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Snakk loss down and SE Asian sales soar

NZ NewswireNZ Newswire 31/05/2016 Paul McBeth

Snakk Media, 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 per cent to $10.5m, including a 165 per cent jump in sales across South East Asia to $1.8m.

"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 per cent click-through rate, gross margin at 62 per cent, compensation ratio of 42 per cent, and staff turnover of 24 per cent.

In 2016 it achieved a click-through rate of 0.9 per cent, gross margin of 63 per cent, compensation ratio of 47 per cent and staff turnover of 16 per cent.

The company reduced its operational cash outflow to $1.7m in the year from $4m in 2015, and raised $2.2m in October.

It had cash and equivalents of $2.9m as at March 31, a level Ryan described as "a solid cash buffer."

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