Covid-19 has resulted in an extraordinary number of employees working from home. At a minimum, social distancing and self-isolation are recommended, while many cities and states are enforcing shelter in place protocols. There is an even greater need for digital entertainment as face-to-face socialization is, at least for now, nearly impossible.
Added to the equation is the nationwide closure of schools and daycare centers, giving work-from-home parents the new stress of keeping their kids busy while trying to maintain normal productivity levels at their jobs. The Wall Street Journal is even tracking digital ideas for families via a cumulative online list.
This unprecedented global environment has created a new level of demand for mobile game companies like Kuuhubb (OTC: BCDMF, TSXV: KUU), which requires no need to leave the home or order a physical product online as even package deliveries are viewed with unease as potential virus carriers.
Family-friendly Mobile Gaming
Kuuhubb’s mobile games focus on the underserved female demographic, but have the potential for broader reach within families as well. My Hospital, a simulation game appropriate for both teens and adults, immerses the player in the healthcare world by designing and managing a medical center. It has the potential to raise important conversations within families surrounding the importance of self-isolation and the impact of Covid-19 in hospitals.
Parents and kids alike are drawn to Recolor, a mobile coloring book with over 50 million downloads. It has a simple interface and over 3,000 illustrations to choose from, making it an engaging app for every family member in isolation.
Video Link: https://www.youtube.com/embed/lSSWg2i7OIo
Online Socialization and Sharing Capabilities
If social media was an integral part of life before the Covid-19 outbreak, these online platforms are only set to grow as people look for new opportunities to connect with people outside of the home.
Tiles & Tales is the first game to market that combines two of the most popular game genres amongst women: match-3 tiles and novel-like storylines. Launched in March 2020, the game’s interactive scenes provide the feeling of socialization, something that is sorely lacking while the world is in self-isolation mode.
More interactions between players will be added this year, in addition to seasonal in-app content that will provide users with genuine social connections. Similarly, Recolor already has an active online community of 4 million users and tens of millions of images shared online — a core feature of this top-ranked app.
Incorporating social media is an integral part of Kuuhubb’s growth strategy in 2020. 39% of women discover new games through friends and family and the company plans to incorporate a network of influencers to grow user bases.
Future Releases Poised to Fill a Growing Void
Women gamers cite stress relief as a primary reason for playing mobile games. As the world faces increasing uncertainty surrounding the Covid-19 pandemic, more households will continue to search for online solutions for relaxation, entertainment, and socialization.
Even before the outbreak, mobile gaming reached $68.5B in revenue for 2019. Future industry projections prior to Covid-19 predicted 2022 revenues to reach $95.4B, an 11.3% CAGR.
Kuuhubb’s revenue for 2019 was $12.4M and the company’s forecasted revenue for 2022 is $100M. With just three games currently launched, Kuuhubb’s scalable business model is set to take advantage of the market for both coloring apps (a US$100M+ market) and match-3 tile games (a multi-billion-dollar market). By the end of 2020, the company expects to offer between five and six revenue-generating products, becoming cash-flow positive as a result.
Trading at a significant discount to its peers, Kuuhubb is currently valued in the C$3-4 range. Other Helsinki-based game developers have recently been acquired between US$275M and US$700M.
Kuuhubb continues to provide engaging, high-quality mobile games for audiences across the globe. With three more games set to launch in 2020, there has never been a more pressing time for Kuuhubb to meet the global demand for mobile games.
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