10th consecutive quarter of 20+% revenue
growth, exceeding the high end of previously issued guidance on
both revenue and adjusted EBITDA
Q2 revenue grew 21% year-over-year, with an
adjusted EBITDA margin of 22%
Company released Opera One, the latest version
of Opera's flagship browser, incorporating new functionality
and a redesigned experience
Opera introduced 'Aria', a fully
integrated browser AI
Company announced a recurring semi-annual
dividend of $0.40 per ADS
($0.80 annualized)
Company raises both revenue and adjusted
EBITDA guidance for 2023
OSLO,
Norway, Aug. 24, 2023 /PRNewswire/ -- Opera
Limited (NASDAQ: OPRA), one of the world's major browser developers
and a leading internet consumer brand, announced its unaudited
financial results for the quarter ended June
30, 2023.
Second Quarter and first half 2023 Financial Highlights
(in thousands, except percentages and per share amounts,
unaudited)
|
|
Three Months Ended
June 30,
|
|
|
Year-over-year
|
|
|
Six Months Ended
June 30,
|
|
|
Year-over-year
|
|
|
|
2022
|
|
|
2023
|
|
|
%
change
|
|
|
2022
|
|
|
2023
|
|
|
%
change
|
|
Revenue
|
|
$
|
77,834
|
|
|
$
|
94,134
|
|
|
|
21
|
%
|
|
$
|
149,417
|
|
|
$
|
181,185
|
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(5,836)
|
|
|
$
|
13,537
|
|
|
|
NM
|
|
|
$
|
(15,271)
|
|
|
$
|
29,015
|
|
|
|
NM
|
|
Margin
|
|
|
(7.5)
|
%
|
|
|
14.4
|
%
|
|
|
|
|
|
|
(10.2)
|
%
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
$
|
16,569
|
|
|
$
|
20,466
|
|
|
|
24
|
%
|
|
$
|
23,918
|
|
|
$
|
42,204
|
|
|
|
76
|
%
|
Margin
|
|
|
21.3
|
%
|
|
|
21.7
|
%
|
|
|
|
|
|
|
16.0
|
%
|
|
|
23.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ADS (2)
|
|
$
|
(0.05)
|
|
|
$
|
0.15
|
|
|
|
NM
|
|
|
$
|
(0.13)
|
|
|
$
|
0.32
|
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow from
operations (1)
|
|
$
|
(3,974)
|
|
|
$
|
13,216
|
|
|
|
NM
|
|
|
$
|
7,536
|
|
|
$
|
36,533
|
|
|
|
385
|
%
|
______
|
(1) See "Non-IFRS
Financial Measures" and "Reconciliations of Non-IFRS Financial
Measures" sections below for explanations and reconciliations of
non-IFRS financial measures.
|
(2) Opera Limited has
American depositary shares (ADSs) listed on the Nasdaq Global
Select Market, each representing two ordinary shares in the
company.
|
"The second quarter of 2023 was our 10th consecutive quarter of
revenue growth in excess of 20%, fueled by our strong product
lineup and continued scaling among high-value users. Revenue
outperformance and ongoing cost discipline translated into profits
also exceeding our expectations," said co-CEO Lin Song.
"During the quarter we were able to deliver several product
updates that point to continued innovation and our ability to
quickly iterate. We were able to roll out an entirely new
generation of our flagship desktop browser, Opera One, and
introduce the world to 'Aria', our unique AI chat bot that is
currently available to users of Opera for Android, Opera for iOS,
and Opera One. As anticipated, Aria users are displaying increased
engagement with the Opera browser, and we remain very excited about
the continuation of this roll-out across our user base," continued
Mr. Song.
"In particular, the much anticipated roll-out of Aria to Opera
GX is scheduled for the third quarter of 2023. While still early
days, we believe that the increased engagement we are already
seeing will become an additional driver in our ability to grow
monetization as more and more of our users upgrade to newer
versions of our browsers and take advantage of this integrated
service," finished Mr. Song.
Second Quarter and Recent Business Highlights
- Advertising revenue grew 25% year-over-year, and now
constitutes 57% of total revenue. This revenue category was driven
by Opera Ads, which continues to exceed expectations, and ongoing
monetization growth for mobile and GX browsers.
- Search revenue grew 15% year-over-year. The growth in search
revenue continues to be driven by our focus on users with the
highest monetization potential in western markets.
- Opera had 316 million monthly active users (MAUs) in the second
quarter of 2023, down slightly versus the first quarter following
our continued strategy of focusing on higher monetizing users. The
user base in Western Europe and
North America accounted for 15% of
our total footprint.
