Trading Update 11-10-10
(“blinkx” or “the Company”)
blinkx Expects to Report First Half Revenue of approximately $27M, An Increase of around 100%
Schedules First Half Results and Conference Call for 9 November 2010
SAN FRANCISCO, CALIF. — Oct 11, 2010 — blinkx, the world’s largest and most advanced video search engine, today announces a trading update for the 6 months ended 30 September 2010. The Company expects to report revenues for the first half of approximately $27m, an increase of around 100% from the same period last year. The number of video searches and ads served also grew significantly. With revenues growing strongly, the Company expects to report an operating profit above $1m for the first half that will be ahead of current analyst consensus of $0.63m for the period. Since the year ended 31 March 2010 the Company’s cash has increased by approximately $2m to around $17m, reflecting the positive cash profile of the group.
Suranga Chandratillake, founder and CEO, blinkx, commented, “Video advertising is the fastest-growing format online - eMarketer estimates continued growth in spending of almost 500% over the next four years to $11.3 billion in 2014. This powerful momentum underscores the vitality of our business model. Over the last six months, blinkx has continued to experience strong user demand, with ever increasing numbers of searches placing blinkx.com in the Quantcast.com Top 100 sites. We also continue to exploit new applications and platforms that represent additional markets for our existing search engine and content partnerships. We expect to further accelerate the growth of our business and given our market position remain confident of the outlook.”
-Premium content partnerships announced during the half include deals with the BBC, AccuWeather and Internet Video Archive
-Strategic entry-points established in the mobile market, including the launch of m.blinkx.com and distribution deals with Evri, Mobica, and Samsung which brought blinkx to iPhone and Android devices
-Significant progress achieved in desktop distribution and the proliferation of our partnership with ITN, and a joint initiative with Microsoft to release blinkx-powered Accelerators for Internet Explorer 8
-blinkx continued its beta release programme for Cheep, the transaction hijacker product, including a successful closed test with external users and bloggers
The company expects to announce its results for the 6 months to 30 September 2010 on 9 November 2010.
The above represent preliminary summary results based on blinkx’s expectations at the time of publication of this announcement. These results may be subject to revision as part of the analysis process and, at this stage, should be taken as indicative estimates only. Preliminary summary results are provided as an aid to investors based on information available at the time of publication. Full results, including income statement, balance sheet, statement of changes in equity, cash flow statement and related notes and other segmental information will be published in due course, which is expected to be on 09 November 2010. All results, including those set forth above, are subject to quarterly financial review by blinkx’s independent auditors, and are considered preliminary and subject to change until publication of any such review or audit.
blinkx plc +44 (0)1223 488500
Suranga Chandratillake, Founder and CEO +1 (415) 655-1450
Frances Smith, Company Secretary
Citigroup Global Markets Ltd +44 (0)207 986 4000
(NOMAD and Broker for blinkx plc)
Financial Dynamics +44 (0)20 7831 3113
blinkx plc (LSE AIM: BLNX) is the world’s largest and most advanced video search engine. Today, blinkx has indexed at least 35 million hours of audio, video, viral and TV content, and made it fully searchable and available on demand. blinkx’s founders set out to solve a significant challenge – as TV and user-generated content on the Web explode, keyword-based search technologies only scratch the surface. blinkx’s patented search technologies listen to – and even see – the Web, helping users enjoy a breadth and accuracy of search results not available elsewhere. In addition, blinkx powers the video search for many of the world’s most frequented sites. blinkx is based in San Francisco and London. More information is available at www.blinkx.com.
This announcement has been issued by and is the sole responsibility of blinkx plc (the “Company”). Citgroup Global Markets U.K. Equity Limited (“Citi”), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for the Company and for no-one else in relation to this announcement, and will not be responsible to any other person for providing the protections afforded to its clients nor for providing advice in connection with the announcement. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by the Company, Citi or by any of their respective affiliates or agents as to or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.
This announcement contains (or may contain) certain forward-looking statements with respect to certain of blinkx plans and its current goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. blinkx cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding blinkx future financial position, income growth, impairment charges, business strategy, projected levels of growth in its markets, projected costs, estimates of capital expenditure, and plans and objectives for future operations of blinkx and other statements that are not historical fact.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic and global economic and business conditions, the effects of continued volatility in credit markets, market-related risks such as changes in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards (“IFRS”) applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of pending and future litigation, the success of future acquisitions and other strategic transactions and the impact of competition — a number of which factors are beyond blinkx control. As a result, blinkx actual future results may differ materially from the plans, goals, and expectations set forth in blinkx forward-looking statements. Any forward-looking statements made herein by or on behalf of blinkx speak only as of the date they are made. Except as required by the FSA, AIM or applicable law, blinkx expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in blinkx expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.