Snakk boosts annual revenue 40%, more than doubles loss
Snakk Media [NZX: SNK], which helps brands find and reach consumers using apps, games and social media on their smartphones, tablets and other smart screens, lifted annual sales 40% as it pushed into South East Asia, and fattened gross margins through the second half of the year, while its loss more than doubled.
The Auckland-based company reported a loss of $4.26 million, or 1.68 cents per share, in the 12 months ended March 31, from a loss of $1.89 million, or 0.74 cents, a year earlier, it said in a statement. Gross revenue advanced to $9.9 million from $7.1 million a year earlier. Gross margin widened to 51% in the second half from 32% in the first half of the period.
"In the second half of the year we delivered a much improved group performance, strongly growing both revenue and gross margin, validating our market strategy," chief executive Mark Ryan said. "We will continue to focus on the great work we did in the second half of the financial year, keeping our costs under control, increasing our gross margins and continuing to drive strong revenue."
Like a number of other recently listed early-stage firms, Snakk is forgoing short-term profits and dividends as it chases rapid revenue growth to create long-term value.
The company burned through $3.8 million of cash in the year, leaving it with cash and equivalents of $2.5 million as at March 31. In May, the company secured a $1.3 million rolling debt facility, and said it had $2 million in cash.
Snakk said it anticipates the debt facility will scale in size with the business, and it is looking at avenues to raise new capital.
"Due to the improved commercial performance in the second half of the year, the ongoing capital requirements of the business have reduced significantly," it said.
Ryan said Snakk is investigating ways to accelerate growth in Asian regions, with partnerships, joint ventures and mergers and acquisitions all available options.
Snakk shares last traded at 8 cents per share, and have gained 13% this year.