- In the second quarter of 2023, annualized ARPU was
$1.17, an increase of 25% versus the
second quarter of 2022.
- The Opera GX gaming browser had 23.7 million monthly
active users across PC and mobile in the quarter, up 9% from 21.7
million in the first quarter.
- Opera One, our new flagship browser was made available to all
desktop users.
- Aria, Opera's AI chat bot, was added to Opera One and Opera for
Android during the quarter and is now also available on Opera for
iOS.
- In June 2023, Opera announced an
ongoing dividend of $0.80 per ADS per
annum to be paid semi-annually. The first record date was in June,
with payment in July.
- At the end of the second quarter, our cash position was
$98 million, up $13 million relative to our cash position of
$85 million at the start of the
quarter. In addition to our cash balance, we have a combined
$196 million of assets held for sale
and receivables on our balance sheet, reflecting our 9.5% stake
in OPay and remaining receivables from the sale of Star X in
2022.
Business Outlook
"The second quarter of 2023 continued the trend of revenue and
EBITDA exceeding guidance, and as a result we are once again
raising our full year guidance," said Frode
Jacobsen, CFO.
"Furthermore, our healthy cash flow and strong balance sheet
enabled us to become a recurring dividend payer in the quarter, a
milestone I am incredibly proud of," concluded Mr. Jacobsen.
For the full year of 2023, Opera is raising the previously
issued guidance of revenue to be $380
million to $390 million, up
from $373 million to 390 million. We
guide adjusted EBITDA to be between $80
million and $84 million, or a
21% margin at the midpoints, up from $77
million to $83 million.
For the third quarter of 2023, Opera expects revenue of
$97 million to $100 million, representing 15% year-over-year
growth at the midpoint. Adjusted EBITDA is expected to be between
$18.5 million and $20.5 million, representing a 20% margin at the
midpoint.
Second Quarter 2023 Financial Results
All comparisons in this section are relative to the second
quarter of 2022 unless otherwise stated.
Revenue increased by 21% to $94.1
million.
- Advertising revenue increased by 25% to $53.8 million.
- Search revenue increased by 15% to $38.9
million.
- Technology licensing and other revenue was $1.5 million.
Operating expenses increased by 22% to $81.7 million.
- Combined technology and platform fees, content cost and cost of
inventory sold were $22.6 million, or
24% of revenue.
- Personnel expenses, including share-based remuneration, were
$21.4 million. This expense consists
of cash-based compensation expense of $16.7
million, a 5% decrease year-over-year, and share-based
remuneration expense of $4.6 million.
Share-based remuneration includes grants made by Opera's majority
shareholder, which represents an expense in the P&L even
though Opera has no obligation in connection with these grants, and
they do not represent dilution for Opera's shareholders.
- Marketing and distribution expenses were $27.0 million, an increase of 7%.
- Depreciation and amortization expenses were $3.4 million, a 2% decrease.
- All other operating expenses were $7.4
million, a 5% increase.
Operating profit was $12.5
million, a 13% margin, compared to an operating profit of
$11.2 million and a margin of 14% in
the second quarter of 2022.
Net finance income was $2.2
million, inclusive of interest income on bank deposits and
time-value changes of our Star X receivable, compared to a net
finance expense of $13.3 million in
the second quarter of 2022.
Income tax expense was $1.1
million, compared to $3.7
million in the second quarter of 2022.
Net income was $13.5
million, an 14% margin. This compared to a net loss of
$5.8 million in the second quarter of
2022.
Basic earnings per ADS was $0.15 in the second quarter of 2023, compared to
a net loss per ADS of $0.05 in the
second quarter of 2022. In the second quarter of 2023, the weighted
average number of ordinary shares outstanding was 179.8 million,
corresponding to 89.9 million ADSs.
Adjusted EBITDA was $20.5
million, representing a 22% margin, compared to adjusted
EBITDA of $16.6 million in the second
quarter of 2022.
Free cash flow from operations was $13.2 million, compared to a net cash outflow of
$4.0 million in the second quarter of
2022.
We have posted Opera's unaudited financial results by quarter
since 2019 at
https://investor.opera.com/financial-information/quarterly-results.
Conference Call
Opera's management will host a conference call to discuss the
second quarter 2023 financial results on Thursday, August 24th at 8:00 am Eastern Time (EDT). Listeners may access
the call by dialing the following numbers:
United States: +1
800-895-3361
China: +10-800-714-1507 or
+10-800-140-1382
Hong Kong: +80-090-1494
Norway: +47 80-01-3780
United Kingdom: +44
0-808-101-1183
International: +1 785-424-1062
Confirmation Code: OPRAQ223
A live webcast of the conference call will be posted at
https://investor.opera.com.
