Blinkx share price rises as bleak results fail to dampen investors

 
Oliver Smith
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CEO Brian Mukherjee: This has been a transformational period for Blinkx
Falling revenues and losses were not enough to put off investors in the video search and advertising group Blinkx yesterday.
Blinkx blamed the industry’s shift from desktop to mobile for the results, as well as ongoing commercial and reputational damage following Harvard Business School professor Ben Edelman’s critical blog post regarding Blinkx in January.
Revenues fell five per cent to $106m (£66.7m) during the six months to 30 September, and Blinkx swung to a $9.7m loss from a profit of $10.7m in the same period last year. “Given significant industry changes and the shifting product mix within the company, this has been a transformational period for Blinkx, which operates in a dynamic marketplace,” said chief executive Subhransu Brian Mukherjee.
Despite the downbeat results, shares in the firm rose 2.73 per cent yesterday to close up at 28.25p.
“The group has repositioned towards mobile and, though clearly subject to considerable uncertainty, we see scope for revenues and profitability to rebuild into fiscal 2016,” said Numis analyst Paul Richards, who changed his rating for Blinkx from “buy” to “add” with a target price of 33p.

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