Ann: QUARTER: SNK: Snakk announces record-breaking Q3 sales

• Release Date: 25/02/15 08:32
• Summary: QUARTER: SNK: Snakk announces record-breaking Q3 sales
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25/02/2015 08:32
QUARTER
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REL: 0832 HRS Snakk Media Limited

QUARTER: SNK: Snakk announces record-breaking Q3 sales

SNK: NZX MARKET UPDATE
25 February 2015

Snakk announces record-breaking Q3 sales
47% year-on-year sales growth; two months with $1m-plus sales

AUCKLAND, New Zealand, 25 February 2015 - Snakk Media Ltd., (NZAX: SNK) is
announcing its third quarter unaudited sales of $3,329,944 from 1 October to
31 Dec 2014, representing an increase of 47% on the previous year's third
quarter sales of $2,258,989.

Sales generated over this reporting quarter equate to almost half of the
company's full year result in 2014, again at 47%, when the company reported
revenue of $7,029,916 from 1 April 2013 to 31 March 2014.

Third quarter sales include a one-time adjustment of $684,434, resulting in
net quarterly revenues of $2,645,510. This accrual accounts for volume rebate
trading agreements with global agency network partners, dating back to
negotiations that commenced in early 2014, and payable retrospectively as a
result of successfully finalising terms late in the third quarter.

"This is the first time Snakk has secured partnerships of such potential
revenue-generating size and scale, which cover Australia, New Zealand and
Southeast Asia," says Snakk Group CEO Mark Ryan, "We're very pleased to have
secured a 'seat at the table' with these global agency network groups."

Key Highlights (1 October - 31 December 2014):
Notable milestones achieved during this reporting quarter include:

Financials:
- The largest sales quarter in the company's history
- Two consecutive months exceeding $1m in sales (November and December) -
with December sales of almost $1.5m achieved
- More than 47% of last financial year's gross revenues generated in this
quarter

Technology:
- Launching market-first technology in the Asia Pacific region, TV Sync with
a campaign for Peugeot, which synchronised TV ads and mobile ads, in response
to the large number of consumers using smartphones and tablets while watching
TV
- Signing a preferred partnership agreement with Nativo, making its native
advertising platform available in Australia and New Zealand

Recognition:
- Earning a spot on the Deloitte Asia Pacific Technology Fast 500 and the New
Zealand Fast 50 Index for the second year running

Snakk Group CEO Mark Ryan comments:

"The final three months of the calendar year have traditionally been our
strongest, and it's pleasing to report that this is our largest sales quarter
ever. Reaching agreement on several significant volume-driven spending deals
with major media agency groups contributed to the lift in performance.

"We have also seen a pronounced jump in revenue from our Southeast Asia team
in Singapore. Early in the quarter we invested in more sales staff in this
market, and after a slower than expected start we're now seeing sales volumes
increasing steadily. We're winning business from regional agencies outside of
Singapore, running campaigns for brands such as Visa, Ikea, McDonalds and
Airbnb, in markets including Indonesia, Hong Kong and Thailand.

"While we are pleased with the quarter's performance, business growth remains
our priority. Our Australian and New Zealand markets have healthy potential;
however, our burgeoning Asian business and the opportunities in that region
are the future of the business. We will continue to introduce more
partnerships and technology innovations to our product portfolio, a strategy
that has kept us a step ahead of the competition. While the company has
$2.86m in cash and cash equivalents as at December 2014, we intend on raising
more funds in the next few months to allow us to continue to significantly
scale up the company."

Mobile growth stats
The spend on mobile advertising continues to grow, with mobile ads continuing
to fuel the growth of popular social networks and smartphone apps. Singapore,
Hong Kong and Australia are topping the global charts, passing the US for
having the highest percentage of active mobile social media users in the
world, at 59%, 58%, and 51% respectively .

Mobile advertising is reported to be the key driver of advertising growth
around the world, with predictions that mobile ads will account for 22.3% of
all advertising spending worldwide by in the next three years, increasing
from USD$64bn in 2015 to over USD$158bn in 2018.

ENDS

For media enquiries, please contact:
Julie Landry, 021 895 098, [email protected]
For investors enquiries, please contact:
Malcolm Lindeque, Company Secretary, 021 464 392, [email protected]
www.snk.co.nz, www.twitter.com/snakkmedia

About Snakk Media Ltd
NZAX-listed Snakk Media helps brands find and reach consumers using apps,
games and social media on their smartphones, tablets and other smart screens.
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 is 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.
End CA:00261088 For:SNK    Type:QUARTER    Time:2015-02-25 08:32:34