reports
- Fiona Orford-Williams
Snakk Media - Broadening out the offering
The benefits of the restructuring initiated in FY17 and continuing through FY18, should be more apparent in FY19 as the business runs for a full year on a lower underlying cost base. The upheaval in mobile advertising markets presents opportunities as well as threats and Snakk is diversifying its offering beyond geolocation in-app advertising to include a broader range of digital and data products. The group is placing shares at NZ$0.0425, raising $144k to ease its tight working capital position...
- Fiona Orford-Williams
Snakk Media - Loss significantly reduced to near breakeven
The restructuring initiated in FY17 started to benefit the group in Q218 and Snakk Media finally returned to profit in its second half. Revenues for FY18 were close to the prior year at NZ$10.3m (NZ$10.6m), with increased self-service mobile advertising revenues offset by a decline in business in Southeast Asia (where overheads have been pared back). The cost base in FY19e will be lower with the full-year benefit. The group had year-end cash of NZ$1.1m, just below the current market capitalisati...
- Fiona Orford-Williams
Snakk Media - Improved cash performance
Snakk Media has issued its Q3 KOMs, which are broadly consistent with its full-year targets, with an outperformance of the compensation to revenue ratio and a higher staff turnover than indicated. This figure, though, is highly volatile due to the small numbers involved. The company is still undergoing a review of its capital strategy and the share price is unlikely to recover until the outcome of this is published.
- Fiona Orford-Williams
- Self-service growth kicking in
Snakk Media has issued its Q2 trading update and performance against KOMs. These show signs that it may be turning a corner following restructuring carried out over the past year and the push into self-service. H118 revenue was up 13%, while operating expenses were down 22%. Full interim figures to end-September are scheduled for the end of November. In May 2017, the Manji Family Trust subscribed at a premium to additional shares to help fund working capital, now holding 17.2% of the equity. A s...
- Fiona Orford-Williams
FY17 results and revised KOMs
Snakk Media (SNK) has published its FY17 results and reset its FY18 key operating milestones (KOMs). While revenues were a shade ahead of the prior year, the operating loss widened considerably from NZ$1.0m to NZ$3.3m, reflecting the investment made in repositioning the business. With a broader range of revenue streams and a reduced cost base kicking in more strongly from Q218, financial performance may start to improve. In early May, the Manji Family Trust subscribed at a premium to additional ...
- Fiona Orford-Williams
H117 peak investment
Snakk Media (SNK), which connects brands to mobile audiences, has published its Q317 key operating milestones. These include a premium gross margin of 60%, compared to peers at 40%. This is a little below the company’s 62% FY17 target, with the year to date figure also now at 62%. The click-through rate softened slightly to 0.96% from 0.98% in Q217, still well above the mobile industry average (0.62%). Staff turnover at 12% was below the full year guidance of 24%, with the compensation to revenu...
Investment in expansion
Snakk Media (SNK), which connects brands to mobile audiences, has published its Q217 key operating milestones. These include a premium gross margin of 61% compared to peers at 40%. This is a little below the company’s 62% FY17 target, although the ytd figure of 64% still allows some leeway. The click-through rate ticked up from 0.95% in Q1 to 0.98% in Q2, not far adrift of the FY17 target of 1.00% and well in excess of the industry average (0.62%). Lower staff churn post Q1 and Q2 recruitment ha...
Gross margin expands in Q117
Snakk Media (SNK), which connects brands to mobile audiences, has announced that its Q117 gross margin was 67%, its highest ever result and well ahead of the annual target for 62%. The gross margin measure is one of four key operating milestones (KOMs) released on a quarterly basis. In addition, at just 12% in Q117, Snakk said it was comfortably inside its full year staff turnover target of 24%. However, the reported compensation to revenue ratio of 46% is higher than the full year target of 42%...
