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UPDATE 2-Search engine Blinkx upbeat on outlook; shares surge
May 19, 2010 / 7:08 AM / 7 years ago

UPDATE 2-Search engine Blinkx upbeat on outlook; shares surge

* Sees ad spending boosting pipeline - CEO

* CPM $16.5 vs $16.25 last year

* Sees more users on new mobile search engine

* FY pretax loss $8.9 mln vs $9.3 mln yr-ago

* Shares up 52 pct (Recasts; adds CEO, analyst comments, stock activity)

By Anirban Sen

BANGALORE, May 19 (Reuters) - British online video search engine Blinkx Plc BLNX.L posted a narrower full-year pretax loss, helped by increased traffic, and saw higher advertising spend boosting its future results.

Shares of the company rose 52 percent and were among the top gainers on the London Stock Exchange on Wednesday.

“The ad market at this stage is certainly extremely healthy, and we see that reflecting on our pipeline going forward,” Chief Executive Suranga Chandratillake told Reuters.

He also expected the newly launched beta version of Blinkx’s mobile video search engine to boost the number of users over the next 12 months.

“Blinkx has continued to outgrow the wider online ad market, helped by the shift of advertising dollars towards video formats, and the greater consumption of video content online,” analyst Rajeev Bahl at Piper Jaffray wrote in a note.

In fiscal 2010, Blinkx saw its cost per mille (CPM), or cost per thousand views of an ad, rising to $16.50 from $16.25 as brands like Microsoft (MSFT.O) and McDonald’s (MCD.N) booked their campaigns on its website.

For the year ended March 31, the company posted a pretax loss of $8.9 million, compared with a loss of $9.3 million a year ago.

Revenue climbed 140 percent to $33.7 million.

Video searches surged 169 percent to 22.6 million searches per day in March from the year-ago period.

Shares of Blinkx were up 46 percent at 19 pence at 1157 GMT. They had touched a new year-high of 19.75 pence earlier in the session. (Reporting by Anirban Sen in Bangalore; Editing by Prem Udayabhanu)

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