H1 2016 TRADING UPDATE
London, England and San Francisco, CA. — 9 October 2015 — blinkx plc (“blinkx” or “the Company”) today updates the market on its expected performance for the first six months to 30 September 2015 (“H12016” or “the Period”).
As highlighted in the announcement dated 24 August 2015, H12016 has been a period of integration and investment for blinkx. The Company began to rationalize its operations and product portfolio and accelerated investments in its Core strategic capabilities of Mobile, Video and Programmatic Trading. Of note, the Company formally launched its unified programmatic platform, and successfully integrated with a number of dominant programmatic demand and supply partners. Programmatic revenues have continued to grow throughout the Period, in line with management estimates.
Based on unaudited, pre-close estimates, performance for H12016 is anticipated to be in line with expectations, as follows:
- Revenues of approximately $90 million; with over 65% from Core products
- Adjusted* EBITDA loss of approximately ($7 million)
- Cash and cash equivalents of at least $82 million at the end of the Period
Management also has taken steps to manage the Group’s cost structure to reflect the changing revenue and profitability profile of its product mix and, as previously stated, the Company expects a return to profitability over the next 6-12 months, as Core products continue to ramp and offset declines in Non-Core products.
“The Company has made significant progress over the past six months to fuel the growth of its Core Mobile, Video and Programmatic offerings. We launched our unified RhythmOne brand and augmented our capability set with the subsequent launch of our RhythmMax programmatic platform during the Period,” said S. Brian Mukherjee, CEO of blinkx.
The Company will publish its interim results on 17 November 2015.
- 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 affected by the accounting standards associated with the Group’s stock based compensation plan.
For further information please contact:
Analyst and Investor Contact
Financial Media Contacts
Edward Bridges/Charles Palmer
FTI Consulting LLP
(UK) 020 3727 1000
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
blinkx (LSE AIM: BLNX) is an Internet media company that connects consumers and brands through premium content online. Founded in the UK 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 offices worldwide. For more information please visit www.blnx.com.