Opera Limited (Nasdaq: OPRA) (“Opera”), one of the world’s leading
browser providers and an influential player in the field of
integrated AI-driven digital content discovery and recommendation
platforms, today announced its unaudited consolidated financial
results for the third quarter ended September 30, 2018.
Third quarter 2018 financial highlights
- Operating revenue reached $44.7 million, a year-over-year
increase of 17.4%, or 40.1% when excluding the “technology
licensing and other” revenue category.
- Net income was $9.7 million, representing a net margin of
21.8%, compared to a net income of $7.5 million in the third
quarter of 2017, or a net margin of 19.8%.
- Adjusted EBITDA1 was $16.5 million, representing an adjusted
EBITDA margin of 36.9%, compared to $14.5 million in the third
quarter of 2017, or an adjusted net margin of 38.1%.
- Adjusted net income1 was $12.5 million, representing an
adjusted net margin of 28.0%. Adjusted net income per ADS was
$0.12. Adjusted net income was $11.7 million in the third quarter
of 2017, or an adjusted net margin of 30.8%.
Third quarter 2017 results included $5.5 million of other income
associated with the divestment of certain intellectual property and
$6.4 million of licensing revenue associated with a related
technology license agreement. As a result, relative to full-year
2017 values, the third quarter of 2017 represented 104% of
operating profit and 124% of net income, as well as 42% of adjusted
EBITDA and 66% of adjusted net income.
(1) Please see the separate section “About non-IFRS financial
measures” for details on adjusted EBITDA and adjusted net
income.
Third quarter 2018 user base highlights
- Opera News average Monthly Active Users (“ MAUs”) was 121.4
million (+209.2% year-over-year).
- The dedicated Opera News app, launched in January 2018, reached
17.4 million average MAUs.
- Total smartphone MAUs reached an average 195.4 million (+14.0%
year-over-year).
- Total PC MAUs reached an average 58.4 million (+18.3%
year-over-year).
“We are excited to report another record quarter for both
revenue and profits, as well as all-time highs for both smartphone
and PC users,” Mr. Yahui Zhou, Opera’s Chairman and CEO, stated.
“We are successfully executing on our strategy to build new and
engaging services and offerings on top of our existing assets. We
continue to focus our growth efforts on Africa, where our strong
technology platform positions us on an attractive trajectory on top
of compelling macro trends.”
“Our top priority remains the continued growth of our AI-based
content platform, Opera News, which added over 20 million users in
the quarter. Further, we recently announced an investment in the
fast-growing social music community StarMaker, where Opera also
holds an option to acquire a majority ownership in the future. This
broadens our content play to include a platform with highly engaged
users that are consuming significant amounts of mobile music
content. At the same time, we are positioning Opera for additional
growth opportunities. Our affiliate, OPay, a platform for mobile
money, microcredit and e-commerce, grew daily transaction volumes
from zero to over $200,000 within the third quarter, and again
nearly tripled that towards $700,000 per day by the end of October.
In this context, we have also taken steps towards related retailing
opportunities, starting with prepaid airtime and data. Airtime and
data are interesting in the payment context because of a near
currency-like function in many regions.”
Mr. Lin Song, Opera’s COO, highlighted, “We remain dedicated to
lead and attract users by feature-rich products and to stay at the
forefront of innovation. During the third quarter, we announced
exciting new features, including a cryptocurrency wallet for our
mobile and PC browsers. Recently, we also released the innovative
Opera Touch browser for iPhones, making our portfolio of
applications more complete. Further, distribution through our first
mobile OEM partners for the dedicated Opera News app started
reaching scale in the quarter, and we leveraged the FIFA World Cup
to continue raising market awareness. The result was an increase in
our quarterly average smartphone user base by over 13.2 million
MAUs (up 7.3% versus prior quarter average), with continued strong
adoption of Opera News both among our browser users and for the
dedicated app.”
Mr. Frode Jacobsen, Opera’s CFO, said, “We delivered a strong
third quarter with record results across all key metrics. We remain
focused on our revenue growth opportunity, believing we are still
in the early stages of capturing our monetization potential. Our
levers include optimizing the ad load and ad unit formats as well
as inventory allocation, and also initiating monetization of the
dedicated Opera News app, which we expect before the end of the
fourth quarter.”
“We further strengthened our balance sheet following our IPO and
concurrent private placements (CPPs) in the third quarter,
resulting in $167.2 million of net proceeds after transaction
costs. We offered 19.2 million shares in the IPO, and our
underwriters chose to purchase an additional 0.67 million shares.
This totaled 19.87 million new shares, corresponding to 9.93
million ADSs that were sold at $12.0 each. In addition, we sold
10.0 million shares in the CPPs at the same valuation.”
