Blinkx Share Discussion Threads

[sikhthetech] 05/4/2016 14:18

How many transformational years do they need...


"A year ago, the company told us 2014/15 had been a transformational year for the online advertising industry and the company. Today, chief executive S. Brian Mukherjee told us 2015/16 has been … er, “a transformational year for the Industry and the Company”.

[football] 05/4/2016 14:18

Maybe he got to buy shares in blinkx

[leluot3] 05/4/2016 14:13

Proud of your friends are you football?

8 long years and we reach 19p - JUST

What a great company this really is!!!!!

[football] 05/4/2016 14:08

Should You Buy Blinkx Plc On Today’s News?

Online video platform Blinkx (LSE: BLNX) this morning released a trading update ahead of its results for the year ended 31 March. The shares have fallen 15% to 18p, as I’m writing.

Still not convinced
A year ago, the company told us 2014/15 had been a transformational year for the online advertising industry and the company. Today, chief executive S. Brian Mukherjee told us 2015/16 has been … er, “a transformational year for the Industry and the Company”.

The 2014/15 transformational year saw Blinkx’s revenue fall 13% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) dive from $39.6m to just $3.5m. From today’s update we can see that the 2015/16 transformational year will see revenue fall around 22% with an EBITDA loss of $10-11m. Meanwhile, guidance of around $76m cash and equivalents on the year-end balance sheet represents a drop of $20m from 12 months ago.

Blinkx’s declining fortunes have coincided with online advertisers realising they were being somewhat ripped off for the money they were paying. Blinkx and its rivals have had to provide a better service at a lower price, as well as dealing with an industry shift from desktop to mobile and programmatic advertising.

Blinkx’s H1 revenue was down $17.6m on the previous six-month period, and I calculate that it has continued to hurtle lower in H2 by around $15.4m. Meanwhile, EBITDA remains in negative territory, with H2 looking like a loss of around $3.7m compared with $6.8m in H1.

Blinkx talks much of reduced operating expenses, re-branding and being “now well aligned with broader structural market trends”, but has still to convince me that it can become a sustainably profitable and cash-generative business.

[rocket fuel] 05/4/2016 14:08

oh, and of course their latest cloud 9 offering.

[rocket fuel] 05/4/2016 14:03

sikh, expect stuff! Incredible Big Data opportunities going forward with posssible merger of equals leading to inflection points within transformational years within the seasonality of this industry!

[sikhthetech] 05/4/2016 13:53

Cromw3ll,

what to expect?


what not to expect...

how many more vague statements.
How many more transitional years...
Clarity from BoD over what's happening... no more 'seasonality' or excuses...


How much longer for the business to be successful...

[sikhthetech] 05/4/2016 13:50

keep them hanging on...even more time...
yet another 12 months...

rinse and spin...

[football] 05/4/2016 13:35

12 months is my guess alex at most

[alex1621] 05/4/2016 13:30

2018 I think. It takes time to build a business, effectively from scratch.

[kendonagasaki] 05/4/2016 13:28

Can't wait for the next quarterly update! Continued slowdown?Ad blocking killing blnx business?Barky being made new CEO?Never a dull day with these amateurs!!!!

[cromw3ll] 05/4/2016 13:13

$75M in new revenue

Drawdown of Non-Core product lines, which now constitute approximately 30% of total revenues - compared with over 50%

Programmatic revenues grew 66%, with programmatic and video now constituting over 50% of total revenues, across desktop and mobile devices


What do you all expect in a transitional year?

[rocket fuel] 05/4/2016 12:38

The only thing keeping this entity alive right now is cash in bank (12.5p) but as that burns away in the blnx furnace so will any possible takeout offer dwindle down in cash value.

[sikhthetech] 05/4/2016 12:38

In terms of cash...


2015 $95m (2014 $127m - down $32m)
2016 ~$76m (2015 $95m - down $19m)

Not convinced they have cash to last a few years...

[football] 05/4/2016 12:22

alex1621 don't think you have to wait years to find out if it's working or not

[lance corporal winstanley ash] 05/4/2016 12:20

I agree there Alex. Blinkx could carry on as a going concern for the next 5 years with cash in the bank and the cost cutting.

[alex1621] 05/4/2016 12:17

Agree with Football. Blinkx is a frustrating share. It's effectively a start up with a great deal of money in the bank, enough to allow the business model to go on for several years. Perhaps we'll only really know if it's working in a few years from now. In the meantime, it's just a speculative punt. There has been a great deal of talk about Comcast etc, but I'm not sure how predictive that measure is. I see the share price has recovered a bit?

[geheimnis2] 05/4/2016 12:16

mmmm....looks like the share price will end the day blue?

dear old loops would have loved that!

[sikhthetech] 05/4/2016 12:15

JW, thanks...
no, haven't bought any today... will think about it..

it's another vague statement... new words to confuse, same old...

I think things will settle over the next few days...

[sikhthetech] 05/4/2016 12:10

gl,
The Bod have always issued vague statements, it's nothing new... the new word 'seasonality' seems another way to blame something else...

I've always treated Comscore/Quantcast with a pinch of salt... earlier this year, they were trying to show their footprint/reach...