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blinkx reports soaring profits from video ads

Online video search engine blinkx reported booming demand for online video yesterday, which helped to boost revenues 36 per cent during the six months to 30 September.

blinkx, whose shares are already up more than 160 per cent this year, reported adjusted profit growth of 93 per cent to £15.1m, beating analyst expectations, on revenue of £111.5m.

“We are thrilled with the numbers our team have been able to put out… we find our business in a booming segment of growth,” chief executive Subhransu Mukherjee told City A.M.

One of the areas of intense growth at blinkx is its mobile advertising business, although over 90 per cent of the company’s advertising revenue still comes from traditional desktop advertising.

“Our mobile advertising business has grown from nothing into a several-million-dollar business in the last 12 months,” said Mukherjee, who did not rule out acquisitions as an option to further expand this side of the business.

In response to the results, analyst Paul Richards at Numis raised his full-year revenue forecasts for blinkx to £150m from £141m.

“In light of the group’s strong execution… we continue to view our forecasts as conservative,” said Richards in a note.

Shares in blinkx rose 17.1 per cent yesterday.