blinkx Expects To Beat Expectations With Big Revenue Jump
Online video search index and advertising firm blinkx says it expects to blow away analysts’ expectations by posting a much stronger half-year operating profit.
It says operating profit, for the six months ending September 30, will exceed the consensus $630,000 and hit over $1 million, because will revenue have increased 100 percent to $27 million on a significant increase in the number of video ads and searches served.
The company’s cash has grown from $2 million to $17 million since the end of the financial year on March 31.
blinkx’s revenue has always been growing steadily, but expenses have been holding it back… full-year income grew 142 percent to $33.6 million in the year to March 31. But London-listed blinkx still recorded an $8.5 million loss (only about $300,000 better than last year) because expenses grew 15 percent to $10.6 million.
But in the second half of last year, blinkx, led by CEO Suranga Chandratillake, slowed its expense outgoings significantly, and saw revenue 60 percent up from the first half.
The firm has over 720 content providers and, having amassed those content licenses, could be poised for greater things when web video moves on to connected TV sets.