Big revenue jump for Snakk Media
New NZX-listing Snakk Media has reported an unaudited revenue increase of 83 per cent for the year to March on the back of a growing mobile advertising market and winning "shoot-outs"' against competitors.
Snakk is due to announce its full financial result around June 20, but opted to release its top-line revenue figure early.
The company listed on the NZAX in March without issuing new shares. Its share price is now sitting at 14 cents after it told the market today revenue had reached $3.6m for the year to March, up from $1.9m in the 2012 year.
Snakk operates in the fast growing smartphone and tablet market, essentially serving targeted advertising to mobile internet users on behalf of brands and media buyers.
The company said its fourth quarter revenue from January to March of $984,643 was almost double that turned over during the same period last year.
A 2012 analyst report by Frost and Sullivan predicted ad spend on mobile devices in Australia would grow by 46 per cent year on year, however Snakk co-founder and chairman Derek Handley said he was pleased the company was ahead of that pace.
He said Snakk would continue to release quarterly revenue figures to the market because he believed they were the most important measure of the young company's success.
"We're focused mainly on the revenue growth of the business so that's one of the key performance indicators we want to share with the market as soon as we're in a position to," Handley said.
Last year the company made an overall loss of $610,301 on operating revenue of $1.9m
Snakk chief executive Mark Ryan said the year's revenue growth resulted from both increasing mobile spending from existing customers and media agencies as well as expansion into new territories such as the Australian state of Victoria and New Zealand.
He said Snakk's home turf in Sydney was very competitive but the company was winning "shoot-out style" pitches for agency budgets based on Snakk's audience aggregation model.
The mobile-device advertising market was growing as a whole as more consumers became active on their smartphones and tablets.
"There's definitely new mobile money coming in and we saw this with some of our quarterly figures where quarters that had traditionally been a bit soft - like post-Christmas - this year that was a fantastic quarter for us," Ryan said.
"We're seeing mobile advertising moving from a seasonal, special period activity to a more mainstream [activity]. It's on the media plans and it has to happen."
Ryan said $6.5m in funds raised from a recent Share Purchase Plan put Snakk in a position to "look at opportunities and potential acquisitions that will allow us to scale the business beyond the start-up phase and grab a larger share of the exploding mobile advertising market".
Handley also announced Snakk had been approved for B Corporation accreditation after submitting an application to join the global community of almost 700 environmentally and socially conscious businesses as tested and designated by non-profit organisation B Lab.