Snakk Media lifts sales by 58% in 3Q, says high kiwi curbed gains
Snakk Media [NZX: SNK], which matches advertisers with apps and social media, said third-quarter sales rose 58 percent, and would have been even higher if not for the exchange rate with Australia, which accounts for 90 percent of revenue.
Sales were $2.3 million, in the three months ended Dec. 31, including more than $1 million for December, the first month it has exceeded that mark, the Auckland-based company said in a statement. That allowed Snakk to record its first quarterly operating profit, $27,000, which will be reinvested in the business.
Snakk's sales growth was crimped by the high kiwi against the Australian dollar. Before conversion back into local currency it recorded a 77 percent increase in Australian sales, the company said
The company said it is considering a dual-listing on the Australian stock exchange to reflect the dominance of its trans-Tasman market.
"Our sales operations are profitable," Mark Ryan, group chief executive told BusinessDesk in an email. "There are good margins in this business, for every ad we target and send to a smartphone or tablet app, game or site, we clip the ticket. We aim to buy for $1, and sell for $2."
The company listed on the New Zealand stock exchange's small-cap NZAX at 6.5 cents a share, and reached a high of 29 cents in March 2013. Snakk's shares fell 8.2 percent to 11.2 cents today and have fallen 58 percent in the past 12 months.