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Snakk Media 1H sales soar 148 percent as it benefits from smart screen start up

Monday 2nd December 2013

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Snakk Media, ranked sixth in the Deloitte Fast 50 index of the fastest-growing businesses, posted first-half sales growth of 148 percent, helped by the contribution from its smart screen start up.

Sales rose to $3 million in the six months ended Sept. 30, from $1.22 million a year earlier, the Auckland-based company said in a statement. Its net loss widened to $837,652 from $723,820 as operating expenses and staff costs almost doubled to $2.2 million.

The company, which aggregates publishers' ad space on mobile devices and matches it to advertiser demand, is investing for growth, opening a New Zealand sales office, adding sales and operational staff in Australia and introducing new technologies. Snakk Media said it exceeded predicted industry growth rates for Australia and New Zealand in the first half and it expects to continue to outpace market growth in the second half as it aims to establish itself as the dominant local player.

"We are starting to see an end of the seasonality of smartphone and tablet advertising," chief executive Mark Ryan said in the statement. "In previous years the first two quarters were far quieter, with most brands spending their mobile ad dollars during the lead-up to Christmas and the period after. Now it's 'always on' media activity."

Snakk Media didn't provide a full-year forecast.

The company said second quarter revenue almost tripled, helped by the smart screen start-up which contributed $1.8 million.

Snakk Media expects to announce its next new market entry by the end of this fiscal year ending March 30, Ryan said.

Plans are underway to expand in Asia and the company is evaluating a range of strategic investment opportunities to differentiate and scale its operations, he said.

It raised $6.5 million in the first half through a share purchase plan and private placements. As at Sept. 30, the company had cash and cash equivalents of $6.9 million, from $665,813 a year earlier.

Shares in Snakk Media rose 1.4 percent to 14.8 cents, valuing the company at $38.3 million. The stock listed at 6.5 cents in March.

The company won't pay a dividend for the period.

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