Wider loss for Snakk Media
Smartphone advertising company Snakk Media, which is listed on the junior NZAX exchange, has reported a big jump in revenues but a higher interim net loss.
The Auckland company reported a $837,000 net loss for the six months to September, up 16.5 per cent on last year.
Revenues, most of which are generated in Australia, jumped by 147 per cent to just over $3 million.
Snakk develops apps, mobile websites and games that run on smartphones to promote its clients, and earns a fee from them when they are used.
Despite the loss, the company is well-funded, ending the period with $6.6m in cash and equivalents. It raised $6.5m from 1200 shareholders in March by issuing shares at 12 cents a share.
The company's shares were trading at 14.6c after interim result was announced this morning, valuing the firm at $38.3m.
Chief executive Mark Ryan said that in the past, companies had only tended to spend-up on smartphone advertising in the run-up to Christmas, but demand for Snakk's services was now getting less seasonal.
"Now it's an 'always on' media activity."
Snakk intended to establish itself as the dominant player in its market in New Zealand and expand into a new overseas market by the end of its financial year, he said, with Singapore a possibility.
"The company is also continuing to evaluate a range of strategic investment opportunities to differentiate and scale its operations," he said.
It was losing money as it had to hire staff "ahead of the revenue curve", Ryan said.
Snakk employs about 24 staff.