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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news