Snakk Expansion Continues with NZ Sales Office Opening

Snakk Expansion Continues with New Zealand Sales Office Opening

Share Purchase Plan applicants may be scaled back

Auckland, 15 May 2013 – Derek Handley, chairman and co-founder of Snakk Media Ltd (NZAX: SNK) announced today the opening of a sales office in New Zealand, appointing a senior local executive to join its growing team in this country. This will be the first sales-focussed role to be based outside of Australia, where the company’s revenue generation activities are currently focussed.

Rowan Spinks, formerly Group Sales Manager with APN News & Media Group, will manage the growing number of New Zealand opportunities the company is facing since listing on the stock exchange a little more than two months ago.

Mr Spinks’ first official day at the Snakk NZ sales office will be Wednesday, 22 May. He will be based at the company’s Auckland headquarters.

Snakk Group CEO Mark Ryan says the New Zealand market is rapidly catching up to the mobile advertising growth experienced in other countries and the time was right to appoint someone of Rowan’s calibre in New Zealand.

“We’ve made a senior appointment to reflect the growth in sales opportunities and to respond to the significant interest Snakk has generated in the New Zealand market since listing here,” says Mr. Ryan.

“We saw a good year-on-year increase in mobile advertising revenue in the last quarter of 2012, and the time is right for Snakk to have a larger presence in New Zealand. This country is also a fantastic place to trial and pilot new initiatives and technologies, and we have some really exciting plans in the works for this.”

Interactive Advertising Bureau figures report that New Zealand mobile advertising was at its highest in 2012, with an annual growth of 176%. The proliferation of smartphones and decreasing mobile data plan costs are cited as some of the reasons underpinning this growth.

Mr. Handley also says the company is pleased with the response to its Share Purchase Plan (SPP) and that shareholders may have their applications scaled back due to healthy demand for the capital raising initiative. The new capital raised will go toward funding further expansion into new regions or sales teams and exploring strategic investment opportunities.

“This is a really exciting time for Snakk,” says Mr. Handley. “The response from investors has been great and a significant number of new investors registered before the Record Date (1 May) to specifically take part in the SPP and benefit from the significant discount to the current market price.”

Registered shareholders have until 5pm on Tuesday May 21 to take part in the SPP to invest up to $15,000 of shares at a fixed price of 12 cents per share. The average trading price of Snakk over the last 30 days prior to the SPP opening was greater than 15c and closed at 15.5c on the 14th of May.

Snakk generates revenue every time an ad uses its networks to appear on a smartphone or tablet’s apps, sites, games and social networks. Revenue comes from both the advertiser paying to use the ad space and the publishers serving the ad to its audiences.

The company’s growth projections are aligned with the Australian market spend on mobile advertising, which analysts predict to reach $AU177 million by 2017 from a standing start just a few years ago. Analyst reports show the money spent advertising on mobile devices is forecast to grow by 46% year-on-year over the next five years in Australia, eclipsing online video advertising to become the fastest growing form of digital ad spend.

About Snakk Media Limited
Snakk enables brands to reach their consumers on smartphones and tablets, delivering engaging ads across a network of mobile websites, applications, and games in a way that is highly targeted, measurable and scalable. The company’s expertise and portfolio of technology aggregates a publisher’s supply of ad space and matches it with an advertiser’s demand. Snakk is deeply committed to building a purpose-driven business that balances commercial outcomes with a higher social purpose.

Follow Snakk for investor and market updates on twitter.com/snakkir

ENDS

© Scoop Media