Blinkx slides after revenue growth continues to slowdown

1st Oct 2014 12:33

Shares in digital media group Blinkx slumped nearly 15% on Wednesday morning after the group admitted revenue had continued to suffer a slowdown in the second quarter.As such, it now expects to breakeven for the first half on the back of revenue of between $102m and $104m, which is below analysts' forecasts.It comes after a profit warning from the group back in July, which put first half revenue about $5m below its initial expectations.Since the profit warning, the group has seen sequential month-on-month growth and said it believes it has reached an inflection point.It anticipates revenues from its mobile division, which it has made a high-priority area, will contribute around 20% of first half revenue."The past six months have been transitional for Blinkx, which operates in an evolving industry moving toward emerging mobile models. We are well positioned with high-growth advertising formats that are expected to contribute an increasing percentage of revenues," Brian Mukherjee, chief executive of the group said."We have taken decisive steps to fortify our business model and realign our resources to target growing areas of the sector, and we feel confident in our prospects going forward."