Share repurchase program
Opera today announced that its board of directors has approved a
corporate share repurchase program of up to 1.5 million ADSs to be
purchased on the open market, commencing on Monday, November 12,
2018.
“Since our IPO, we have observed a decline in our share price,
which in our view is not related to the performance of our business
nor the prospects for our company”, said Mr. Jacobsen. “As a
result, our board of directors has decided to initiate a share
repurchase program, underscoring our commitment to delivering
returns for our shareholders.”
Investment in StarMaker
On November 5, 2018, Opera announced a $30 million strategic
investment in StarMaker, a fast-growing and technology-driven
social media company focused on music and entertainment. StarMaker
enables users to record and share their own music videos,
collaborate with other musicians, connect with other users and
follow their idols on the social platform.
Key highlights of StarMaker include:
- 11 million MAUs, with an average daily time spend of 50
minutes.
- 2018 quarterly revenues have increased 110% year-to-date.
- Emerging market footprint similar to Opera, ranking the #1
singing app in India and top-2 across the Middle East and
Indonesia.
“Starmaker is on a great trajectory towards becoming a
substantial and highly valuable social platform centered around
music”, said Mr. Song. “Opera’s cash investment will support the
company’s continued investment in growth, and in parallel we see
mutually beneficial opportunities for collaboration. Opera invested
at a valuation of $125 million, corresponding to an attractive
multiple on 2019 revenue expectations, and maintains a combination
of flexibility and protection through an option to take a
controlling ownership stake paired with guarantees and rights tied
to our preferred shares.”
Third quarter 2018 consolidated financial
results
All comparisons in the following are relative to the third
quarter of 2017 unless otherwise stated.
Operating revenue overall increased 17.4% to
$44.7 million
- Search revenue increased 12.3% to $19.1 million, driven by an
increase in average revenue per qualified search following improved
monetization by our search partners.
- Advertising revenue increased 56.8% to $17.6 million. The
substantial lift follows the commencement of direct sales
advertising campaigns on our Opera News inventory, as well as the
continued increase in the associated user base, and a continuation
of our ability to help e-commerce and other partners grow their
revenues from which we collect a revenue share.
- Retail revenue was $2.9 million in this first quarter of
material activity. Our focus has been to start building scale
within the area of prepaid airtime and data, retailed to local
consumers and wholesalers. At the current stage and volume, the
activity does not produce a profit contribution, but represents an
area that may scale substantially at improved margins and form a
basis for a wider retail opportunity.
- Technology licensing and other revenue decreased 48.0% to $5.1
million. This revenue category is volatile in nature, as it largely
follows the timing of underlying support and licensing agreements,
and the third quarter of 2017 represented an extraordinary quarter
in terms of such agreements.
Operating expenses totaled $32.8 million,
representing 0.0% change year-over-year. Operating expenses
represented 73.5% of operating revenue in the third quarter 2018,
compared to 86.3% in the third quarter 2017.
- Payouts to publishers and monetization partners were $5.5
million, compared to $0.4 million in the third quarter 2017. This
category is growing as the monetization of our user base evolves,
with both content and service partnerships supporting the growth,
as well as the introduction of retail revenue in the current
quarter that does not initially generate a positive margin.
- Personnel expenses were $9.4 million, a 24.7% decline. This
consisted of cash-based compensation expense of $8.6 million, a
4.7% decrease, and share-based remuneration expense of $0.8
million, a 77.8% decrease from $3.4 million in the third quarter
2017. The reduction in share-based remuneration was related to a
reduction in accrued social security cost following the share price
decline in the quarter and a specific country adjustment, and the
fact that share-based remuneration expense was elevated in 2017
because it was the first year of a new employee Restricted Share
Unit program.
- Depreciation and amortization expenses were $3.1 million, a
38.8% decrease. The decline is largely the result of equipment in
use that is fully depreciated.
- Other operating expenses were $14.9 million, a 5.3% increase.
The increase was primarily due to audit, legal and other advisory
services during our IPO preparations, totaling $1.9 million in the
quarter, which were 134.1% higher than the third quarter 2017. The
other expenses in the category, including marketing and
distribution, hosting, office and rent, software license fees,
travel and other, totaled $13.0 million, a decrease of 2.4%.
- Restructuring cost was zero, compared with $0.9 million in the
third quarter 2017.
Operating profit reached $11.8 million in the
quarter, representing an operating margin of 26.5%, compared to a
$10.7 million operating profit in the third quarter 2017,
representing a 28.1% margin.
Income tax expense was $1.0 million in the
quarter, compared to $1.6 million in the third quarter 2017. Our
effective tax rate was 9.1% in the third quarter of 2018, lowered
by tax provision adjustments as local filings have been
completed.