We will be tweeting highlights from our prepared remarks. Please
follow along on Twitter/X, @InvestorOpera.
Non-IFRS Financial Measures
We collect and analyze operating and financial data to evaluate
the health of our business and assess our performance. In addition
to revenue, net income (loss), operating profit (loss), and other
financial measures under IFRS, we use adjusted EBITDA and free cash
flow from operations, which are described below, to evaluate our
business. We use these non-IFRS financial measures for financial
and operational decision-making and as means to evaluate
period-to-period comparisons. While these non-IFRS financial
measures should not be considered substitutes for, or superior to,
the financial information prepared and presented in accordance with
IFRS, we believe that these measures provide meaningful
supplemental information regarding our performance by excluding
certain items that may not be indicative of recurring core business
operating results.
We believe these non-IFRS financial measures are useful to
investors both because they allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision-making and because they are used by our
institutional investors and the analyst community to help them
analyze the health of our business. Accordingly, we believe that
these non-IFRS financial measures provide useful information to
investors and others in understanding and evaluating our operating
results in the same manner as our management team and board of
directors. Our calculation of these non-IFRS financial measures may
differ from similarly-titled non-IFRS measures, if any, reported by
our peers.
We define adjusted EBITDA as net income (loss) excluding (i)
profit (loss) from discontinued operations, (ii) income tax
(expense) benefit, (iii) net finance income (expense), (iv) share
of net income (loss) of equity-accounted investees, (v) impairment
of equity-accounted investees, (vi) fair value gain (loss) on
investments, (vii) depreciation and amortization, (viii) impairment
of non-financial assets, (ix) share-based remuneration, including
related social security costs, (x) non-recurring expenses, and (xi)
other operating income.
We define free cash flow from operations as net cash flows from
(used in) operating activities less (i) purchases of fixed and
intangible assets, (ii) development expenditure and (iii) payment
of lease liabilities.
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including statements relating to the
Company's future financial and operating results, are made under
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as "will," "may,"
"expect," "believe," "anticipate," "intend," "aim," "estimate,"
"intend," "seek," "plan," "potential," "continue," "ongoing,"
"target," "guidance," "is/are likely to," "future" and similar
statements. Among other things, management's quotations and the
Business outlook section contain forward-looking statements. The
Company may also make forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. These forward-looking statements involve known and unknown
risks and uncertainties and are based on current expectations,
assumptions, estimates and projections about the Company and the
industry in which it operates. Potential risks and uncertainties
include, but are not limited to, those relating to: the duration
and development of the conflict in Ukraine and related economic sanctions, as
well as resulting changes in consumer behaviors; the outcome of
regulatory processes or litigation; the Company and its goals and
strategies; expected development and launch, and market acceptance,
of products and services; Company's expectations regarding demand
for and market acceptance of its brands, platforms and services;
Company's expectations regarding growth in its user base, user
retention and level of engagement; Company's ability to attract,
retain and monetize users; Company's ability to continue to develop
new technologies, products and services and/or upgrade its existing
technologies, products and services; quarterly variations in
Company's operating results caused by factors beyond its control;
and global macroeconomic conditions and their potential impact in
the markets in which the Company has business. All information
provided in this press release is as of the date hereof and is
based on assumptions that the Company believes to be reasonable as
of this date, and it undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that its expectations will turn
out to be correct, and investors are cautioned that actual results
may differ materially from the anticipated results. Further
information regarding risks and uncertainties faced by Opera is
included in the Company's filings with the SEC, including its
annual reports on Form 20-F.
About Opera
Opera is a web innovator building on more than 25 years of
innovation that started with the Opera web browser. While Opera is
leveraging its brand and engaged user base in order to grow and
develop new products and services for people who seek a better
internet experience, Opera's PC and mobile web browsers, content
discovery platform Opera News, and apps dedicated to gaming, Web3
and e-commerce are already the trusted choices of hundreds of
millions of active and engaged users. Opera is headquartered in
Oslo, Norway, and listed on the
Nasdaq Global Select Market under the ticker symbol "OPRA".
Download and access Opera's products and services from
www.opera.com.
Learn more about Opera at https://investor.opera.com or on
X, formerly Twitter, @InvestorOpera.
