Blinkx shares shed more than a third on profit warning

24th Aug 2015 09:18

(ShareCast News) - Shares in internet media company Blinkx lost more than a third early on Monday after the company issued a profit warning.At 0943BST the AIM listed company had shed 33.96% to 17.15p, making it one of the worst performers in the index.Blinkx said in a trading update that while first quarter trading had been strong, early second quarter trading was below expectations and the company now anticipated a loss for the first half of the year.The online advertising specialist said it now expected first half revenue to be between $85-95m, and an earnings loss between $5-8m."Management has taken decisive steps to manage the group's cost structure to reflect the changing revenue and profitability profile of its product mix, and expects a return to profitability, as its core products continue to ramp and offset declines in non-core products," Blinkx said.The company, which was transitioning to shift to the core activities of mobile, video and programmatic buying, said core revenues were forecast to grow by 75% while non-core were expected to decline by 60%.Numis, which had an 'add' rating on the stock, put its recommendation under review.Analyst Paul Richards said in a note to clients it suspended its rating due to uncertainty until interim results in November.Shore Capital, which does not have a rating on the stock, said it appeared the company is feeling further traffic clean-up efforts in the industry that we have seen so far."There is a chance that this has a further knock on effect to others in the industry, however it is difficult to determine at this stage," analyst Peter McNally said.