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Keep up with the latest press releases and insights from RhythmOne.

blinkx in the black

The world’s most popular video search engine, blinkx, broke into profit in the six months to 30 September - as we anticipated in our summer tip - and beat analyst expectations. Phrases such as “game changing” get over used, but it is difficult to argue with positive cash flow of $1.8m (£1.1m), a doubling of revenues and a swing from a $7.4m loss to a $2m operating profit year on year.

blinkx’s distribution model remains very strong, with a new partnership with set-top-box manufacturer Amino announced alongside these results, adding to the 720 channel partners that include the BBC, ITN and Bloomberg. The company’s bank of over 35m hours of video and audio content generated an average 31.6m daily searches during the six-month period, which probably peaks at over 40m based on broker Daniel Stewart best estimate, making that traffic a targeted goldmine for advertisers. And if chief executive Suranga Chandratillake is right about 500 per cent growth in online advertising over the next four years, it will mean a potential target market worth $11.3bn (£6.99bn) by 2014.

Broker Daniel Stewart is expecting full-year pre-tax profits of $7.6m and EPS of 1.6¢, rising to $22m and 4.7¢, respectively, in 2011-12.