Blinkx puts 129% profit growth down to London Olympics and Presidential elections
Video search engine Blinkx has announced that its revenue has grown by 73 per cent to $198m, with users watching videos from the London Olympics and the Presidential elections being attributed for the growth.
The report suggested that the four structural trends driving the growth of the online video sector were: the prevalence of broadband and high-speed mobile networks; the on-going move to video-enable the text web; the proliferation of smartphones and tablets allowing users to watch content anywhere; and advertisers increasing budgets to address the growing online video audience.
Brian Mukherjee, Blinkx chief executive, said: “Several structural trends are fuelling the growth of the online advertising industry in general, and the video advertising sector in particular. These include widespread broadband adoption, the proliferation of connected devices and the rapid migration and consumption of video content online - all of which are prompting advertisers to follow audiences online. This year, the industry also benefited from the increase in advertising spend attributed to two high-profile events - the summer Olympics and the US political campaigns in a Presidential election cycle.
“This has been an exciting year for Blinkx and we are delighted to report a record performance. The business demonstrated strong underlying growth, stability and efficiency, which was accelerated by the ahead-of-schedule integration of the acquisitions that we made last year. The scale, scope and reach of these acquisitions enabled us to serve a greater number of advertisements to a wider audience at robust monetization rates, which helped drive our growth.”
The figures also found adjusted pre-tax profits were $24.6m, an increase of 129 per cent from the previous year.