Opera
Limited
Consolidated Statement of Operations
(In thousands, except number of shares which are reflected in
millions and per share amounts, unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Revenue
|
|
$
|
77,834
|
|
|
$
|
94,134
|
|
|
$
|
149,417
|
|
|
$
|
181,185
|
|
Other operating
income
|
|
|
70
|
|
|
|
51
|
|
|
|
242
|
|
|
|
180
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and
platform fees
|
|
|
(1,064)
|
|
|
|
(1,114)
|
|
|
|
(2,284)
|
|
|
|
(1,956)
|
|
Content
cost
|
|
|
(1,059)
|
|
|
|
(1,094)
|
|
|
|
(2,103)
|
|
|
|
(1,983)
|
|
Cost of inventory
sold
|
|
|
(9,719)
|
|
|
|
(20,357)
|
|
|
|
(15,504)
|
|
|
|
(35,523)
|
|
Personnel expenses
including share-based remuneration
|
|
|
(19,071)
|
|
|
|
(21,370)
|
|
|
|
(35,499)
|
|
|
|
(41,423)
|
|
Marketing and
distribution expenses
|
|
|
(25,285)
|
|
|
|
(26,996)
|
|
|
|
(59,424)
|
|
|
|
(51,393)
|
|
Credit loss
expense
|
|
|
(67)
|
|
|
|
(47)
|
|
|
|
(111)
|
|
|
|
(2,446)
|
|
Depreciation and
amortization
|
|
|
(3,421)
|
|
|
|
(3,356)
|
|
|
|
(7,011)
|
|
|
|
(6,735)
|
|
Non-recurring
expenses
|
|
|
(500)
|
|
|
|
-
|
|
|
|
(1,208)
|
|
|
|
-
|
|
Other operating
expenses
|
|
|
(6,477)
|
|
|
|
(7,315)
|
|
|
|
(13,933)
|
|
|
|
(13,422)
|
|
Total operating
expenses
|
|
|
(66,664)
|
|
|
|
(81,650)
|
|
|
|
(137,077)
|
|
|
|
(154,880)
|
|
Operating profit
(loss)
|
|
|
11,240
|
|
|
|
12,535
|
|
|
|
12,582
|
|
|
|
26,485
|
|
Share of net loss of
equity-accounted investees
|
|
|
-
|
|
|
|
-
|
|
|
|
(6)
|
|
|
|
-
|
|
Net finance income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
|
2,282
|
|
|
|
1,361
|
|
|
|
2,437
|
|
|
|
6,723
|
|
Finance
expense
|
|
|
(15,341)
|
|
|
|
(80)
|
|
|
|
(25,288)
|
|
|
|
(453)
|
|
Net foreign exchange
gain (loss)
|
|
|
(276)
|
|
|
|
869
|
|
|
|
(648)
|
|
|
|
676
|
|
Net finance income
(expense)
|
|
|
(13,334)
|
|
|
|
2,150
|
|
|
|
(23,498)
|
|
|
|
6,946
|
|
Profit (loss) before
income taxes
|
|
|
(2,094)
|
|
|
|
14,684
|
|
|
|
(10,922)
|
|
|
|
33,431
|
|
Income tax (expense)
benefit
|
|
|
(3,742)
|
|
|
|
(1,148)
|
|
|
|
(4,350)
|
|
|
|
(4,416)
|
|
Net income (loss)
attributable to owners of the parent
|
|
$
|
(5,836)
|
|
|
$
|
13,537
|
|
|
$
|
(15,271)
|
|
|
$
|
29,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, ADS
equivalent
|
|
|
114.75
|
|
|
|
89.90
|
|
|
|
115.28
|
|
|
|
89.84
|
|
Diluted, ADS
equivalent
|
|
|
114.75
|
|
|
|
91.31
|
|
|
|
115.28
|
|
|
|
91.20
|
|
Basic, ordinary
shares
|
|
|
229.50
|
|
|
|
179.79
|
|
|
|
230.56
|
|
|
|
179.68
|
|
Diluted, ordinary
shares
|
|
|
229.50
|
|
|
|
182.63
|
|
|
|
230.56
|
|
|
|
182.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS and
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
ADS
|
|
$
|
(0.05)
|
|
|
$
|
0.15
|
|
|
$
|
(0.13)
|
|
|
$
|
0.32
|
|
Diluted earnings per
ADS
|
|
$
|
(0.05)
|
|
|
$
|
0.15
|
|
|
$
|
(0.13)
|
|
|
$
|
0.32
|
|
Basic earnings per
ordinary share
|
|
$
|
(0.03)
|
|
|
$
|
0.08
|
|
|
$
|
(0.07)
|
|
|
$
|
0.16
|
|
Diluted earnings per
ordinary share
|
|
$
|
(0.03)
|
|
|
$
|
0.07
|
|
|
$
|
(0.07)
|
|
|
$
|
0.16
|
|
Opera
Limited
Consolidated Statement of Comprehensive Income
(In thousands, unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Net income
(loss)
|
|
$
|
(5,836)
|
|
|
$
|
13,537
|
|
|
$
|
(15,271)
|
|
|
$
|
29,015
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to the statement of operations in subsequent periods
(net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences
