Ann: QUARTER: SNK: Snakk grows Q1 revenues by 15%, reduces cash use by 83%

• Release Date: 03/09/15 08:35
• Summary: QUARTER: SNK: Snakk grows Q1 revenues by 15%, reduces cash use by 83%
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03/09/2015 08:35
QUARTER
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REL: 0835 HRS Snakk Media Limited

QUARTER: SNK: Snakk grows Q1 revenues by 15%, reduces cash use by 83%

SNK: MARKET UPDATE
3 September 2015

Snakk's first quarter: year-on-year gross margins rise, cash usage reduced by
83%

AUCKLAND, New Zealand, 3 September 2015 - Snakk Media Limited (NZAX: SNK) is
today announcing first quarter unaudited revenues of NZD$2,267,711 from April
to June 2015, representing a 15% year-on-year increase.

Gross margins continued to rise in the quarter, increasing over 70%
year-on-year and following the trend set in the second half of the previous
financial year. On a year-on-year basis the rate of cash usage was
significantly less, down by approximately $715k compared to the first quarter
of last financial year and totalling approximately $146k for the first
quarter; the lowest amount in the company's history.

Snakk Group CEO Mark Ryan says that while trading in the first half of the
year is traditionally slower than the second half, there has been a focus on
cost management, product pricing strategies and margin control in order to
deliver a strong commercial performance for the financial year. With revenues
of circa $10m per year, Snakk has now reached a point of scale where each
dollar of revenue is used far more efficiently than when it was a smaller
company.

Comments from Snakk Group CEO Mark Ryan
Considerable energy has been spent for much of 2015 to ensure we are ready to
capitalise on the opportunities in the second half of the trading year, which
is our peak trading period. We finished the second half of last financial
year strongly, steadily improving key areas of our business and it's pleasing
to see this continue into this quarter. After committing significant
investments into our people, technology and internal systems over 12 months
ago to drive efficiencies and scale, our quarterly cash usage was reduced by
over 80% on a year-on-year basis.

We are still a young company and Snakk operates in a particularly
fast-evolving industry which grows more competitive every year. In simple
terms we need to continue to invest into scaling our capabilities, growing
our revenue, protecting our margins and maintaining access to capital. When
Snakk listed in 2013 we were a start-up with $2m in revenue, and very little
infrastructure in place to support efficient growth. With revenues of circa
$10m we are now seeing the benefits of past investment into our business.

While the operational performance of the business is much improved, we
certainly require a greater focus on top-line revenue growth across our
Australian, New Zealand and Southeast Asian markets, particularly in our peak
trading periods. I'm confident we have the team in place and a strategy that
will capitalise on the enormous opportunities in front of us.

More CEO comments in video
Further commentary from Mr Ryan on Snakk's first financial quarter and on
what's coming up for the company can be viewed at
http://investors.snakkmedia.com/video/. These videos are part of a regular
series intended to complement the company's written shareholder updates,
where the CEO expands on the information distributed today.

First quarter highlights

? Evolving board: Adding a new and fourth company director, with Martin
Riegel appointed to the board in June, as part of the company's strategy to
continue to evolve the board over the coming year. As mentioned in the Annual
Report, Snakk intends to bring on new board talent with the industry
experience and aspirations to build upon Snakk's existing markets and its
entry into important new markets in Asia.

? Technology: Launching TV Sync in New Zealand, a unique market offering
developed by Snakk that dynamically matches mobile ads with TV commercials.

? Represent Media: Several popular publishers signing Snakk's Represent Media
as their mobile advertising sales agency, including Australia's Carsguide,
Concrete Playground and Rdio Music Service, with Stay at Home Mum also
utilising Snakk's native advertising technology platform.

? International Recognition: Named "Official Honoree" in the international
2015 Webby Awards for Snakk's creative work on a leading global game
franchise title, Assassin's Creed by Ubisoft. The company received further
global recognition in April for being "Best for Workers", with Snakk earning
a top spot for creating some of the highest quality jobs for the second year
running.

2015 AGM and #SnakkLive Reminder - 16 Sept, 2.30pm
A reminder to shareholders that the company's Annual General Meeting will be
held at 2.30pm on 16 September at the Spark Lab, level 4 in the Seafarers
Building in Britomart (52 Tyler Street).

Later that evening, at 5.30pm, the company will host an intimate gathering
for a number of our customers and industry colleagues. Innovative brands such
as BurgerFuel, Samsung, Uber and Villainesse will share their insights on how
they are navigating through the rapidly evolving media landscape, what
they've learned along the way and what they plan to do next. Numbers are
strictly limited.

To register for the AGM and/or #SnakkLive please follow this link;
https://snakk-media-agm-2015.lilregie.com/

ENDS

For media enquiries, please contact:
Julie Landry, +64 21 895 098, [email protected]

For investors enquiries, please contact:
Malcolm Lindeque, Company Secretary, +64 21 464 392, [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:00269574 For:SNK    Type:QUARTER    Time:2015-09-03 08:35:50