SOURCE: United Communications Partners

December 16, 2015 09:54 ET

UCP Monthly Shareholder's Newsletter

NEW YORK, NY--(Marketwired - Dec 16, 2015) - United Communications Partners (OTC PINK: UCPA) announces its Quarterly Shareholders Letter.

4Q: October/November/December 2015

We welcome back our shareholders from around the world to the 4th quarter issue of the UCP Newsletter. In it you will find information as reported by the management of the various companies that fall under our holding company umbrella. 

Thank you for your steadfast support. We wish you a Happy New Year and a strong 2016! ..........Ken

3Kronor Stockholm

A letter from the CEO of 3Kronor Stockholm:

Dear shareholders:

My first quarter as company CEO is soon to be over. It has been an exciting period. Our main focus has been on due diligence of the organization, our processes, our clients and our overall business model. We have a solid organization with a lot of ambitious and professional people so we are well equipped to meet the changes that the media industry is going through right now.

The digital transformation is speeding up. You can notice that clients are more and more open for changes, moving their investments from traditional media into more digital channels. Still some of our client´s digital footprints are small but even the most traditional clients are opening up for change. This is very motivating for me, and the whole organization.

We have areas within our business that need more attention and more resources. These areas are mainly: Insight/Biz Intelligence, Search/Tech and Digital/online broadcasting. I am very glad to announce that we have made an important recruitment of Lina Bergman as our new Head of Business Intelligence. She is a sharp and young professional, a perfect fit for Tre Kronor. She has worked within analysis and insight both at Carat/Vizeum and most recently she spent two years with OMD as Insight Manager. She will join us at the end of Q1.

As to new clients, the quarter has been spectacular. We landed Synsam-nordic (www.synsam.se), a top five revenue client for us going forward. Another new client, Hornbach (www.hornbach.se), is the first client that has come from our International Columbus Network partnership. Leos Lekland (www.leoslekland.se), though a smaller client, has great potential. We have also doubled our scope of work with SAS (www.sas.se) to also include Search and Programmatic strategy/buying for the whole SAS group. We have more clients in the pipeline and overall a very good trend right now. Expect more new clients in Q1 and Q2.

The trends for media investments are shown in the media barometer, on our corporate website. You will notice a big decrease for Print and Search but positive development for Outdoor, Cinema, TV and digital/internet. Regarding search, the media agencies are losing ground towards the Search specialist agencies. However, it is very encouraging to see that Tre Kronor is instead increasing heavily in Search for our existing clients with more in the pipeline as well.

As mentioned in our last newsletter we have moved into new offices at Hovslagargatan on Blasieholmen, downtown Stockholm. At our Christmas party last week, we also invited our families. All were happy when Santa Claus came to visit.

I have also started a rebranding project to streamline our graphic/visual approach and internal channels. We will move away from 3 Kronor and use Tre Kronor Media as our sender. More info on this will come in the next newsletter.

Håkan Jerner,
CEO and Partner

3Kronor Copenhagen

The last quarter of 2015 has been positively hectic for 3Kronor Denmark. Our cooperation with the digital agency Snow is proceeding according to the plans and is acting along with us as a fully functional digital unit doing both buying, strategy and production.

We have participated in most of the pitches for the Sweden office and have also been in the lead of some other Nordic pitches that we hope we can reveal more of in the future. We are preparing for the first quarter in terms of a bigger office and new hires. Luckily for us we've had no lost clients and are currently only building out our client portfolio. The Copenhagen office continues to meet with potential clients and expects an above average 1Q 2016.

HowCom/HowCom Evolution - Sweden

New Hires

Chrisoula Constantinou was hired in December as Campaign Manager. Chrisoula has a background of campaign digital coordination and analysis from work at OMD and before that 3Kronor. She will strengthen HowCom's Digital Team.

Karolina Silverberg was employed in December as Office Manager. Karolina will be responsible for the new office functions.

Client Wins

Iduna Group, with retail chains Guldfynd, Hallbergs Guld and Albrekts Guld, is the market leader in jewelry in Sweden. Today Guldfynd can be found in about 60 locations with 120 stores throughout Sweden, including eight franchised stores. Hallbergs Guld has 33 stores and Albrekts Guld 42 stores in approximately 20 locations. The cooperation with HowCom will start with important fourth quarter campaigns.

General

HowCom will move in to a new office on the 21st of December. The new office is situated at Engelbrektsgatan 5 in the city center of Stockholm. It was specially designed by Spectrum Arkitekter as a state of the art office ready for 2020.

In Sight - Norway

The Norwegian media market is a bit uncertain these days due to a historically low oil price and weak currency rate. The Norwegian oil business is strongly affected and the unemployment rate is increasing as a consequence of the situation. Norwegian advertisers also seem to be a bit careful with their investments and our largest client, REMA 1000, have indicated that the budgets for 2016 will be significantly lower than in 2015. However, the final outcome of 2016 for REMA is impossible to predict. Our experience is that if the revenues of REMA 1000 drops, their market investments will follow immediately. We also have clients that see the economic uncertainty as possibilities and they are increasing their marketing budget for 2016. The overall picture is that 2016 is going to be a challenging year for many players in the Norwegian market. Below you find the media investment statistics for Norway:

In Sight have had a very strong focus on "NewBiz" activities the last quarter. We have succeeded with our structured and focused work and the results are many quality meetings and some very exciting incoming clients over the next 3-6 months. We have for the first time dedicated one person to work 100% with "NewBiz" and this has resulted in many good meetings with potential new clients. In many cases, the companies we meet don't have a plan for changing agency and tell us they are very satisfied with their existing agency partner. But after meeting us, they start changing their mind, learn new things from us that they haven't heard before and we get into discussions that lead to a consideration to change.

As you all know, these processes take a long time and often the contracts have a 6 months exit time. The competition is very strong in the Norwegian media industry these days. In fact, ad agencies are hiring people from media agencies and now offering media buying as a service they can do, too. This makes the ad agencies competitors and we have already experienced that one ad agency now has taken over performance activities for one of our clients. This is something we have to relate to and we need to think smart moving forward. We are planning to increase our digital competence as management has begun to work on a plan that we plan to share sometime in January. A final note: Our company logo is now blue and white.

About United Communications Partners

United Communications Partners (UCP) is a leading Nordic Region communication's group listed on the OTC Markets under the symbol UCPA. We are comprised of award winning innovative full service media agencies located in the Nordics. With the client's needs always top of mind, UCP's mission is to grow our client's business exponentially, utilizing cautious strategy, smart client development and expert advice. The core of our expertise exists within our pioneering performance based marketing, advanced digital capabilities, prominent business expansion success and creative deal structuring for our clients.

For more information please visit our website: www.ucpworld.com or find us on the NewMediaWire, news wire gateway to thousands of news outlets including: Reuters, DowJones, Bloomberg, Yahoo Finance, WSJ and many more.

NICLAS FRÖBERG
LARS BÖNNELYCHE
LARS BLOMBERG
ANNA-KARIN DARLIN
KENNETH ROSENTHAL

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