NEW YORK, NY--(Marketwired - May 25, 2017) - United Communications Partners (
Letter of CEO
We hereby file the UCP Quarterly Report for Q1 2017. 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 8% higher in the first three months compared with the same period in 2016. This is a consequence of new clients won in year 2016 and increased sales of services to current clients.
Compared with last year the clients' media investments, including minority interest companies, have decreased with 10%. Our share of the aggregated media spend for all companies in the group decreased by 12% ($3.1 MUSD) in the first three months of the year. The decreased media investments is primarily due to a change in the seasonality of the spending pattern of clients this year compared to last year, with higher investments planned for later in the year. The increased digital media investments is also a factor that contributes to some extent to the lower media investments as the investments are normally lower for the same results. Overall, for year 2017 we expect the media investments to increase compared to last year.
Gross profit and result of operations
Gross profit for the group has increased 6% compared to the first three months 2017. The attained Gross profit margin is 7.9% compared to 8.0% this year.
The operations generated a profit of $97,000 the first quarter compared to a profit of $136,000 the same period last year. The selling, general and administrative expenses of the operations have increased 11.6% so far this year. Costs for retaining qualified staff, costs for recruiting staff with specialist skills within digital disciplines, investments in training, systems and tools are main contributing factors to the increased costs. We do aim to keep our organisation both lean and effective, with a firm focus on creating better results both for us and for our clients. We also need to secure the best people to service our current clients, win new clients in a competitive market and create further growth.
Loss before taxes and minority interest
Profit before taxes and minority interests generated the first three months is $293,000 compared to a profit of $142,000 in 2016. The profit available to shareholders for the three months ended March 31, 2017 is $271,000.
The year has started reasonably well, but we are not content. We aim for further growth and will continue to strive for both growth and increased profitability for the group.
New York, USA, 15th of May 2017
Niclas Fröberg / Chief Executive Officer
For the full report go to www.ucpworld.com
Contact: United Communications Partners Ken Rosenthal 516-640-7297 hejken1@gmail.com
