MENU

Why Blinkx Plc Shares Lit Up

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares in Blinkx (LSE: BLNX) jumped over 11% in early trade this morning, after reporting a 36% increase in year-on-year revenues in its half-yearly report.

So what: That 36% increase brought revenues up to $111.55m from $81.97m, but also contributed to a massive three-fold increase — 335% — in pretax profit, coming in at $10.78m from $2.48m in the comparative six-month period last year.

Management reported that its growth “comfortably exceeded that of the industry, even without the one-time benefits of the previous year”, helped by an expanding universe of organic and acquisition growth opportunities, particularly in mobile .

It also saw good results from its recently released proprietary video syndication platform, blinkx Video Advantage, which distributes video content across multiple websites.

Now what: Although Blinkx doesn’t currently pay a dividend, today’s news means that its shares are now up over 150% in the past year, a fantastic performance from a growth stock.

Management aren’t afraid to ‘speculate to invest’, having acquired a leading online video content syndication and advertising platform in the US named Grab Media. On the surface, it doesn’t look like the end of this growth stock’s story.

The Motley Fool's top growth stock

While there's no doubting Blinkx's performance over the last 12 months, our team of top analysts have highlighted a share that they believe has yet to fulfill its growth potential, and produced a special report in which we evaluate its finances, risks and growth prospects going forward. 

Simply click here to get your copy delivered to your inbox immediately -- completely free.

> Sam does not own shares in Blinkx.