Demonstrating strong fiscal management
Snakk Media (SNK) has reported a net loss of NZ$0.58m for FY16, down from NZ$4.0m year-on-year. The company delivered a 14.9% increase in revenues y-o-y to NZ$10.5m. Excluding non-cash expensing of staff options, net cash usage for the year was -NZ$0.4m, while net assets increased 66% y-o-y to NZ$4.2m. SNK ended the year with NZ$2.9m in net cash. It has also announced its FY17 key operating milestones (KOMs) and is targeting a gross margin of 62%, a click-through rate of 1.00%, a staff turnover ...
- Moira Daw
Second consecutive EBITDA positive quarter
Snakk Media has announced its second consecutive quarter of positive EBITDA for FY16 with Q3 EBITDA of NZ$62,662, reducing the year to date net loss to NZ$0.188m. The company also revealed that its Q3 revenues had increased 8% year-on-year to NZ$2.86m, driven by a 244% increase in revenues from its South-East Asian operations, which now account for 15% of the total. On 25 February at a special meeting of shareholders, Snakk Media also secured approval to launch a share sale plan.
Exceeding targets
Snakk Media (SNK) has formed a strategic partnership with US mobile ad tech company UberMedia to exclusively distribute its in-app social, interest, and geo-location mobile advertising products in Australia, New Zealand and South-East Asia. The company has announced its key operating milestones (KOMs) for Q316 and demonstrated that it is on track to either exceed or meet its full year target on all four measures. It recently completed a 20-for-one share consolidation and bolstered its board by a...
- Moira Daw
Upwardly mobile
Snakk Media (SNK) is a New Zealand-listed facilitator for smart screen advertising. The company is very much in the investment phase of scaling up, expanding its team to support its growing customer base and extending its footprint into South-East Asia. It has now successfully transitioned to the NXT board having raised NZ$2.2m including NZ$0.7m in oversubscriptions. In late November, it reported a substantially reduced H116 net loss of NZ$0.25m – a year-on-year turnaround of NZ$1.94m.
- Moira Daw
On the move
Snakk Media (SNK) is a New Zealand-listed facilitator for smart screen advertising. The company is very much in the investment phase of scaling up, expanding its team to support its growing customer base and extending its footprint into South-East Asia. Snakk is raising up to NZ$2.3m in additional equity at NZ$0.045/share and intends to migrate from the NZX Alternative Market to the NXT board in November 2015.
On the move
Snakk Media (SNK) is a New Zealand-listed facilitator for smart screen advertising. The company is very much in the investment phase of scaling up, expanding its team to support its growing customer base and extending its footprint into South-East Asia. Snakk is raising up to NZ$2.3m in additional equity at NZ$0.045/share and intends to migrate from the NZX Alternative Market to the NXT board in November 2015.
Update: Investing under the bonnet
Snakk’s interims showed revenue growth of 34% (50% ex-currency), with Q2 growth slower than Q1 (12% vs 67%). With Q3 reportedly very busy, we view Q2 as a temporary blip while effort was being focused on assembling the internal infrastructure needed to address the substantial market opportunity in mobile advertising for both brand owners and publishers in Australasia and Asia Pacific. The share price is being over-shadowed by the prospect of further fund-raising to power the next phase of expa...
Outlook: Upward mobility
Snakk Media is rapidly building its revenues in the fast-growing mobile advertising market in Australasia and now Singapore. By using the pick of technologies available globally on a licensed basis, it can continue to expand without the risks of developing its own technology, while offering publishers and advertisers highly targeted (higher-value) views. The group has been investing in its team, including its first CFO, recently recruited from Google, to support a larger and more complex busines...
Update: Singapore gateway
Snakk has published its outline results for the year, with revenues ahead 92% (117% adjusted for currency movements). The group is very much in the investment phase of scaling up, opening new local offices and extending its customer base, with sufficient cash resource to continue the expansion. It is now making early-stage moves into the key Singaporean market. Higher levels of investment mean break even is pushed out, but the potential returns are higher. The shares are priced below global peer...
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