Snakk pushes into Southeast Asia as third quarter revenue grows 8%

Snakk Media group chief executive Mark Ryan
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Snakk Media [NZX: SNK], which aggregates publishers' advertising space on mobile devices and matches it to advertiser demand, generated more sales in its targeted market of Southeast Asia, helping lift revenue 8%  in the third quarter.

Sales rose to $2.9 million in the three months ended December 31 from $2.6 million a year earlier, the NXT-listed company said in a statement. That took year-to-date sales to $6.7 million, an increase of 11% , of which revenue from its business in Southeast Asia made up 15%  compared to just 5%  a year earlier.

Snakk posted earnings before interest, tax, depreciation and amortisation of almost $63,000, compared to an ebitda-loss of $1.8 million a year earlier, its second quarter of positive earnings.

"After several years of high growth in Australia and New Zealand, we recognise our next major growth market is Southeast Asia," chief executive Mark Ryan said. "Securing our second consecutive quarter of modest profit performance is further proof that last financial year's investments into our people, processes, technologies and internal systems have made Snakk a more efficient business today."

Earlier this month, Auckland-based Snakk said its third-quarter gross margins stayed above target in the final three months of 2015, while warning the fourth quarter traditionally puts margins under pressure.

This week the company signalled plans for a share sale plan for investors holding 1000 shares or less to either sell or increase their holdings, subject to a special meeting today approving a change in Snakk's constitution. The plan would see Snakk cover the brokerage of those investors selling their small holdings. Details of the plan will be released tomorrow.

Snakk migrated to the NXT board from the NZAX board in November, and this month undertook a one-for-20 share consolidation. The shares last traded at 76c , valuing the firm at $11.9 million.

(BusinessDesk)


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8% - so much for high growth in a high growth sector.

What next? Open up in Africa to capture more non-profitable revenue growth?

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It looks like the new broom swept out the old business model. Mr Ryan may have the makings of a nice little business here. It seems that the cash burn is under control and they are now selling. Growth is slow now they are no longer paying up front for it. Does that still make them a $12-$15 million company? I'm unsure about that.

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I have traded SNK shares since listing and they now need some serious income to get any movement in share price. The way the shares have fallen since the last capital raising may make any future cp a tad difficult.
Umm most companies try to increase the number shareholders they have on the register.
Was going to NXT the right move?

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I live and work in SE - two countries long term, do business in mNy others.

There is little prospect of significant revenues for Snakk here. Possibly Singapore.

Few, if any here, understand the Snakk business model or what their value proposition s for customers. It sure beats me.

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