TRADING UPDATE, CAPITAL MARKETS DAY AND RESPONSE TO RECENT SHARE PRICE VOLATILITY
London, England and San Francisco, CA – 31 March 2014 — blinkx plc (“blinkx” or the “Company”), today provides a trading update for the financial year ending 31 March 2014 (FY2014). The Company expects to report revenues in the range of $245 to $247 million and Adjusted EBITDA in the range of $37 to $39 million, in line with market consensus. The company plans to release the results for Financial Year 2014 on 6 May 2014.
As announced on 4 March 2014, today the Company will host a Capital Markets Day for Institutional Investors and Analysts in London. This will include presentations by both the Company and representatives from the online advertising ecosystem, followed by a panel discussion. The presentations will be recorded and made available on the investor relations section of the Company’s website (www.blinkx.com/corporate/investors/presentations) in due course.
blinkx today also published a detailed response to a blog post dated 28 January, 2014 (“the blog”) that questioned the Company’s business model and practices. blinkx strongly refuted the assertions made in the blog at the time it was published. Since then, the Company has completed a thorough internal and external review of the assertions made in the blog, detailed in the response, which has been posted on the Company’s website (www.blinkx.com/corporate/blog).
“We are pleased with the performance of the business in FY2014, particularly with the successful integration of Rhythm in mobile video, despite the obvious distractions in the last quarter of the financial year,” said S. Brian Mukherjee, CEO of blinkx. “We diverted considerable time, energy and resources to conduct comprehensive internal and external diligence to uncover and address the inaccurate and misleading assertions made in the blog. However, this work has provided us with additional assurance that in a fast changing market, we are either in line with or leading industry standards – something that is important not just for us, but all our commercial stakeholders. We do not intend to engage in any further debate on this topic. Instead, we look forward to our Capital Markets Day, where we plan to showcase the breadth and depth of our product line and commercial partners, as we focus our undivided attention on growth opportunities for the Company.”
For further information please contact:
Analyst and Investor Contact
(US) 650 731 2431
Financial Media Contacts
Edward Bridges/Charles Palmer
(UK) 020 7831 3113
NOMAD and Joint Broker for blinkx plc
Charles Lytle/Christopher Wren
Citigroup Global Markets Limited
(UK) 020 7986 9756
Joint Broker for blinkx plc
Lorna Tilbian/Mark Lander/Nick Westlake
Numis Securities Limited
(UK) 020 7260 1000
•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 and amortization, stock based compensation expense, 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, how the results are taxed in various jurisdictions, or how the results are effected by the accounting standards associated with the Corporation’s stock based compensation plan.
blinkx (LSE AIM: BLNX) is an Internet media company that connects consumers and brands through premium content online. Founded in the United Kingdom in 2004, blinkx pioneered Internet Video Search using its patented COncept Recognition Engine (CORE). This technology leverages speech recognition, text and image analysis to deeply understand the meaning and context of video content to generate improved search relevancy for consumers and a brand safe environment for advertisers. Today, blinkx is a broad digital media technology, distribution and monetization platform that connects consumers, advertisers and content across four screens. Through its partnerships with hundreds of media companies, including ABC, NBC, Conde Nast, Reuters and Bloomberg, blinkx has indexed and search enabled millions of hours of video content. blinkx powers video search, discovery or monetization on thousands of online properties including Lycos, ABC, CBS and Fox Sports. blinkx is headquartered in San Francisco, California with 15 offices worldwide. For more information please visit www.blinkx.com.