The FY13 results from video search engine provider Blinkx were as strong as previous announcements had forecast (see here), with revenue for the year ending March 31 2013 up 73% to $198m. Although part of this was due to acquisitions, plus the impact from events such as summer 2012 Olympics and US Presidential elections that are estimated to have contributed around a tenth to FY13 revenue, management says there was strong underlying growth too.
There were increased profits to go with the revenue growth with adjusted PBT (before acquisitions and exceptional costs) up from $10.4m to $24.6m, with PBT at $16.7m compared to $1.9m, making 2013 a successful year for the company.
The company points to four structural trends driving the online video sector: increasing prevalence of broadband and high speed mobile networks; video-enabling websites; smartphone and tablet adoption accelerating ‘anytime/anywhere’ video consumption; and an increase in online video advertising budgets. The notable theme is that these trends have longevity so it is up to Blinkx to make the most of them. At the moment it has an abundance of interactions across its platform that it is not monetising, so this is the immediate challenge. Rapid movement in this area is necessary because as more providers see the revenue opportunity in the video search and advertising sector, it will be harder for Blinkx to defend its market.