Blinkx books Olympic quadruple jump in earnings

Video search engine Blinkx has said it expects to deliver a 400 per cent increase in earnings per share thanks in part to boosts from the London Olympics and the US presidential election.

Video search engine Blinkx has said it expects to deliver a 400 per cent increase in earnings per share thanks in part to boosts from the London Olympics and the US presidential election.

Blinkx, which powers video search on AOL.com and was spun out of Autonomy in 2007, said basic earnings per share of 4.4 US cents for the year to March 31st 2013, up from 1.1 cents the prior year.

Bolstered by the integration of 2011 acquisitions PVMG and Burst, revenues are expected to increase 71% to around $196m, ahead of the previously upgraded range of $180-185m, with pre-tax profits, including one-time events, increasing from $1.9m to roughly $15m.

As well as the one-off advertising spending boost driven by the Olympics and US presidential elections, Blinkx attributed the outperformance to previous acquisitions and strong growth in the broader online advertising industry in general and video advertising in particular.

Chief Executive Officer Brian Mukherjee acknowledged it was an exceptional year for the company.

"Widespread broadband adoption, proliferation of connected devices and the accelerating consumption of video content online continue to fuel the growth of the industry.

"This sector momentum, along with one-time events, strengthening fundamentals of the business and the effective integration of the acquisitions have been critical to our success and growth this year."

Blinkx, whose net cash at year-end is expected near $55m, expects to announce its full-year results for the year to March 31st on May 13th.

Analyst Paul Richard at house broker Numis said he believed that "structural growth in online video advertising is inexorable and we expect very robust industry growth into the medium/long term."

OH

Recommended

Saga’s figures are heading in the right direction – so should you buy?
Share tips

Saga’s figures are heading in the right direction – so should you buy?

Saga the over-50s travel and financial services specialist, has been struggling for years. But now, with the pandemic behind, it it is planning for fu…
5 Jul 2022
Director dealings w/e 1 July: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 1 July: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
5 Jul 2022
Britain’s ten most-hated shares – w/e 1 July
Stocks and shares

Britain’s ten most-hated shares – w/e 1 July

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
4 Jul 2022
Britain’s most-bought shares w/e 1 July
Stocks and shares

Britain’s most-bought shares w/e 1 July

A look at Britain’s most-bought shares in the week ending 1 July, providing an insight into how investors are thinking and where opportunities may lie…
4 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
The income investor’s dilemma
Income investing

The income investor’s dilemma

Pay attention to dividend growth as well as initial yield when picking income trusts, says Max King.
4 Jul 2022