on translation of foreign operations
|
|
|
(2,073)
|
|
|
|
(1,219)
|
|
|
|
(2,841)
|
|
|
|
(1,167)
|
|
Reclassification of
share of other comprehensive income (loss) of equity-accounted
investees
|
|
|
-
|
|
|
|
-
|
|
|
|
708
|
|
|
|
-
|
|
Other comprehensive
income (loss)
|
|
|
(2,073)
|
|
|
|
(1,219)
|
|
|
|
(2,133)
|
|
|
|
(1,167)
|
|
Total comprehensive
income (loss) attributable to owners of the parent
|
|
$
|
(7,908)
|
|
|
$
|
12,318
|
|
|
$
|
(17,403)
|
|
|
$
|
27,848
|
|
Opera Limited
|
Consolidated Statement of Financial
Position
|
(In thousands,
unaudited)
|
|
|
|
|
As of December
31,
|
|
|
As of June
30,
|
|
|
|
2022
|
|
|
2023
|
|
Assets:
|
|
|
|
|
|
|
|
|
Property and
equipment
|
|
$
|
14,623
|
|
|
$
|
13,852
|
|
Intangible
assets
|
|
|
99,983
|
|
|
|
98,781
|
|
Goodwill
|
|
|
429,445
|
|
|
|
429,836
|
|
Non-current
receivables from sale of investments
|
|
|
76,305
|
|
|
|
7,545
|
|
Non-current
investments and financial assets
|
|
|
2,643
|
|
|
|
2,589
|
|
Deferred tax
assets
|
|
|
1,473
|
|
|
|
1,393
|
|
Total non-current
assets
|
|
|
624,473
|
|
|
|
553,997
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables
|
|
|
57,923
|
|
|
|
55,270
|
|
Current receivables
from sale of investments
|
|
|
56,347
|
|
|
|
24,545
|
|
Other current
receivables
|
|
|
17,247
|
|
|
|
4,869
|
|
Prepayments
|
|
|
3,932
|
|
|
|
8,245
|
|
Marketable
securities
|
|
|
66,250
|
|
|
|
-
|
|
Cash and cash
equivalents
|
|
|
52,414
|
|
|
|
98,155
|
|
Total cash, cash
equivalents, and marketable securities
|
|
|
118,664
|
|
|
|
98,155
|
|
Assets held for
sale
|
|
|
86,100
|
|
|
|
163,462
|
|
Total current
assets
|
|
|
340,213
|
|
|
|
354,546
|
|
Total
assets
|
|
$
|
964,686
|
|
|
$
|
908,543
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Share
capital
|
|
$
|
18
|
|
|
$
|
18
|
|
Other paid in
capital
|
|
|
824,832
|
|
|
|
824,832
|
|
Treasury
shares
|
|
|
(206,514)
|
|
|
|
(208,584)
|
|
Retained
earnings
|
|
|
273,262
|
|
|
|
204,780
|
|
Foreign currency
translation reserve
|
|
|
(3,385)
|
|
|
|
(4,553)
|
|
Total equity
attributable to owners of the parent
|
|
|
888,213
|
|
|
|
816,493
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Non-current lease
liabilities and other loans
|
|
|
4,723
|
|
|
|
5,273
|
|
Deferred tax
liabilities
|
|
|
7,352
|
|
|
|
4,207
|
|
Other non-current
liabilities
|
|
|
68
|
|
|
|
59
|
|
Total non-current
liabilities
|
|
|
12,143
|
|
|
|
9,539
|
|
|
|
|
|
|
|
|
|
|
Trade and other
payables
|
|
|
46,937
|
|
|
|
47,242
|
|
Deferred
revenue
|
|
|
995
|
|
|
|
4,845
|
|
Dividends
payable
|
|
|
-
|
|
|
|
10,832
|
|
Current lease
liabilities and other loans
|
|
|
3,112
|
|
|
|
2,787
|
|
Income tax
payable
|
|
|
1,133
|
|
|
|
6,228
|
|
Other current
liabilities
|
|
|
12,152
|
|
|
|
10,578
|
|
Total current
liabilities
|
|
|
64,330
|
|
|
|
82,511
|
|
Total
liabilities
|
|
|
76,472
|
|
|
|
92,050
|
|
Total equity and
liabilities
|
|
$
|
964,686
|
|
|
$
|
908,543
|
|
Opera
Limited
Consolidated Statement of Changes in Equity
(In thousands, except number of shares, unaudited)
|
|
For the six months
ended June 30, 2022:
|
|
|
|
Number of shares
outstanding
|
|
|
Equity attributable
to owners of the parent
|
|
|
|
Ordinary
shares
|
|
|
ADS
equivalent
|
|
|
Share
capital
|
|
|
Other paid in
capital
|
|
|
Treasury
shares
|
|
|
Retained
earnings
|
|
|
Foreign currency
translation reserve
|
|
|
Total
equity
|
|
As of January 1,
2022
|
|
|
230,291,732
|
|
|
|
115,145,866
|
|
|
$
|
