Blinkx H1 revenues come under pressure from blog effects

Thursday 3 July 2014 | 13:18 CET | News
Internet media platform Blinkx said revenues and EBITDA for the first half for financial year 2015 came in under guidance due to lower than expected demand, especially within Desktop. Revenues for the half grew 5 percent year-on-year while EBITDA went around USD 5 million lower than expectations. Blinkx said the business has traditionally been back-end loaded toward the latter part of each quarter, with disproportionate growth toward the end of each calendar year. The last three months, seasonally the smallest quarter of the year, saw lower than forecast demand due mainly to industry-wide issues of efficiency and effectiveness, compounded by the effects of a disparaging blog about the company. This resulted in a slower than expected return of demand, despite earlier signs of normalisation. With a blog post titled "The Darker Side of Blinkx", associate professor at Harvard Business School Benjamin Edelman sent the value of Blinkx stocks towards a downward spiral in February, wiping out a third of their value, 

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