Blinkx Plc Third Quarter Trading Update (8206L)
14 January 2016 - 6:00PM
UK Regulatory
TIDMBLNX
RNS Number : 8206L
Blinkx Plc
14 January 2016
Third Quarter Trading Update
London, England and San Francisco, CA. - 14 January 2016 -
blinkx PLC ("blinkx" or the "Company"), today updates the market on
its performance for the third quarter of financial year 2016,
covering the period from 1 October 2015 to 31 December 2015 ("Q3
2016" or "the Period"). As announced previously, the Company will
continue to provide trading updates on a quarterly basis.
Financials
Based on preliminary, unaudited results, Q3 2016 revenue
performance was in line with management expectations, during the
seasonally strongest quarter of the financial year. Core products
continued to ramp and offset declines in Non-Core products, while
management continued to rationalize the Company's cost structure
during the Period. As a result of the progress made on revenues and
cost reduction actions, profitability in Q3 2016 was ahead of
management expectations, achieving break-even on an adjusted*
EBITDA basis during the Period.
Products
As noted in the last trading update of 9 October 2015, the
Company continued to accelerate investments in its Core mobile,
video and programmatic capabilities, with particular emphasis on
ramping its unified programmatic platform. During the Period,
blinkx continued to integrate its platform with several dominant
programmatic demand and supply partners. Programmatic revenues grew
rapidly throughout Q3 2016, setting a new 3-month performance
benchmark, which was ahead of management expectations.
Market
The market continues to show evidence of strong sectoral growth
and an accelerating pace of consolidation. According to eMarketer,
US digital ad spend is anticipated to grow from $58B in 2015 to
$67B in 2016, led by increases in mobile, video and programmatic
budgets. Of particular note, programmatic spending is expected to
surge by 40% in 2016, reaching $21.5B and accounting for 67% of
total digital display ad spending. Against this backdrop, however,
the market continues to polarize between entities that provide an
integrated offering and are gaining share, at the expense of point
solutions that face challenges of scale and scope, and will need to
consolidate in order to compete and succeed.
Outlook
"We are pleased to provide an update on our third quarter
trading, with adjusted* EBITDA performance ahead of management
expectations," said S. Brian Mukherjee, CEO of blinkx. "Our focus
on Core mobile, video and programmatic products, and exit of
Non-Core product lines, is fully aligned with broader structural
market trends. In addition, we continue to take cost reduction
measures, which have begun to positively impact our path to
profitability."
Non-GAAP Measures
-- This press release contains references to adjusted* EBITDA.
This financial measure is not a measure that has any standardized
meaning prescribed by IFRS and is therefore referred to as a
non-GAAP measure. The non-GAAP measures used by blinkx may not be
comparable to similar measures used by other companies.
-- Adjusted* EBITDA is defined as profit for the year
attributable to equity holders of the parent before interest,
taxes, depreciation and amortization, stock based compensation
expense, and acquisition and exceptional costs. Management believes
that this measure is a useful supplemental metric as it provides an
indication of the results generated by the Company's principal
business activities prior to consideration of how the results are
impacted by one time exceptional charges, how the results are taxed
in various jurisdictions, or how the results are affected by the
accounting standards associated with the Group's stock based
compensation plan.
For further information please contact:
Analyst and Investor Contact Financial Media Contacts
Dan Slivjanovski Edward Bridges/Charles
blinkx plc Palmer
FTI Consulting LLP
(UK) 020 3727 1000
NOMAD and Joint Broker Joint Broker for blinkx
for blinkx plc plc
Charles Lytle/Christopher Lorna Tilbian/Mark Lander/Nick
Wren Westlake
Citigroup Global Markets Numis Securities Limited
Limited (UK) 020 7260 1000
(UK) 020 7986 9756
About blinkx
blinkx (LSE AIM: BLNX) is an Internet media company that
connects consumers and brands through premium content online.
Founded in 2004 in the UK, blinkx pioneered Internet Video Search
using its patented COncept Recognition Engine (CORE). This
technology leverages speech recognition, text and image analysis to
deeply understand the meaning and context of video content to
generate improved search relevancy for consumers and a brand safe
environment for advertisers. Through its partnerships with hundreds
of media companies, including NBC, Conde Nast, Reuters and
Bloomberg, blinkx has indexed and search enabled millions of hours
of video content. blinkx powers video search, discovery or
monetization on thousands of online properties including Lycos,
Discovery Networks, Hallmark and Fox Sports. blinkx is
headquartered in San Francisco, California with offices worldwide.
For more information please visit www.blnx.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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