31st Mar 2014 12:04
LONDON (Alliance News) - Blinkx PLC Monday strongly refuted a blog post that questioned its business model, and confirmed that it expects to meet market expectations for the financial year ending Monday.
The video search and advertising services company expects to report revenues between USD245 million to USD247 million, and adjusted earnings before interest, tax, depreciation and amortisation between USD37 million to USD39 million, in line with market consensus, it said.
Blinkx said it had completed an internal and external review of the assertions that the blog post, which was posted January 28, 2014 by a Harvard Professor, and had subsequently produced and provided a detailed response. The blog was paid for by anonymous US investors, and claimed that a company called Local Weather had deceptive advertising practices, pretending to be independent while actually being part of Blinkx. However, this was found to be untrue, with the real independent owner of Local Weather defending Blinkx,
In its response the company called into questions the motivations and transparency of the blogger and the sponsors of his research, and provided rebuttals to the blog's points.
Blinkx said it does "not intend to engage in any further debate on this topic."
Jefferies analyst Sara-Louise Boyes said the rebuttal "should begin the process of Blinkx putting the blog to bed." Although Boyes added that focus might instead turn to the company's Capital Markets Day sessions Monday.
"There will be perhaps more focus on what the company says later, rather than the legal speak within a formal statement, but clearly a real opportunity for Blinkx to set the record straight," Boyes said.
It plans to release its full-year results May 6, 2014.
Shares in Blinkx were trading up 3.8% at 117.25 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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