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blinkx Expects to Report Full Year Revenue and Profits Ahead of Expectations

blinkx plc
Trading Update

SAN FRANCISCO, CALIF. – April 24, 2013 — blinkx plc (LSE AIM: BLNX) today provides a brief trading update for the financial year ended 31 March, 2013.

 

Highlights

• Revenues for the year expected to be approximately $196 million, ahead of the previously upgraded range of $180 to $185 million, an increase of 71% from the year ended 31 March, 2012
• Adjusted EBITDA is expected to be approximately $26 million, an increase of over 200% from $12.8 million for the year ended March 31, 2012
• Profit before tax, including one-time costs and amortization of purchased intangibles, is expected to be approximately $15 million, an increase from $1.9 million for the year ended March 31, 2012
• Basic earnings per share is expected to be approximately 4.4 cents, a 400% increase from 1.1 cents, for the year ended March 31, 2012
• Net cash at year-end is expected to be approximately $55 million an increase from $38.4 million for the year ended March 31, 2012

The outperformance during the financial year can be attributed to:

• Strong growth in the broader online advertising industry in general and the video advertising sector in particular
• An increase in advertising spend driven by two major events this financial year, namely the Summer Olympics and the US presidential year elections, which delivered a one-time boost to revenue
• The well-executed integrations of the acquisitions which have allowed the Group to expand the scale, scope and reach of blinkx’s offerings

S. Brian Mukherjee, CEO of blinkx, commented, “This has been an exceptional year for blinkx. Widespread broadband adoption, proliferation of connected devices and the accelerating consumption of video content online continue to fuel the growth of the industry.  This sector momentum, along with one-time events, strengthening fundamentals of the business and the effective integration of the acquisitions have been critical to our success and growth this year.”

The Company expects to announce its audited financial results for the financial year ended 31 March, 2013 on 13 May, 2013.

Enquiries

blinkx plc  +44 (0)20 8906 6857
S. Brian Mukherjee, CEO   +1 (415) 655-1450
Frank Pao, Company Secretary   +1 (415) 655 1450

Citigroup Global Markets Ltd  +44 (0)20 7986 4000
(NOMAD and Broker for blinkx, plc)
Charles Lytle
Christopher Wren


FTI Consulting  +44 (0)20 7831 3113
Edward Bridges
Charlie Palmer
Sophie McMillan
Roger Newby

The above represents management’s views and opinions on preliminary 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 only. Information regarding preliminary 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 will be published in May, 2013. All results, including those set forth above, are subject to financial review by blinkx’s independent auditors and are considered preliminary and subject to change until publication of any such review or audit.

About blinkx

blinkx (LSE AIM: BLNX) is the Internet Media platform powered by CORE, the world’s most advanced video engine. blinkx connects online viewers with content distributors and monetizes those interactions through advertising. Through its flagship site, blinkx.com, the company pioneered video search on the Internet and today has an index of over 35 million hours of searchable video and more than 800 media partnerships. In addition, blinkx powers video search for many of the world’s most frequented sites, including Ask.com and AOL. blinkx continues to develop innovative approaches to digital video distribution, and has expanded into mobile video and Connected TV through partnerships with Samsung, Sony, Roku and other industry leaders.  blinkx is headquartered in San Francisco, CA and London, England. More information is available at www.blinkx.com.

Non-GAAP Measures

This press release contains references to adjusted EBITDA.  This financial measure is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measures used by blinkx may not be comparable to similar measures used by other companies.

Adjusted EBITDA is defined as Profit for the year attributable to equity holders of the parent before interest, taxes, depreciation, amortization, and acquisition and exceptional costs. Management believes that this measure is a useful supplemental metric as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how the results are impacted by one time exceptional charges or how the results are taxed in various jurisdictions.

Forward-looking Statements

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’s actual results may differ materially from the plans, goals, and expectations set forth in these 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 FCA, 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.