News Column

Blinkx suffers as investors lose faith in the battle-scarred firm

May 7, 2014

OLIVER SMITH



BLINKX, the online video advertising firm whose share price plummeted in January on the back of a critical blog post, saw its shares fall another 8.38 per cent yesterday to 84.75p as retail investors abandoned the firm following disappointing results.


Despite Blinkx's revenue jumping 25 per cent in the past year to $247m (147.56m) with adjusted profits up 30 per cent to $31.9m, much of the market's focus was on a 32 per cent fall in basic earnings per share to 3.23p.


"This has been an important year for Blinkx and we are delighted to announce another strong performance, in which record revenues and profits were achieved despite the absence of the extraordinary growth drivers of the prior year," said chief executive Brian Mukherjee, who also announced the acquisition of Lyfe, a mobile advertising firm, for an undisclosed cash sum.


Numis analyst Paul Richards said he expected Lyfe to cost Blinkx around 1.17m in 2015 and trimmed his profits estimate from 26.5m to 25.3m on the news.


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Source: City A.M. (UK)