Snakk narrows annual loss as South East Asia sales more than double
Snakk Media [NZX: SNK], which aggregates publishers' advertising space on mobile devices and matches it to demand, narrowed its annual loss while more than doubling sales in South East Asia, which now eclipse revenue in New Zealand.
The Auckland-based, Sydney-headquartered company reported a loss of $581,000 in the 12 months ended March 31, down from a loss of $4 million a year earlier. Revenue climbed 15 percent to $10.5 million, including a 165 percent jump in sales across South East Asia to $1.8 million.
"While our revenue growth was strongest in Asia, we have continued to build the business across all our markets," chief executive Mark Ryan said. "Our gross margins are at an all-time high, exceeding guidance we provided to the market by a significant factor."
Snakk migrated to the NXT board from the NZAX in November, providing quarterly updates on operating measures relevant to their business under the market's disclosure regime, which is less onerous than for the NZX's main board. The shares last traded at 60 cents.
The mobile advertising firm updated its milestones for the 2017 financial year, targeting a 1 percent click-through rate, gross margin at 62 percent, compensation ratio of 42 percent, and staff turnover of 24 percent. In 2016 it achieved a click-through rate of 0.9 percent, gross margin of 63 percent, compensation ratio of 47 percent and staff turnover of 16 percent.
The company reduced its operational cash outflow to $1.7 million in the year from $4 million in 2015, and raised $2.2 million in October. It had cash and equivalents of $2.9 million as at March 31, a level Ryan described as "a solid cash buffer."
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