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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news