United Communications Partners Inc (UCPA)

[naturalborninvestor]

To complete the 2013 analysis

EDIT: note all financial results are translated to USD by today's exchange rate

Nyheter365
http://largestcompanies.com/company/nyheter365-AB-1193164/closing-figures-and-key-ratios

- There is no entry in this database for Abrego / Nativeclicks (Spanish incorporated subsidiary) and for Tre Kronor Copenhagen

- Nyheter365 is said to have generated USD 56k in net profits in 2013 of which 80% are owned by UCP worth USD 45k.

- So, adding together all proportionate shares of net profits owned by UCP(315K + 120k + 20k+ 45k) we get a value of USD 500k of net profits generated by the subsidiary divisions that should be on the 2013 UCP financial statements. Instead, we have a loss of $1m. A difference of USD 1.5m that should be further scrutinized.

- Part of this loss may be attributed to another subsidiary of Tre Kronor that is hardly ever noticed. Tre Kronor Creative AB, to my knowledge, formed the advertising division within Tre Kronor. I also kind of recall that there was consideration to close this operation down as part of the 2014 restructuring program, yet the company is still named a fully-owned subsidiry in the latest Q2 2014 financial report, so it's worth the analysis here.

Tre Kronor Creative AB
http://largestcompanies.com/company/Tre-Kronor-Creative-AB-1272861/closing-figures-and-key-ratios

- According to this same database, Tre Kronor Creative AB generated about USD 2.1 million worth of revenues, but produced a loss of USD 378k on this operation. If we add this loss to the overall proportionate share of net profits, UCP should still have shown a profit of approx. USD 100k in 2013.

- That leaves approx USD 1.1m in costs associated with the UCP holding company which are not associated with the subsidiary divisions.