Tamsyn Parker

Money Editor for NZ Herald

Snakk Media hopes for Xero-style run on NZX

Derek Handley hopes Snakk Media - which will list on the NZAX - will follow in the footsteps of other NZ tech companies like Xero and Diligent. Photo / NZ Herald
Derek Handley hopes Snakk Media - which will list on the NZAX - will follow in the footsteps of other NZ tech companies like Xero and Diligent. Photo / NZ Herald

Kiwi tech entrepreneur Derek Handley is hoping his soon-to-be listed Snakk Media will follow in the footsteps of New Zealand's other technology listings.

Handley this morning revealed he will list the new business on the NZAX on March 6- making it the first New Zealand stock market listing this year.

Handley said he wanted to follow in the footsteps of accounting software firm Xero and boardroom information provider Diligent in providing a high growth opportunity for investors. Xero and Diligent were the best performing stocks on New Zealand's share market last year after takeover target Fisher and Paykel Appliances.

"We are at the small end of town today but hope to be at the big end in the future."

Snakk Media, which helps companies get their advertising in front of smartphone and tablet computer users raised $750,000 from investors last year and Handley said the listing would help it continue to raise small amounts of capital as needed as well as getting new shareholders on board.

See its investor website here.

The business has also appointed Jucy rentals co-founder Tim Alpe and Telecom general manager of market strategy Michelle Kong as directors joining Handley on the board.

Snakk posted a 48 per cent gain in sales to $1.22 million in the six months ended September 30. The mobile ad company made a net loss of $610,000 in the year ended March 31 last year on sales of $1.99 million.

Handley said Snakk's growth strategy for the next 12 months would focus on grabbing Australian market share, where the total spend on mobile advertising is projected to reach A$177 million by 2017.

Handley said his goal was for the company to grow in line with Australia's growth. The company is also considering whether to enter the New Zealand market and eyeing expansion into Asian markets like India and Indonesia.

The media start-up is Handley's second foray into the mobile space.

His first effort, mobile marketing company The Hyperfactory, was scooped up by US-based Meredith Corp in 2010 for a sum thought to be over US$20 million ($24.5 million).

Handley didn't rule out Snakk Media being an acquisition target in the future.

"In this sector over the coming years there will be a huge amount of mergers and acquisition as people jockey to dominate. Anything to do with mobile advertising is going to have a lot of activity."

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