Kuuhubb Reports Continuing Strong Quarter Performance
April 10, 2018
Toronto, Canada –
Kuuhubb Inc. (“Kuuhubb
” or the “Company
”) (TSX-V: KUU), a technology company focused on acquiring, developing and distributing mobile game applications, is pleased to provide an update on recent financial performance. References below to “US$” are to United States dollars. The Company’s consolidated financial statements (and related management’s discussion and analysis) for the quarter ended March 31, 2018 are planned to be published on or before May 30, 2018. The Company’s financial year end is June 30.
Financial Highlights for the Three Month Period Ended March 31, 2018:
- Revenue: Increased to US$6.6 million during the three months ended March 31, 2018, an increase from the previous quarter ended December 31, 2017 (which was US$6.35 million). This revenue was generated from existing and new user sales of the Recolor app, the in-application purchases of virtual goods from the My Hospital game, along with in-application advertising revenue.
- Advertising Revenue Contribution: The three months ending March 31, 2018 was the first full quarter where the Company’s newly introduced advertising monetization model was fully implemented and showing immediate revenue contribution.
- Brand and IP Owner Partnerships: Continue to play an essential role in Kuuhubb´s growth strategy. Highly customized campaigns with Kellogg’s and Lionsgate have proven to be very successful with high user engagement. For the three months ended March 31, 2018, the Company signed additional contracts with new globally recognized brands and IP owners, and expects to see a significant increase in revenue from this stream in the coming quarters.
- Nearing Cash Flow Break-Even: During the quarter ended March 31, 2018 the Company operated at or near cash flow break-even. In addition, Kuuhubb also repaid, as scheduled, a significant amount of debt (equivalent to about US$650,000) during the period ending March 31, 2018 strengthening the Company’s balance sheet.
- Improved Financial Position: The Company is pleased to announce it has improved its financial position in order implement and accelerate its Asian project and product road map. The Company secured during the quarter ended March 31, 2018 US$1.6 million in additional funds, which included a pre-payment from advertising platform partners and bank loan. With this additional cash, the Company has the necessary funds to adequately execute on its numerous global growth initiatives.
Jouni Keränen, CEO of Kuuhubb, stated: “I am proud of the Kuuhubb team for delivering another solid quarter achieving both quarter-on-quarter revenue growth and month-on-month cash flow break-even. With the additional, non-dilutive cash injection, the Company is well positioned to execute the growth drivers of Japan, India and Android launches, as well as expanding the product portfolio.”