United Communications Partners Inc (UCPA)

[naturalborninvestor]

Q3 2016 out

Report for Q3, January-September, 2016
http://www.otcmarkets.com/financialReportViewer?symbol=UCPA&id=162967

Letter of CEO
We hereby file the UCP Quarterly Report for Q3 2016. The complete report can be viewed here. In addition to the report, we want to highlight the following in the UCP group development;

Net revenues and media billings
Net revenues are 34% higher compared with the same period in 2015. This is a consequence of new clients won the second half of 2015, new clients won in 2016 and increased sales of services to current clients. In the three months ended September 30, 2016, net revenues have grown more versus last year than during in
the first and second quarter, 44% growth compared to 34% in the three months ended March 31, and 26% in the three months ended June 30, 2016. The net revenues development this year follow the pattern of 2015 with high revenues in the first three months of the year and subsequently lower in the second and third quarter. Normally the revenues peak in the last three months of the year, which we also foresee this year. Compared with last year the clients’ media investments, including minority interest companies, have increased year to date with 18%. Our share of the aggregated media spend for all companies in the group increased by 35% ($ 20.8 MUSD) in the nine months ended September 30, 2016.
The media plans currently in place indicates that media investments the last three months of the year will be at least at par with last year. It means that our business will have grown significantly this year.

Gross profit and result of operations
Gross profit for the group has increased 32.3% during the nine months ended September 30, 2016, compared to 2015. The Gross profit margin year to date is 8.6% compared to 8.7% the same period last year. The operations has generated a profit of $191,000 year to date, compared to a loss of $321,000 the same
period last year. The selling, general and administrative expenses of the operations have increased 11.3% until the end of September compared to last year. The increase of expenses is lower in the third quarter mainly as an
effect of the investments in training, systems and tools made in the first half-year and the effect of the summer season. We aim to keep our organisation both efficient and effective, with a firm focus on creating better results both for us and for our clients.

Profit/Loss before taxes and minority interest
The loss before taxes and minority interests generated until the end of September is $22,000 compared to a loss of $205,000 in 2015. The loss available to shareholders for the nine months ended September 30, 2016, is $59,000. This is a decrease compare compared to the first six months ended June 2016, with a profit available to shareholders of $17,000. Lower income from equity investments is a major contributor to the decrease. Our aim however is to generate profit during the last three months of the year, improving the full year outcome.

We continue our efforts for increased sales and profitability for the group.

New York, USA, 18th of November 2016