said chief executive Eric Schaer.
“MySQUAR continues to actively seek strategic partnerships that build brand awareness and allow us to broaden our user base through new channels.
“We anticipate this partnership could have vast long-term potential as the railways are improved and railway use is projected to multiply over the coming years as roads become more congested."
The Yangon Circular train is a local commuter rail network with 46km of track that runs in a loop connecting rural neighbourhoods with the city centre and sells between 100,000-150,000 tickets per day.
Myanmar's national rail network runs north to south with branches to east and west with over 6,000km of track and there are plans to significantly upgrade the current infrastructure in the coming years.
Shares were up 11.1% to 2.25 in early deals.
--Updates for share price--