Snakk Media lifts Q2 revenues, records first positive EBITDA quarter

AUCKLAND, New Zealand, 21 October 2015 - Snakk Media Limited (NZAX: SNK) is today announcing second quarter revenues of NZD$2,315,404 from July to September 2015, representing a 13% year-on-year increase.

The company has recorded its first positive EBITDA quarterly result at $50,451, a significant turnaround from the previous year’s second quarter, which was negative $1,239,755. This represents a $1,189,324 year-on-year improvement in quarterly EBITDA.

During the second quarter Snakk added $194,451 to its operating cash reserves, a strong outcome when compared to the $1,118,287 of operating cash usage in the previous year’s second quarter.

Comments from Group CEO Mark Ryan:

“As we are now in the middle of our capital raising efforts, it is pleasing to share a positive EBITDA result for our second quarter. That we have achieved this quarterly result on relatively modest revenue growth is further proof that last financial year's deep investments into our people, processes, technologies and internal systems have made Snakk a far more efficient business today.

“While we are encouraged with the second quarter result, we are not getting too far ahead of ourselves. We are currently in the midst of our busiest trading quarter and need to work hard to keep our costs and cash usage low, and our margins strong. As importantly we are positioning the company for its next stage of growth, which we see occurring in Asia. Our recent decision to shift Katie Birch, our new Head of Commercial APAC, into our Singapore office is further evidence of our commitment to growth in Southeast Asia and beyond.

“In what was a particularly busy second quarter we successfully launched Touch Create, our ‘pure mobile creative’ division. We held our third AGM and #SnakkLive events, with both very well-received. We also saw our Board undergo further change with the appointment of our new Chair, Peter James. We then signalled our impending capital raise and NXT market migration.

“Snakk is part of an exciting, competitive and fast-moving industry. I’m confident we have the team and strategy in place that will capitalise on the enormous market opportunities in front of us.”

Second quarter highlights

• Evolving Board: Appointing a new Chair, Australian technology industry veteran Peter James as Independent Non-Executive Chairman, to prepare the company for its next phase of international growth.
   
• Capital and Transparency: Snakk signalled its capital raising plans, as well as its intention to migrate to the new NXT market with strict disclosure rules on operational milestones.
   
• Recognition: Named in the top 10 “Hottest” emerging technology companies list, an index maintained by the Technology Investment Network (TIN).
   
• Touch Create: Launching a new mobile-first creative agency that complements Snakk’s portfolio of audience-targeting, geo-location and native advertising technologies.

Snakk Share Offer open until 30 Oct
Investors wanting to take part in Snakk’s new Share Offer, which opened 12 October and aims to raise up to $NZ2.3m, have until 30 October to do so. See www.snakkoffer.com for the Offer Document and more details.

View the Edison Investment Research report, a comprehensive 14-page review of Snakk Media, the mobile media landscape and the opportunities ahead, and which also forms the opinion that Snakk is potentially trading at a 50% discount to its competitors and peers (research released 8 October 2015).

Interim Report 2016
Snakk’s Interim report will be released in December, and at this time it is expected the company will be listed on the NXT market. The next instalment of Snakk’s CEO video series will be released at the same time as the Interim Report.

ENDS

For media enquiries, please contact:
Julie Landry, +64 21 895 098, Julie.Landry@snakkmedia.com

For investors enquiries, please contact:
Malcolm Lindeque, Company Secretary, +64 21 464 392, investors@snakkmedia.com
www.snk.co.nz, www.twitter.com/snakkmedia

About Snakk Media Ltd
Mobile advertising technology company Snakk Media offers a full suite of mobile creative, content and technology services, empowering the world's leading brands and agencies to accurately reach and engage with consumers on their mobile devices. The company generates revenue every time it successfully targets and delivers an ad across its networks of mobile websites, apps and games. The ads are targeted to ensure the right audiences see them at the right time and place.

Snakk’s business units include Represent Media, a division that sells mobile ad inventory for premium publishers, and Touch Create, a mobile-first creative agency that complements Snakk’s portfolio of audience-targeting, geo-location and native advertising technologies.

Snakk was one of the first public companies in the world that has met the rigorous social and environmental performance standards required to become a certified B Corporation.