8th Apr 2015 07:40
LONDON (Alliance News) - Internet media firm Blinkx PLC said Wednesday it expects to meet market expectations for the full year to end-March, although earnings before interest, tax, depreciation, amortisation, acquisition and exceptional costs is expected to be significantly down from the previous year.
Blinkx expects to post adjusted Ebitda of at least USD3 million, compared to USD39.6 million a year before, on revenue of at least USD210 million, compared to USD247.2 million.
According to forecasts provided by Morningstar, Numis Securities Ltd expects Blinkx to post a full year pretax loss of GBP3.7 million.
At the time of its interim results last November Blinkx has posted a swing to a pretax loss due to a fall in revenue, and increased administrative expenses as it continued to invest in its mobile offering.
At that time the company attributed the increased costs to a jump in the costs of traffic acquisition as the market become more competitive and mobile continued to grow. Additionally, it cited the lingering reverberations of a disparaging blog post made last January which made allegations about its business model.
On Wednesday, Blinkx said its acquisitions of Lyfe Mobile last May and AdKarma last December accounted for the majority of cash usage during the year, and the acquisitions continue to be integrated into the platform.
Revenue trends have continued to transition towards mobile and video, Blinkx said, and over the last year it made "significant progress" in stabilising its desktop business and continued to invest in mobile and automated marketing and advertising capabilities, as well as consolidating its product, sales and marketing strategy to better align with advertiser requirements.
"In a sector characterised by rapid change, we made transformational moves to stabilize and strengthen our core revenue streams while positioning the company in the emerging high-growth areas of the industry," said Chief Executive Officer Subhransu Mukherjee in a statement.
Shares in Blinkx are trading down 2.5% at 29.75 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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