blinkx, the online video company, has defied the advertising downturn that has affected the media sector, publishing first-half results ahead of expectations and taking a bullish outlook.
blinkx’s advertising technology allows marketers to match their messaging to relevant videos. Suranga Chandratillake, chief executive, said this “contextual targeting”, alongside strong growth in online video usage, has insulated it from cuts in marketing budgets.
In the six months to September 30, blinkx’s revenues increased 115 per cent to $6.4m (£4.1m), although operating losses (before flotation costs) also widened by 87 per cent to $4.3m (£2.7m).
Both revenues and net losses came in ahead of analysts’ expectations, Mr Chandratillake said, driven by a 106 per cent increase in visitors to its blinkx.com site that reached more than 7m users per day in September.
While the average price of an online display ad fell by 11 per cent in the third quarter, according to some estimates, blinkx’s rates increased every month.
blinkx’s technology now powers the video search for MSN UK, ITN and Rambler, a large Russian portal, while new providers of content to its network include Getty Images, Time and CBS.
Shares in blinkx, which listed in May 2007 at 45p, on Monday closed up ¼p to 18p.