24
|
|
|
$
|
824,832
|
|
|
$
|
(60,453)
|
|
|
$
|
249,155
|
|
|
$
|
(520)
|
|
|
$
|
1,013,039
|
|
Net income
(loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,271)
|
|
|
|
-
|
|
|
|
(15,271)
|
|
Other comprehensive
income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,133)
|
|
|
|
(2,133)
|
|
Share-based
remuneration
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,487
|
|
|
|
-
|
|
|
|
3,487
|
|
Issuance of shares
upon exercise of RSUs and options
|
|
|
1,597,500
|
|
|
|
798,750
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Acquisition of
treasury shares
|
|
|
(3,649,220)
|
|
|
|
(1,824,610)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,868)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,868)
|
|
As of June 30,
2022
|
|
|
228,240,012
|
|
|
|
114,120,006
|
|
|
$
|
24
|
|
|
$
|
824,832
|
|
|
$
|
(70,321)
|
|
|
$
|
237,371
|
|
|
$
|
(2,653)
|
|
|
$
|
989,254
|
|
|
For the six months
ended June 30, 2023:
|
|
|
|
Number of shares
outstanding
|
|
|
Equity attributable
to owners of the parent
|
|
|
|
Ordinary
shares
|
|
|
ADS
equivalent
|
|
|
Share
capital
|
|
|
Other paid in
capital
|
|
|
Treasury
shares
|
|
|
Retained
earnings
|
|
|
Foreign currency
translation reserve
|
|
|
Total
equity
|
|
As of January 1,
2023
|
|
|
178,430,242
|
|
|
|
89,215,121
|
|
|
$
|
18
|
|
|
$
|
824,832
|
|
|
$
|
(206,514)
|
|
|
$
|
273,263
|
|
|
$
|
(3,385)
|
|
|
$
|
888,213
|
|
Net income
(loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,015
|
|
|
|
-
|
|
|
|
29,015
|
|
Other comprehensive
income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,167)
|
|
|
|
(1,167)
|
|
Share-based
remuneration, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,724
|
|
|
|
-
|
|
|
|
9,724
|
|
Issuance of shares
upon exercise of RSUs and options
|
|
|
2,137,018
|
|
|
|
1,068,509
|
|
|
|
-
|
|
|
|
-
|
|
|
|
394
|
|
|
|
-
|
|
|
|
-
|
|
|
|
394
|
|
Dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(107,222)
|
|
|
|
-
|
|
|
|
(107,222)
|
|
Acquisition of
treasury shares
|
|
|
(740,324)
|
|
|
|
(370,162)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,464)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,464)
|
|
As of June 30,
2023
|
|
|
179,826,936
|
|
|
|
89,913,468
|
|
|
$
|
18
|
|
|
$
|
824,832
|
|
|
$
|
(208,584)
|
|
|
$
|
204,780
|
|
|
$
|
(4,553)
|
|
|
$
|
816,493
|
|
Opera
Limited
Consolidated Statement of Cash Flows
(In thousands, unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) before
income taxes
|
|
$
|
(2,094)
|
|
|
$
|
14,684
|
|
|
$
|
(10,922)
|
|
|
$
|
33,431
|
|
Adjustments to
reconcile profit (loss) before income taxes to net cash
flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment
expense
|
|
|
1,520
|
|
|
|
3,741
|
|
|
|
3,487
|
|
|
|
7,174
|
|
Depreciation and
amortization
|
|
|
3,421
|
|
|
|
3,356
|
|
|
|
7,011
|
|
|
|
6,735
|
|
Share of net loss of
equity-accounted investees
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
Net finance (income)
expense
|
|
|
13,334
|
|
|
|
(2,150)
|
|
|
|
23,498
|
|
|
|
(6,946)
|
|
Other
adjustments
|
|
|
(265)
|
|
|
|
543
|
|
|
|
(747)
|
|
|
|
209
|
|
Changes in working
capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in trade and
other receivables
|
|
|
(6,029)
|
|
|
|
(3,955)
|
|
|
|
(5,318)
|
|
|
|
2,385
|
|
Change in
prepayments
|
|
|
41
|
|
|
|
(404)
|
|
|
|
550
|
|
|
|
(414)
|
|
Change in
inventories
|
|
|
(113)
|
|
|
|
103
|
|
|
|
(699)
|
|
|
|
(349)
|
|
Change in trade and
