Snakk Media has reported second quarter revenues of $2.3 million from July to September 2015, representing a 13 percent year-on-year increase.
As revealed to NZX, the company has recorded its first positive EBITDA quarterly result at $50,451, billed as a “significant turnaround” from the previous year’s second quarter, which was negative $1.2m - representing a $1.18 million year-on-year improvement in quarterly EBITDA.
During the second quarter Snakk added $194,451 to its operating cash reserves, a strong outcome when compared to the $1.18 million of operating cash usage in the previous year’s second quarter.
“As we are now in the middle of our capital raising efforts, it is pleasing to share a positive EBITDA result for our second quarter,” says Mark Ryan, CEO, Snakk Media.
“That we have achieved this quarterly result on relatively modest revenue growth is further proof that last financial year's deep investments into our people, processes, technologies and internal systems have made Snakk a far more efficient business today.
“While we are encouraged with the second quarter result, we are not getting too far ahead of ourselves.”
Ryan says the company currently in the midst of its busiest trading quarter and needs to work hard to keep its costs and cash usage low, and its margins strong.
“As importantly we are positioning the company for its next stage of growth, which we see occurring in Asia,” he adds.
“Our recent decision to shift Katie Birch, our new Head of Commercial APAC, into our Singapore office is further evidence of our commitment to growth in Southeast Asia and beyond.
“In what was a particularly busy second quarter we successfully launched Touch Create, our ‘pure mobile creative’ division.
“We held our third AGM and #SnakkLive events, with both very well-received. We also saw our Board undergo further change with the appointment of our new Chair, Peter James. We then signalled our impending capital raise and NXT market migration.”
Ryan says investors also wanting to take part in Snakk’s new Share Offer, which opened October 12 and aims to raise up to $2.3 million, have until October 30 to do so.