Ann: S/HOLDER: SNK: Snakk Shareholder Update - Asian Ops Expand

• Release Date: 11/05/15 08:30
• Summary: S/HOLDER: SNK: Snakk Shareholder Update - Asian Ops Expand
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11/05/2015 08:30
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S/HOLDER: SNK: Snakk Shareholder Update - Asian Ops Expand

SNK: NZX MARKET UPDATE
Shareholder Update - May 2015

Dear Shareholders,

It's May, and we're almost halfway through 2015. Our last company update was
in February when we released our Q3 revenues, and we'd like to share some
highlights from this calendar year.

Q4 overview (January - March 2015)
The management team is pleased with the company's performance during this
time. It's been an exciting quarter, with top tier brands including ANZ,
Google, Disney, Lion Nathan, Fonterra, ASB and Spark continuing to choose
Snakk's unique audience-targeting technologies and other mobile advertising
innovations to deliver highly-relevant advertising campaigns to smartphone
and tablet users.

Fourth quarter revenues are now with our auditors, and will be available when
we report our End of Year result in June. Our continued focus on operational
efficiencies, and the benefits of scale as we continue to grow, have helped
us drive an increasingly healthy gross margin. Last year's million
dollar-plus months have also strengthened our balance sheet considerably, and
as a result we have seen a reduced rate of cash usage.

We've also successfully secured a $1.3m rolling debt facility on favourable
terms, and anticipate this facility can scale in size as the business grows.
With $2m currently in the bank, we feel we have sufficient reserves to get us
through the calendar year.

Capital raising
In our February update, we signalled that Snakk intends to raise funds in the
coming months. Snakk has steadily invested over the long-term to put the
right people, systems and technology in place to help us scale the business
to a point where our operational costs are levelling, while our revenue
continues to increase.

We are now seeking capital to continue building a significant business in
Australia, New Zealand and most importantly into Southeast Asia, where we
will continue to take advantage of the enormous market opportunities for
mobile advertising. We will fund this growth through a variety of avenues,
and more information will be forthcoming as we finalise our plans for capital
raising.

Asian expansion - update
Our Asian operations are now staffed by a team of three, signalling our
commitment to this market. To meet the growing demand in Asia, where there
are tens of millions of smartphone users, we are looking to employ more staff
in markets including Malaysia, the Philippines and Indonesia.

Still within its first year of operation, the Snakk team in Singapore is
currently running campaigns for global brands as diverse as Unilever's Paddle
Pop and Lux, Nandos, Visa, Ikea, McDonald's and Airbnb - in markets including
Singapore, Indonesia, Hong Kong and Thailand. Some of these campaigns have
extended further into Korea, Japan, Vietnam, Malaysia, India, Macau, Brazil,
Mexico, Germany and the United Arab Emirates. It's an exciting time for Snakk
as we unlock a world of opportunity outside of Australia and New Zealand.

TV Sync
Demand for TV Sync has been extremely high since we developed and launched
the technology in Australia last November. This regional 'first-to-market'
offering allows advertisers to match TV commercials with delivery of their
mobile ads, all in real-time. The mobile ads are seen in the mobile social
media newsfeeds of TV viewers within seconds of the commercial being aired.
With more than half of TV audiences viewing their mobile devices while
watching television, we are well-placed to take advantage of this trend.

Since launching TV Sync we've delivered a number of successful campaigns in
Australia with major brands including Peugeot, NAB, Nestle/Uncle Tobys, TAB,
Holden and Citibank.

We expect to launch TV Sync in New Zealand with its first campaign in the
near future. New Zealand country manager Niko Toluono, who joined us
mid-March from Fairfax, has had strong interest from local brands around TV
Sync and has a number of exciting campaigns in the pipeline.

Represent Media
Represent Media is continuing to add new, well-known titles to its stable of
premium mobile publishers. Earlier this year we signed media publishing giant
CBS Interactive (CBSi) to sell the premium ad inventory available on their
Asian mobile titles across 12 countries. These titles include ZDNet, Cnet,
Chow, Gamespot, Tech Republic, Metrolyrics, Giant Bomb, Metacritic and
TV.com.

During the same month, the Represent team signed one of Australia's largest
independent publishers, Conversant Media, best known for The Roar,
Australia's leading sports opinion site; Lost At E Minor a global pop culture
site; and Techly a consumer-tech lifestyle site.

Momentum continues to build for this division of Snakk as more premium
publishers choose Represent Media to sell their mobile inventory across
Australia, New Zealand and Southeast Asia.

Awards & Recognition
Snakk was recently named an 'Official Honoree' in the prestigious 2015 Webby
Awards for its campaign creative for one of the world's most popular video
game franchises, 'Assassin's Creed Unity' by Ubisoft. The work was recognised
in the Mobile Advertising section of the Media & Advertising category, with
Snakk one of only five Official Honorees in that section.

With more than 13,000 global entries overall, the Webbys are the leading
international awards honoring excellence on the Internet since 1995. The work
can be seen here: http://thissite.mobi/webbies/assassins/.

In April we earned a spot on the global "Best for Workers" list for the
second year running, being recognised for creating some of the highest
quality jobs and fostering an environment that allows our people to be
successful, happy and healthy at work. Being a great place to work in a
high-growth, fast-moving industry helps us attract great talent and
contributes to our performance.

2015 dates to note
Snakk is preparing to announce its End of Year results on Friday 12 June.
We've also confirmed a date for the Annual General Meeting, to be held on the
afternoon of 16 September in Auckland. More details on time and venue to
follow.

Mobile ad spend continues to grow
According to a report last month on the 2015 mobile landscape by the
Interactive Advertising Bureau of Australia , mobile ad spend and the use of
mobile advertising is expanding, particularly with the growth of new rich
media formats that Snakk specialises in. The report reveals 41% of the
Australian market now see mobile advertising as a significant part of their
marketing mix and expect to use mobile in half of their campaigns.

eMarketer's ad spend data  shows that while mobile internet ad spend is set
to increase by 63% in Australia, from $US852m in 2014 to $1.36b in 2015;
expected growth in Asia is even more impressive. The amount spent on mobile
internet ads is expected to triple in Indonesia, and double in countries like
India and China from 2014 to 2015.

There is no question there are exciting times ahead, with enormous potential
for Snakk. While the share price is not something we can control, we don't
believe it reflects the consistent positive progress the company has achieved
since it was publicly listed. We work in the fastest-growing media sector in
history, and we are continually and successfully evolving the company to meet
this pace of change. The Board and myself remain extremely positive, and are
focussed on the remainder of 2015 and the company's long-term prospects in
Australia, New Zealand and into Asia.

We thank you once again for your support.

Mark

Mark Ryan
Group CEO
Snakk Media

ENDS

About Snakk Media Limited
www.snk.co.nz, www.snakkmedia.com,
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.

Contacts:
Media:
Julie Landry, 021 895 098, [email protected]

Investors:
Malcolm Lindeque, Company Secretary, 021 464 392, [email protected],
www.snk.co.nz,
End CA:00264133 For:SNK    Type:S/HOLDER   Time:2015-05-11 08:30:04