Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Snakk shares slide as loss widens in strategy to chase sales

Snakk Media shares slide as loss widens in strategy to chase Asian sales growth

By Suze Metherell

June 13 (BusinessDesk) - Shares in Snakk Media fell 10 percent after the company, which matches advertisers with app users and social media, said annual sales nearly doubled, while its loss widened 62 percent as the company chased growth in Asia.

The loss widened to $1.89 million in the year ended March 31, from $1.16 million a year earlier, the Auckland-based company said in a statement. Sales rose to $7.1 million from $3.7 million, as direct media more than doubled to $4.18 million. Operating and staff expenses rose to $4.77 million, from $3.1 million.

"The date we end up knocking out a profit is really to be determined. The focus now is on growing a significant business as quickly and carefully as we can," Snakk chief executive Mark Ryan told BusinessDesk. "We've got money in the bank and the business is pulling strong revenue, but we still haven't been throwing it around and hiring people willy nilly." The rising costs were a mix of "talent and technology" as well as moving office costs.

The shares recently traded at 9.8 cents. The stock listed New Zealand Alternative Index at 6.5 cents in March 2013 as a compliance listing, meaning no funds were raised at the time, and soared to 29 cents on its first day of trading. It has since declined 66 percent.

Snakk raised $6.5 million in May last year through a share purchase plan in a,private placement at 12 cents a share. The company has said those funds will be used for potential acquisitions as the it targets growth. The company is also mulling another listing, across the Tasman on the Australian stock exchange to access capital quickly and fund its aspirations.,

"We've got some pretty ambitious growth plans over the next few years, so at some point they have to be connected into a public market where if we need to grab $20 million and make a series of acquisitions we need to be able to do that very quickly and easily and that might still be New Zealand but that might also be the ASX," Ryan said.

The company generates more than 85 percent of its sales out of Australia, and the strength of the New Zealand dollar against the Australian currency had crimped sales returns.

"Exchange rates, sometime they're with you and sometimes they're against you, and the kiwi is in fantastic shape right now," Ryan said. "At the moment it is kind of against us" and stripping out the unfavourable exchange the company reported year-on-year growth of 117 percent, he said.

Snakk is expanding further into the Asia, setting up an office in Singapore as a launching pad to the wider market.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news