other payables
|
|
|
(9,164)
|
|
|
|
4,381
|
|
|
|
374
|
|
|
|
305
|
|
Change in deferred
revenue
|
|
|
(727)
|
|
|
|
(2,126)
|
|
|
|
776
|
|
|
|
3,850
|
|
Change in other
liabilities
|
|
|
2,176
|
|
|
|
744
|
|
|
|
(3,158)
|
|
|
|
(1,584)
|
|
Income taxes (paid)
received
|
|
|
(477)
|
|
|
|
(3,397)
|
|
|
|
230
|
|
|
|
(3,552)
|
|
Net cash flow from
(used in) operating activities
|
|
|
1,624
|
|
|
|
15,517
|
|
|
|
15,088
|
|
|
|
41,244
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
equipment
|
|
|
(2,477)
|
|
|
|
(219)
|
|
|
|
(2,593)
|
|
|
|
(537)
|
|
Development
expenditure
|
|
|
(2,081)
|
|
|
|
(1,048)
|
|
|
|
(2,923)
|
|
|
|
(2,114)
|
|
Proceeds from sale of
shares in former associates
|
|
|
32,879
|
|
|
|
-
|
|
|
|
32,879
|
|
|
|
-
|
|
Net sale (purchase) of
listed equity instruments
|
|
|
247
|
|
|
|
-
|
|
|
|
7,044
|
|
|
|
23,414
|
|
Interest income
received
|
|
|
31
|
|
|
|
879
|
|
|
|
33
|
|
|
|
1,433
|
|
Net cash flow from
(used in) investing activities
|
|
|
28,600
|
|
|
|
(389)
|
|
|
|
34,441
|
|
|
|
22,194
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
treasury shares
|
|
|
(6,823)
|
|
|
|
-
|
|
|
|
(9,868)
|
|
|
|
(2,464)
|
|
Proceeds from exercise
of share options
|
|
|
-
|
|
|
|
394
|
|
|
|
-
|
|
|
|
394
|
|
Dividends
paid
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,273)
|
|
Interests on loans and
borrowings
|
|
|
(34)
|
|
|
|
(80)
|
|
|
|
(103)
|
|
|
|
(151)
|
|
Repayment of loans and
borrowings
|
|
|
(96)
|
|
|
|
(86)
|
|
|
|
(184)
|
|
|
|
(158)
|
|
Payment of lease
liabilities
|
|
|
(1,040)
|
|
|
|
(1,034)
|
|
|
|
(2,036)
|
|
|
|
(2,059)
|
|
Net cash flow from
(used in) financing activities
|
|
|
(7,992)
|
|
|
|
(806)
|
|
|
|
(12,192)
|
|
|
|
(16,711)
|
|
Net change in cash and
cash equivalents
|
|
|
22,231
|
|
|
|
14,323
|
|
|
|
37,338
|
|
|
|
46,728
|
|
Cash and cash
equivalents at beginning of period
|
|
|
117,786
|
|
|
|
84,842
|
|
|
|
102,876
|
|
|
|
52,414
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(616)
|
|
|
|
(1,010)
|
|
|
|
(815)
|
|
|
|
(987)
|
|
Cash and cash
equivalents at end of period
|
|
$
|
139,400
|
|
|
$
|
98,155
|
|
|
$
|
139,400
|
|
|
$
|
98,155
|
|
Opera Limited
Supplemental Financial Information (In thousands,
unaudited)
|
|
Revenue
|
|
The table below
specifies the amounts of the different types of revenue:
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Advertising
|
|
$
|
43,085
|
|
|
$
|
53,828
|
|
|
$
|
81,535
|
|
|
$
|
102,347
|
|
Search
|
|
|
33,734
|
|
|
|
38,856
|
|
|
|
65,760
|
|
|
|
76,644
|
|
Technology licensing
and other revenue
|
|
|
1,016
|
|
|
|
1,450
|
|
|
|
2,122
|
|
|
|
2,194
|
|
Total
revenue
|
|
$
|
77,834
|
|
|
$
|
94,134
|
|
|
$
|
149,417
|
|
|
$
|
181,185
|
|
Personnel Expenses
Including Share-based Remuneration
|
|
The table below
specifies the amounts of personnel expenses including share-based
remuneration:
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Personnel expenses,
excluding share-based remuneration
|
|
$
|
17,593
|
|
|
$
|
16,744
|
|
|
$
|
32,140
|
|
|
$
|
32,260
|
|
Share-based
remuneration, including related social security costs
(1)
|
|
|
1,477
|
|
|
|
4,626
|
|
|
|
3,359
|
|
|
|
9,163
|
|
Total personnel
expenses including share-based remuneration
|
|
$
|
19,071
|
|
|
$
|
21,370
|
|
|
$
|
35,499
|
|
|
$
|
41,423
|
|
|
(1) Kunlun, the
ultimate parent of Opera, has granted options to employees of Opera
as compensation for services these employees provide to Opera.
