Snakk puts greater emphasis on South East Asia as 3Q revenue grows 8%

Thursday 25th February 2016

Snakk Media, which aggregates publishers’ advertising space on mobile devices and matches it to advertiser demand, generated more sales in its targeted market of South East Asia, helping lift revenue 8 percent in the third quarter.

Sales rose to $2.9 million in the three months ended Dec. 31 from $2.6 million a year earlier, the NXT-listed company said in a statement. That took year-to-date sales to $6.7 million, an increase of 11 percent, of which revenue from its business in South East Asia made up 15 percent compared to just 5 percent a year earlier.

Snakk posted earnings before interest, tax, depreciation and amortisation of almost $63,000, compared to an ebitda-loss of $1.8 million a year earlier, its second quarter of positive earnings.

"After several years of high-growth in Australia and New Zealand, we recognise our next major growth market is South East Asia," chief executive Mark Ryan said. "Securing our second consecutive quarter of modest profit performance is further proof that last financial year's investments into our people, processes, technologies and internal systems have made Snakk a more efficient business today."

Earlier this month, Auckland-based Snakk said its third-quarter gross margins stayed above target in the final three months of 2015, while warning the fourth quarter traditionally puts margins under pressure.

This week the company signalled plans for a share sale plan for investors holding 1,000 shares or less to either sell or increase their holdings, subject to a special meeting today approving a change in Snakk's constitution. The plan would see Snakk cover the brokerage of those investors selling their small holdings. Details of the plan will be released tomorrow.

Snakk migrated to the NXT board from the NZAX board in November, and this month undertook a one-for-20 share consolidation. The shares last traded at 76 cents, valuing the firm at $11.9 million.

BusinessDesk.co.nz

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