United Communications Partners Inc. Shareholder's Newsletter: October 2019

NEW YORK, Oct. 22, 2019 /PRNewswire/ --

Dear Shareholders,

Unfortunately, since the last Newsletter in September Tre Kronor Media has received the result of the mobile operator 3's (Hi3G) pitch during the summer. After 9 years as a client of TKM 3 has decided to leave us when the contract expires at year end. 3 is one of TKM's top 5 clients. We have enjoyed working with 3 and together we have created great results for 3 through the years. We wish 3 continued success and hope to welcome them back some time in the future.  

We are pleased to announce that since September we have also won two new assignments: Tretti.se (e-commerce with goods) and BreOliv (a spreadable olive oil). We have already begun to work with them both. All agencies are continuing to work intensively to win new business to compensate for lost client revenue in year 2019 and to enable us to receive new revenues to, as far as possible, compensate for the loss of 3 in year 2020. We are still waiting for news on a couple of pitches and we are also in new pitches since September.

Our current forecast for year 2019 is still, as informed in the Q2 Letter of CEO, that the group will generate a net loss of $500,000.

Reply to questions from shareholders

We have received many emails and questions related to our Net revenues. We therefore want to clarify that Net revenues from some clients includes recharged cost of media procured on behalf of our clients, provided however that i) the media expenditure forms an integrated part of our assignment, ii) we are the primary obligor and iii) that our earnings (revenues) from the client are not only agency commission. For these assignments the cost of media expenditure is included in the Cost of revenues. This means that a growth in Net revenues does not necessarily lead to a Gross profit growth. For more information please see Note 2, Revenue Recognition, in our Financial statements.

We are also receiving questions and proposals from shareholders concerning our share structure. The outstanding number of shares is currently 1,617,887,264. At the board meeting October 18, the Board of directors decided to assign a committee to review the structure and present a proposal at the next board meeting in the end of December 2019.

Local Planet International

Local Planet International has its Annual Global Conference November 13^th - 15^th in London. The Annual Shareholders' Meeting is held the first day of the Conference.

The conference is an excellent opportunity for meeting LP International management, LP partners, and colleagues in other LP agencies around the world exchanging experiences and ideas, as well as attaining new insights and knowledge. This year's agenda includes LP Partner experts covering the industry's most discussed topics: E-commerce, Content | Video & Native, Addressable TV, Data Science & Analytics, Machine Learning & AI, In-Housing and Next Generation Innovation.  

Other News

Last week TKM participated in starting a campaign against internet hate speech on behalf of Prince Carl-Philips and Princess Sophia's foundation. The campaign has gained a great impact in Sweden, especially on Instagram. We are very proud to be given the opportunity to contribute to this important issue.

Looking forward 2020

It has been a tough year for the Company, and we are now totally focused on having a more positive year 2020.

Our prime priority is to continue to provide current clients with excellent services. We will continue to work to win new clients, projects and assignments, and in parallel continue to develop new products and services to offer to our clients. We will also review our cost base in preparation for year 2020, a project underway, and adapt our organisation to be better equipped for the future. Altogether, this shall contribute to future growth and profit.

Lastly, I want to apologize to all shareholders for this Newsletter being distributed later than the communicated timetable.

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.

Niclas Fröberg

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

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SOURCE United Communications Partners Inc.

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