Hugo Games announces signs agreement with Arsenal and
continue its revised product strategy.
Copenhagen, January 27th. 2017 - Hugo Games A/S (OAX: HUGO) a
mobile interactive entertainment developer and publisher of
mobile games follows its revised strategic product focus by
signing an agreement with the Premier League club, Arsenal
Football Club. As a consequence of the strategic choice of
revising the product strategy to fulfill the long term
vision, Hugo Games estimates impairment.
Arsenal to join our soccer game.
While the top football clubs in the world may battle it out
on the field, many are coming together in Hugo Games' highly-
anticipated mobile soccer game. Hugo Games is proud to
announce that Arsenal F.C., one of the most popular teams in
the world, is joining with Real Madrid and FC Barcelona as
the first three teams to be included in the new game,
scheduled for release in 2017.
The company's new strategic product focus will include its
recent agreements with Real Madrid, FC Barcelona and Arsenal
that will result in a soccer game.
"The access to interact with these major clubs fan-bases to
market our coming soccer game is a very unique agreement and
give reasons to be very optimistic about our future with the
soccer game" says CEO, Henrik Kølle.
The soccer game is in a category with a significantly higher
earning than the "endless runner" category. The game is as
such expected to have a great amount of the ressources
allocated.
With this great opportunity that lies within the soccer game,
it is obvious that the board of directors and management have
chosen to revise its product strategy and title
prioritization why Hugo Games will now focus its resources
and development on its soccer game as well as the company's
other games in categories where earnings are determined
satisfactory - and where Hugo Games have the necessary skills
to truly contribute.
Release-plan
In the light of the revised strategic product focus Hugo
Games release' schedule for 2017 will change into the
following release-plan for 2017:
1. Skateboarding game with Nyjah Huston. Nyjah will be
joined with his friend and American rapper, Lill Wayne, with
whom Hugo Games have signed a contract, so that his songs can
be used as soundtracks in the game. Included in the agreement
is also the right to use Lill Wayne for marketing purposes
related to the game.
2. Doodle Jump 2(working titles). As stated in earlier
press releases the game has passed a major milestone as the
prototype has been approved by Doodle Jump licensee, Lima
Sky. It is Hugo Games expectations that this very productive
cooperation will continue towards the release of Doodle Jump.
As stated in earlier announcements the release of the game is
subject to final approval by Lima Sky.
3. Soccer Player (working title). Having succeeded in
gathering some of the world's biggest football clubs and
having included access to their social media channels for
marketing purpose, it is Hugo Games expectations that this
game will earn its rightful place among tier-1 football
games.
4. Hugo Nordic (working title). A new sim/farm category
game where the company's vast experience from making and
updating Hugo World are taken into all aspects of the
development.
5. New Match-3 game (no current title). Knowing that the
company's first Match-3 title, Hugo Flower Flush did not
achieve the success expected, the knowledge collected and as
well as the match-3 game engine developed makes it
considerably easier, cheaper and faster to make a second
Match-3 title. This makes in highly relevant with a new game
in this potentially very attractive category. Development has
been initiated.
Once the above games have been globally released, it is Hugo
Games' clear expectations that the company will become a
cash-flow positive company and thereby fulfilling part of the
longterm vision.
We truly believe that the experience, competencies and
resources built up in Hugo Games up over the last couple of
years, makes the company stronger than ever and poised to
create the success that the company's shareholders expect.
Estimated impairment
As a result of the revised new product strategy - and in line
with the announcement dated 12th of October 2016 - the
company have decided that it will write down its capitalized
development cost related to games published that no longer
will see significant development and updates. The total
write-downs of capitalized cost over the last 3-4 years
regarding the games that now will see a new and lower
prioritization is approximately DKK 30 million which will be
incorporated in the company's 2016 accounts.
About Hugo Games
Hugo Games is a Nordic mobile games publisher and developer
located in Copenhagen. At Hugo Games we are passionate about
games and we are committed to making titles that will engage
and bring genuine joy to people for years. We have a
consistent portfolio of games globally available across a
wide range of platforms including iOS, Android, Windows,
Amazon and Facebook.
More information available at www.hugogames.com
This company announcement contains forward looking statements
related to the future business and financial performance and
future events or developments involving Hugo Games A/S. Such
statements are based on the current expectations and certain
assumptions of Hugo Games A/S' management, of which many are
beyond Hugo Games A/S' control. These are subject to a number
of risks, uncertainties and factors, including but not
limited to competition, industry downturns, inability to
enforce contractual and other arrangements, dependence on key
personnel and other market and economic factors. Should one
or more of these risks or uncertainties materialize, or
should underlying expectations not occur or assumptions prove
incorrect, actual results, performance or achievements of
Hugo Games A/S may (negatively or positively) vary materially
from those described explicitly or implicitly in the relevant
forward-looking statement. Hugo Games A/S neither intends,
nor assumes any obligation, to update or revise these
forward-looking statements in light of developments which
differ from those anticipated.