5th Planet Games A/S — Earnings Release 2018

Nov 9, 2018

Announcement no. 40/2018 Copenhagen, 9 November 2018

Hugo Games' "Kings of Soccer" Mobile Game Not Performing as Expected – Leading to a 30 percent Cutback in its Nottingham Studio

COPENHAGEN, November 9th, 2018: The mobile game Kings of Soccer by Hugo Games (OMX: HUGO) is unfortunately not performing to expectations. Despite a major game update released in October, Kings of Soccer has, in its current form, not yet proved that it can reach a satisfying level of retention and monetization on its more than 1,900,000 installs.

However, the Hugo Games management still has high confidence in the potential of the Kings of Soccer game, but realize it needs a thorough reboot. Therefore, Hugo Games has decided to move the game development from the Nottingham studio to the new Berlin studio headed by gaming industry veteran Moritz Voss, former technology lead at King, who recently joined Hugo Games.

The missing performance means that the expected revenue and profit from the game also hasn't materialized, and the consequence is that Hugo Games will not be able to reach a positive EBITDA in Q4 2018.

"Everybody can be assured that we have not forgotten our goal of turning this company into a profitable one, and the goal of the Hugo Games management is to make sure that we reach a positive EBITDA" says Hugo Games CEO Henrik Nielsen.

As a first step and as a direct consequence of the current performance of Kings of Soccer, Hugo Games has made a 30 percent cutback on staff in its Nottingham studio.

"We are ready to take consequential decisions to make sure profitability is achieved. Going forward, we will only tolerate games in our portfolio which already are – or are about to become – profitable. Otherwise, we will cut the games and remove them from our portfolio."

With the transfer of Kings of Soccer to the Berlin studio, Hugo Games' Nottingham studio will be able to focus 100 percent on the development of the sequel to the legendary mobile game Doodle Jump, which is currently in soft launch.

The Hugo Games Leamington studio will continue to build the upcoming game based on the Vikings television series.

The new Sacramento, CA (USA) studio (the acquired 5th Planet Games) will continue developing the sequel to the popular and revenue generating Dawn of the Dragons.

The new team in Berlin, under Moritz Voss, will work on rebooting Kings of Soccer, while the existing and currently planned team will continue to focus on developing the upcoming puzzle games.

About Hugo Games

Hugo Games is a mobile games publisher and developer located in Copenhagen, Sacramento, Berlin, Nottingham and Leamington. We cooperate with premium sports brands as FC Barcelona, Liverpool FC and Paris St. Germain and superstar Cristiano Ronaldo. We are proud to expand the world of television series Vikings - and thrilled to produce sequels to the legendary games Doodle Jump and Dawn of the Dragons.

For more information see www.hugogames.com or contact Hugo Games CEO Henrik Nielsen +45 27 200 200