Blinkx May Exit Non-Video Online Advertising--CEO

By Rory Gallivan

LONDON--Internet advertising technology group Blinkx (BLNX.LN) could exit some of its online display advertising activities to focus on the more lucrative area of video.

Chief Executive S. Brian Mukherjee said on Monday that the company will try to work out how to use its technology to make its non-video advertising activities more lucrative, but will divest these activities to focus on video if this can't be done.

Non-video online advertising rates have been under pressure amid a rise in "performance" marketing, where online advertising is only paid for if it results in measurable success, such as people clicking on adverts, Mr. Mukherjee explained.

Although it started as a specialist in speech recognition and visual analysis technology that generates advertising related to online videos, Blinkx has moved into non-video areas through acquisition. Blinkx doesn't break down figures for revenue from video and non-video advertising.

Blinkx earlier Monday reported a $24.8 million pretax loss for the year to March 31, compared with a $17.6 million profit a year earlier. Revenue dropped 13% to $215 million as gains in mobile advertising sales were outweighed by declines in desktop advertising, a trend that has affected the broader online advertising sector.

Blinkx was founded in 2004, having been part of the U.K. search software business Autonomy, which is now part of computer company Hewlett-Packard Co. (HPQ).

Shares at 1119 GMT, down 4 pence, or 10.3%, at 35 pence valuing the company at GBP140.8 million ($220 million).

Write to Rory Gallivan at [e-mail]; Twitter: @RoryGallivan

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