Opera does not have any obligation to settle the awards granted by
Kunlun and such grants do not lead to dilution for Opera's
shareholders. In the second quarter of 2023, Opera recognized $2.1
million as share-based remuneration expense related to these
awards. For the six months ended June 30, 2023, the expensed amount
was $2.7 million. In the comparative periods of 2022, Opera did not
recognize any expense related to the Kunlun awards.
|
Other Operating
Expenses
|
|
The table below
specifies the nature of other operating expenses:
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Hosting
|
|
$
|
2,288
|
|
|
$
|
2,548
|
|
|
$
|
4,526
|
|
|
$
|
5,032
|
|
Audit, legal and other
advisory services
|
|
|
1,489
|
|
|
|
1,994
|
|
|
|
4,491
|
|
|
|
3,237
|
|
Software license
fees
|
|
|
494
|
|
|
|
914
|
|
|
|
964
|
|
|
|
1,467
|
|
Rent and other office
expenses
|
|
|
1,008
|
|
|
|
607
|
|
|
|
1,891
|
|
|
|
1,226
|
|
Travel
|
|
|
422
|
|
|
|
442
|
|
|
|
572
|
|
|
|
870
|
|
Other
|
|
|
776
|
|
|
|
809
|
|
|
|
1,490
|
|
|
|
1,589
|
|
Total other
operating expenses
|
|
$
|
6,477
|
|
|
$
|
7,315
|
|
|
$
|
13,933
|
|
|
$
|
13,422
|
|
Opera
Limited
Reconciliations of Non-IFRS Financial Measures
(In thousands, unaudited)
|
|
The table below
reconciles net income (loss) to adjusted EBITDA:
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Net income
(loss)
|
|
$
|
(5,836)
|
|
|
$
|
13,537
|
|
|
$
|
(15,271)
|
|
|
$
|
29,015
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
3,742
|
|
|
|
1,148
|
|
|
|
4,350
|
|
|
|
4,416
|
|
Net finance expense
(income)
|
|
|
13,334
|
|
|
|
(2,150)
|
|
|
|
23,498
|
|
|
|
(6,946)
|
|
Share of net loss of
equity-accounted investees
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
3,421
|
|
|
|
3,356
|
|
|
|
7,011
|
|
|
|
6,735
|
|
Share-based
remuneration, including related social security costs
|
|
|
1,477
|
|
|
|
4,626
|
|
|
|
3,359
|
|
|
|
9,163
|
|
Non-recurring
expenses
|
|
|
500
|
|
|
|
-
|
|
|
|
1,208
|
|
|
|
-
|
|
Other operating
income
|
|
|
(70)
|
|
|
|
(51)
|
|
|
|
(242)
|
|
|
|
(180)
|
|
Adjusted
EBITDA
|
|
$
|
16,569
|
|
|
$
|
20,466
|
|
|
$
|
23,918
|
|
|
$
|
42,204
|
|
The table below
reconciles net cash flow from operating activities to free cash
flow from operations:
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Net cash flow from
operating activities
|
|
$
|
1,624
|
|
|
$
|
15,517
|
|
|
$
|
15,088
|
|
|
$
|
41,244
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
equipment
|
|
|
(2,477)
|
|
|
|
(219)
|
|
|
|
(2,593)
|
|
|
|
(537)
|
|
Development
expenditure
|
|
|
(2,081)
|
|
|
|
(1,048)
|
|
|
|
(2,923)
|
|
|
|
(2,114)
|
|
Payment of lease
liabilities
|
|
|
(1,040)
|
|
|
|
(1,034)
|
|
|
|
(2,036)
|
|
|
|
(2,059)
|
|
Free cash flow from
operations
|
|
$
|
(3,974)
|
|
|
$
|
13,216
|
|
|
$
|
7,536
|
|
|
$
|
36,533
|
|
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SOURCE Opera Limited