Kuuhubb Reports Second Quarter Financial Results
March 2, 2018
Revenue increased to US$6,344,947 during the quarter.
Toronto, Canada -
Kuuhubb Inc. ("Kuuhubb" or the "Company") (TSX-V: KUU) is pleased to announce its unaudited financial results for the three and six month periods ended December 31, 2017. The Company’s unaudited interim consolidated financial statements as at and for the three and six months ended December 31, 2017 and related management’s discussion and analysis can be found on the Company's SEDAR profile at www.sedar.com
. References to "US$" 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.