- Quarterly revenue increased to US$6,344,947
- Increase of 123% quarter over quarter
- Revenue generated from;
- Sales of Recolor app,
- In-application sale of virtual goods from the My Hospital game,
- In-application ad revenue
TORONTO, March 02, 2018 – Kuuhubb Inc. (“Kuuhubb†or the “Companyâ€) (TSX-V:KUU) is pleased to announce its unaudited financial results for the three and six month periods ended December 31, 2017. The Company’s unaudited interim consolidated financial statements as at and for the three and six months ended December 31, 2017 and related management’s discussion and analysis can be found on the Company’s SEDAR profile at www.sedar.com. References to “US$” are to United States dollars. The Company’s financial year end is June 30.
Highlights for the Quarter Ended December 31, 2017:
Revenue increased to US$6,344,947 during the three months ended December 31, 2017, which represents an increase of 123% from the US$2,843,112 of revenue earned during the previous quarter ended September 30, 2017. This revenue was generated from sales of the Recolor app, the in-application sale of virtual goods from the My Hospital game and in-application ad revenue.
Net operating loss was US$1,117,089 for the three month period ended December 31, 2017, which represents a significant decrease from the net operating loss of US$1,762,700 incurred during the previous quarter ended September 30, 2017. The net loss during the quarter ended December 31, 2017 includes share-based compensation expense of US$781,547. The decrease in net loss was mainly due to increased revenue and increased efficiencies in user acquisition and business activities.
The Company recorded a comprehensive loss of US$301,358 during the three month period ended December 31, 2017, compared to a comprehensive loss of US$2,038,018 recorded during the three month period ended September 30, 2017. Comprehensive loss is the operating loss reduced by a translation gain amount resulting from currency adjustments.
The Company had shareholders’ equity of US$23,367,041 as at December 31, 2017, compared to shareholders’ equity of US$12,421,346 as at June 30, 2017.
Near the end of November 2017, the Company completed the acquisition of all of the outstanding shares of Neybers AB. Neybers, an interior design game where users can play with photo quality items from real brands, fits well with Kuuhubb’s strategy of building a portfolio of female oriented niche lifestyle community and design applications. Neybers has a strong focus on esthetics and female user base with a 22 minute play session average – attributes that dovetail well with Kuuhubb’s flagship app Recolor.
In December 2017, Kuuhubb entered the Japanese gaming market, by hiring a team of seasoned management, business and product development professionals in the Japanese gaming community. Japan’s growing mobile gaming market represents a great opportunity for Kuuhubb, especially in the lifestyle genre apps targeting the female audience.
About Kuuhubb
Kuuhubb is a company active in the digital space that focuses mainly on lifestyle and mobile video game applications. Its strategy is to create sustainable shareholder value through acquisitions of proven, yet underappreciated, assets with robust long-term growth potential. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on developing U.S. brand collaborations and Asian partnerships.
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and development and growth of the Company’s business) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, risks related to the growth strategy of the Company, the possibility that results from the Company’s growth plans will not be consistent with the Company’s expectations, the early stage of the Company’s development, competition from companies in a number of industries, the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company and the other risks disclosed under the heading “Risk Factors” in the Company’s annual information form dated October 30, 2017 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Kuuhubb Inc.
Jouni Keränen – CEO
[email protected]
Office: +358 40 590 0919
Bill Mitoulas
Investor Relations
[email protected]
Office: +1 (416) 479-9547
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