Snakk narrows first-half loss
Snakk sees "clear window" for growth.
See also: Snakk boss disappointed at static share price
Snakk Media [NZX: SNK] narrowed its first-half loss as it fattened margins on increased revenue, led by faster growth in Southeast Asia.
The company aggregates publishers' advertising space on mobile devices and matches it to advertisers' demand.
The Auckland-based company reported a net loss of $240,000, or 0.9c per share, in the six months ended September 30, from a loss of $2.2 million, or 0.83c, a year earlier.
Revenue climbed 13% to $4.6 million, while direct media costs almost halved to $3.1 million. That widened Snakk's gross margin to 67% from 36% a year earlier, and helped the company generate positive second-quarter earnings before interest, tax, depreciation and amortisation of about $51,000, the first time it's been in the black on that basis in a quarter.
"We see a clear window of opportunity to build a highly valuable APAC (Asia Pacific) mobile advertising business," chief executive Mark Ryan says.
"We plan to achieve this via a combination of organic growth and M&A activity, with a strong focus on the Southeast Asian market."
Snakk migrated to the NXT market earlier this month, raising $2.2 million in a share offer at the same time, making it the second company to join the stock market's new board for small and medium sized companies with less onerous disclosure obligations. The shares last traded at 4.6c.
The company had cash and equivalents of $1.6 million, before it completed the share offer, and narrowed its operational cash burn to $1.2 million in the half from $2.5 million a year earlier.
Australian revenue fell 11% to $3.2 million in the half, while New Zealand sales climbed 42% to $791,000, and Singapore revenue came on stream at about $683,000.
(BusinessDesk)
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Paul McBeth
Mon, 30 Nov 2015
Mon, 30 Nov 2015
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Snakk narrows first-half loss
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