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Video search engine company Blinkx narrowed its losses in the year to March to US$8.9m (£6.2m), as revenue rose to $33.6m (£23.4).
Founder and CEO Suranga Chandratillake was ebullient following the results, tellingGrowth Company Investor that 'together with a 140% increase in revenue, the (swing to) positive EBITDA figures has reduced our risk’. Blinkx, floated on AIM in 2007 with a £25m funding at 45p, enables users of its site to search across a variety of video hosting websites such as Youtube, Myspace and Metacafe. In fact, Chandratillake describes Blinkx as being like a ‘remote control for online tv’.
He believes Blinkx, with $14.6m (£10m) cash, is poised for great things as the large video content market develops, arguing that ‘there is no market with more potential than online video advertising. Advertising budgets are going to shift from television to online content.’
Broker Piper Jaffray predicts revenues should grow by 33% to $40.1m (£27.6m) in the year to March 2011, although Blinkx is not forecast to make a profit until 2012, when analysts see a pre-tax $2.9m (£2m) as achievable. Whilst Blinkx is operating in a highly competitive environment in which it is seeking to win market share from established names such as Youtube and Google, we think the shares represent a risky, but potentially hugely rewarding punt.
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