Snakk revenue continues to soar, but loss widens

Mobile advertising company Snakk Media has notched $3.02 million revenue for the six months to 30 September, its first unaudited half year result since since listing on the alternative exchange in March.

The amount is 83 percent of the revenue it posted for the last full reporting year and a 147 percent jump on the previous half year. It’s also up 116 percent on the $1.22 million achieved for the April to July quarter.

The company’s buoyant revenue growth recently saw it ranked sixth on the Deloitte Fast 50 Index of fast-growing Kiwi companies, with 486 percent growth for the year 31 March.

However, Snakk posted a pre-tax loss of $837,652 for the half, up 15.7 percent on the same period last year.

Chief executive Mark Ryan says its revenue growth is outpacing the average market growth of about 46 percent year on year forecast for the next five years.

He attributed the wider loss to the costs of scaling up the business.

“When you’re in high growth industries it’s one thing to win the business, but another thing to get it out the door. We’ve definitely put cost into the business over the last six months in areas like sales, operations, delivery and production.

“From a cost perspective we’re still putting people into the right areas of the business and a lot of the thinking has been that we don’t hire the right people too late.”

Snakk Media is eyeing long term growth rather than setting expectations about profitability in the short term, says Ryan.

“What we need to do is establish ourselves as an economic player in New Zealand and Australia and go into our Asian expansion well. That’s going to take money and investment and specialist partners and new technology.”

The company continues to explore its options for Asian expansion, says Ryan, adding there is vast diversity in the region in terms of market maturity, device adoption and sophistication. It could break into the region through a joint venture, under its own brand, a partnership or through a merger or acquisition.

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