Kuuhubb Inc.
TSX VENTURE : KUU

Kuuhubb Inc.

November 06, 2017 08:37 ET

Kuuhubb Inc. Provides Corporate Update

Highlights:

- Successful integration following Sumoing Oy acquisition

- Monthly Active Users increase of 24%, reaching 6.3 million MAU in October 2017

- Gross revenue increase of 21%, to approximately USD$2 million in October 2017

TORONTO, ONTARIO--(Marketwired - Nov. 6, 2017) - Kuuhubb Inc. ("Kuuhubb" or the "Company") (TSX VENTURE:KUU), a technology company focused on acquiring, developing and distributing lifestyle and mobile video game applications, provides a corporate update.

Successful Integration of Sumoing Oy Acquisition:

On August 18, 2017, Kuuhubb announced the 100% acquisition of Finnish lifestyle application company Sumoing Oy, a Helsinki-based game development studio that specializes in lifestyle genre apps targeted to the female audience. Sumoing Oy is the creator of Recolor, the world's number one digital coloring book application on mobile.

Following the acquisition of Sumoing Oy, Kuhubb's management team engaged in a focused 90-day integration plan, designed to capitalize on synergies, evaluate costs, identify growth opportunities, re-deploy resources and human capital to capture value, and mitigate financial and operational risks. Kuuhubb management is happy to report that all significant integration efforts have been successfully achieved.

"Our key focus following the acquisition of Sumoing Oy was to be flexible, but thorough during our set 90-day integration time frame. Most important to us was making sure that we intergrate Kuuhubb's global team with Recolor's product team and continue executing our planned growth drivers, without disrupting the product innovation and day-to-day operations. Building a strong culture and fostering creativity and ownership was top of mind during this sensitive integration phase, and we are very pleased that it went smoothly and efficiently," stated Jouni Keränen, Chief Executive Officer of Kuuhubb.

Successful Marketing of MyHospital Following Global Distribution Agreement:

On June 20, 2017 Kuuhubb announced that it had finalized an agreement with Warsaw, Poland based, global game developer and publisher Cherrypick Games to become its global distributor for its "My Hospital" simulation game for iOS, Android and Web. MyHospital represents an increasingly popular sub-genre of medical simulation games, and offers complexity and depth often missing in this niche.

"Immediately following our global distribution agreement, our team began implementing Live Ops (for example, weekly promotional events within the game), data driven marketing campaigns and launching in new global markets, resulting in improved game metrics and fast user and revenue growth," stated Pasi Piipponen, Chief Operating Officer of Kuuhubb.

Significant Revenue Growth and User Base Expansion:

The successful integration of Sumoing coupled with the launch and execution of marketing strategies for both Recolor and MyHospital have translated to strong growth for the months of August, September and October 2017:

  • Monthly Active Users ("MAU") growth from August to October was 24%, reaching 6.3 million MAU in October 2017 (Recolor & MyHospital total).

  • Gross revenue growth from August to October was 21%, totalling approximately USD$2 million in October 2017 (Recolor & MyHospital total).

"While these are still early days for Kuuhubb, I am proud of what our team has already achieved by demonstrating strong revenue and user base growth immediately following our Recolor acquisition. We will continue to execute our growth drivers and are excited to grow both the existing products and add to our female product portfolio in the future," stated Jouni Keränen, Chief Executive Officer of Kuuhubb.

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 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, 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.

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