United Communications Partners Inc. Shareholder’s Newsletter: November 2019
NEW YORK, Nov. 22, 2019 /PRNewswire/ --
A good November so far. We have contracted new clients with a contracted annual net revenue worth of around $1.2M and a gross profit above $0.1M. The new clients include White Arkitekter, Ginger Joe and BreOliv. We have also sold additional projects to current clients with a gross profit value of $0.2M.
Generally, the media investments are decreasing due to lower media activity in the Nordic markets. Compared to last year media investments in Sweden have decreased 3% year to date. In October the media investments are approximately 20% lower than last year. Year to date media investments in Norway have decreased 5.6% and in Denmark 5%. It is a challenging environment.
We need to continue to deliver excellent services to our clients and offer new services that will strengthen our clients’ ability to reach their objectives. We do have new strategic services currently being rolled out.
How well we succeed in upcoming pitches in the Nordics will be crucial for the Company’s ability to create growth and profitability the next coming year. As part of our growth strategy we aim to start up Tre Kronor Media Norway in 2020.
The group entities are currently working with their business plans and budgets for 2020.
Local Planet International Ltd (LPI)
Local Planet had a summit in London last week under the theme “We are one”, with the objective of strengthening the networks position in international pitches. LPI has a central team in London driving most international pitches for the network although local market entities of course also are involved. The last year LPI has been entering partnerships with specialty service agencies to be able to offer client better and full services in all the markets where it has presence. The Local Planet network is continuing to grow in reach globally thanks to new affiliates.
LPI is forecasted to have annual billings of £2M and loss of £0.5M year 2019. This said, many client referrals are made between the agencies in the network creating billings, revenue and profit, which is not included in the books of LPI stand alone. Local Planet is a strong brand today and is winning new clients however due to investments in the build-up LPI is not yet delivering a profit.
As reported earlier LPI has appointed a Local Planet Management Network Leadership team, that will continue its work with establishing and developing the network operations and processes. The team has its next meeting in January 2010. The January meeting is 2 days and focused on how to make the network activating the now available new tools.
Tre Kronor Media Stockholm
Due to the loss of client TRE and other market factors, we are implementing a large savings program in Tre Kronor Media Sweden totalling a saving of $0.7M next year. During November we cut staff with 5 employees. We have also implemented a hire freeze due to the current financial situation. The objective is to generate a profit of at least $0.1M in 2020. The last quarter 2019 will generate a profit and contribute to dampen the loss in year 2019.
New client in Q4 is BreOliv. We have also sold additional services/projects to current clients.
Tre Kronor Media Gothenburg
New clients and assignments in Q4:
White Arkitekter -- A strategy assignment
Ginger Joe (brand of Accolade Wines (UK) -- Media campaign for e-sport in December and research.
Tre Kronor Media Denmark, Copenhagen
Since last month we have no new clients, but we have been busy doing strategy work for 2020 for many of our clients. We’ve also been involved in a major Nordic pitch that we are awaiting answer on in the coming weeks – so fingers crossed. There is much talk about how 2020 media market development will be, at the moment both agencies and clients are a bit uncertain of the outcome.
Local Planet Nordics
In November we have no new clients for Sweden. We are in a client pitch in Norway and have a few promising leads and proposals out in Sweden. We expect answers on these within the next couple of weeks.
Our casino client has briefed us that they will most likely not do any ATL media next year. They are struggling with high CPA’s and a big fine from the Swedish Gambling Authority.
In the next Newsletter we will also inform you about the Board of Directors view on the future share structure of UCP Inc.
Newsletters in 2020
In 2020 we will issue quarterly Shareholder’s Newsletters – January, April, July and October. In addition, we will of course issue Press releases or extra Shareholders Newsletters when we have concrete news affecting the Company.
On behalf of myself, the Board of Directors and other partners, I want to thank all shareholders for your interest in and continued support of UCP.
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
SOURCE United Communications Partners Inc.