Video search engine, blinkx, said the Olympics and the US presidential elections boosted first half revenues and it now expects pre-tax profit ahead of market expectations for the period.
Profit before tax, including one-time costs and amortisation of purchased intangibles for the six months ended September 30th will be around $2.4m, ahead of market expectations. Revenues for the period will be around $80m.
Chief Executive Brian Mukherjee said: "This has been an exceptional first half for blinkx. The business has shown strong growth, driven by its underlying fundamentals in combination with the ahead-of-schedule integration of Burst and PVMG into the blinkx engine and increased advertising spend allocated to special events - specifically the summer Olympics and the US presidential elections."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
blinkx added that strong growth in video advertising and increased demand for watching videos online has also boosted its prospects for the full year.
"While these one-time events have provided us with a better-than-expected boost to revenues during the traditionally slower summer months, we anticipate revenues for the second half to be similar to the first half, resulting in a modest increase in our expectations versus consensus for the full year."
"There are powerful secular trends driving the growth of video advertising: the proliferation of broadband and connected devices, and the accelerating migration and consumption of video online. This market momentum underscores the vitality of the sector and our business model," the group added.
Based on its performance during the last six months and the fundamentals of the sector, blinkx said it is confident in the group's outlook for the rest of the year.
CJ
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
