Shares in blinkx (BLNX) slumped 8 per cent after the video-platform owner revealed that operating profits grew only 7 per cent to $17.1m (£10.1m) over ther year to March, following a near 10-fold rise in the previous year.
Although the Autonomy spin-off added partners such as ABC and Condé Nast to its 1,100-strong content and syndication network last year, the absence of the Olympics and US presidential elections cut sales by $20m, estimates chief executive Brian Mukherjee. A blog post by a Harvard professor in January that questioned its revenue structure also scared off advertisers - but sentiment is already recovering, he says.
The group also made various investments. It bought Rhythm NewMedia to help replicate its platform across smartphones and tablets, and acquired Lyfe Mobile - which collects data from over 600m mobile users worldwide - to offer targeted advertising to marketers. It also launched a video-player application, Skyrocket, and introduced new technology to help website owners quickly integrate videos into their websites and measure their impact.
Broker Numis downgraded its forecasts to reflect the loss-making Lyfe acquisition, announced alongside these results. It now expects cash profits of $43m this year, giving EPS of 6.6¢.
| BLINKX (BLNX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 87p | MARKET VALUE: | £347m | |
| TOUCH: | 86-87p | 12-MONTH HIGH: | 235p | LOW: 78p |
| DIVIDEND YIELD: | nil | PE RATIO: | 46 | |
| NET ASSET VALUE: | 65¢ | NET CASH: | $127m | |
| Year to 31 Mar | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 34 | -8.9 | -2.9 | nil |
| 2011 | 66 | 6.1 | 2.4 | nil |
| 2012 | 114 | 1.9 | 1.1 | nil |
| 2013 | 198 | 16.7 | 4.8 | nil |
| 2014 | 247 | 17.6 | 3.2 | nil |
| % change | +25 | +5 | -33 | - |
*Includes intangible assets of $115m, or 29p a share £1=$1.69 | ||||
