5th Apr 2016 07:34
LONDON (Alliance News) - Internet media company Blinkx PLC on Tuesday said it expects to post lower revenue and an adjusted earnings loss for the year to the end of March following a weakening in the fourth quarter.
Blinkx said it expects to deliver revenue of USD165.0 million to USD170.0 million for the full year, down from USD215.0 million a year earlier.
The company expects to make a loss in terms of adjusted earnings before interest, taxation, depreciation and amortisation USD10.0 million to USD11.0 million, deflating hopes which had been raised after the third quarter when the group reached profitability. For the 2015 financial year, the group posted adjusted EBITDA of USD3.5 million.
Results were hit by seasonality of sales in the fourth quarter and by scaling down non-core operations, Blinkx said. The company will book a USD4.0 million restructuring charge for the year after it managed to strip out around USD40.0 million in annual operating costs.
"FY2016 has been a transformational year for the industry and the company. We believe that we now have the technology, talent and relationships in place to scale both organic and inorganic growth as the industry continues to evolve and consolidate," said Chief Executive Subhransu Mukherjee.
"Through strong cost discipline and a strategic focus on core mobile, video and programmatic products we are now well aligned with broader structural market trends," he added.
Blinkx will publish annual results on May 17.
Blinkx shares were down 14% to 18.35 pence early Tuesday, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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