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.

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> Sam does not own shares in Blinkx.