Net income was $9.7 million in the quarter,
compared to $7.5 million in the third quarter of 2017.
Net income per ADS was $0.093 in the quarter,
and $0.090 on a diluted basis. Adjusted net income per
ADS was $0.119 in the quarter, and $0.115 on a diluted
basis. Each ADS represents two shares in Opera Limited.
Adjusted EBITDA was $16.5 million in the third
quarter 2018, representing a 36.9% adjusted EBITDA margin. In the
third quarter of 2017, adjusted EBITDA was $14.5 million,
representing a 38.1% margin. Adjusted EBITDA excludes share-based
remuneration, restructuring charges, and expensed IPO related costs
of audit, legal and other advisory services.
Adjusted Net Income was $12.5 million in the
third quarter 2018, representing a 28.0% adjusted net margin. In
the third quarter of 2017, adjusted net income was $11.7 million,
representing a 30.8% margin. Adjusted net income excludes
share-based remuneration, amortization of intangible assets related
to acquisitions (all of which relates to the Opera privatization in
2016), and expensed IPO related costs. Adjusted net income further
includes partially offsetting reversals of the tax impacts of the
foregoing three adjustments.
Business outlook
We expect fourth quarter 2018 revenue of $48-52 million, with
the mid-point representing a 29% year-over-year growth rate. As a
result, we are raising our 2018 full-year revenue guidance to a
range of $172-176 million (versus $170-175 million in our previous
guidance).
Looking beyond the next quarter, we continue to be excited about
the growth prospects for the business and comfortably expect to
sustain growth rates comparable to the fourth quarter 2018. We
benefit from a business model that enables us to carefully manage
our performance based on our goals. As such, we plan to continue
investing in our business, which we believe will build a foundation
for long-term margin expansion.
About non-IFRS financial measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with IFRS, we use adjusted
EBITDA and adjusted net income, both non-IFRS financial measures,
to understand and evaluate our core operating performance. These
non-IFRS financial measures, which may differ from similarly titled
measures used by other companies, are presented to enhance
investors’ overall understanding of our financial performance and
should not be considered a substitute for, or superior to, the
financial information prepared and presented in accordance with
IFRS.
We define adjusted EBITDA as net income (loss) excluding income
tax expense (benefit), total net financial loss (income), share of
net loss (income) of associates and joint ventures, restructuring
costs, depreciation and amortization, share-based remuneration and
expensed costs related to our recent initial public offering, less
other income.
We define adjusted net income as net income excluding
share-based remuneration, amortization cost related to acquired
intangible assets, and expensed costs related to our recent initial
public offering, net of the reversal of tax impacts related to such
adjustments.
We believe that adjusted EBITDA and adjusted net income provide
useful information to investors and others in understanding and
evaluating our operating results. These non-IFRS financial measures
adjust for the impact of items that we do not consider indicative
of the operational performance of our business. While we believe
that these non-IFRS financial measures are useful in evaluating our
business, this information should be considered as supplemental in
nature and is not meant as a substitute for the related financial
information prepared and presented in accordance with IFRS.
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,”
“expects,” “believes,” “anticipates,” “intends,” “estimates” and
similar statements. Among other things, management’s quotations and
the Business outlook section contain forward-looking statements.
These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations,
assumptions, estimates and projections about Opera and the
industry. Potential risks and uncertainties include, but are not
limited to, those relating to its goals and strategies; its
expected development and launch, and market acceptance, of its
products and services; its expectations regarding demand for and
market acceptance of our brand, platforms and services; our
expectations regarding growth in our user base and level of
engagement; its ability to attract, retain and monetize users; its
ability to continue to develop new technologies and/or upgrade our
existing technologies and quarterly variations in its operating
results caused by factors beyond its control and global
macroeconomic conditions and its potential impact in the markets it
has businesses. All information provided in this press release is
as of the date hereof, and Opera 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 Opera 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 Opera’s filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form F-1 filed
in connection with its initial public offering.
Conference call
Opera’s management team will host a conference call at 8:00 AM
U.S. Eastern Time (2:00 PM Central European Time, 9:00 PM
Beijing/Hong Kong time) on Thursday, November 8, 2018.
The dial-in details for the live conference call are:
United States: +1 (877) 506-7703China: +86 400 682 8609 Hong
Kong: +852 3011 4522 Norway: +47 2231 0524 United Kingdom: +44
(0)203 107 0289International: +1 (786) 815-8450
Confirmation Code: 7632999
The recorded conference call will be available on the Investor
Relations section of Opera’s website at
https://investor.opera.com.
About Opera
Founded in 1995 in Norway, Opera is one of the world’s leading
browser providers and an influential player in the field of
integrated AI-driven digital content discovery and recommendation
platforms.
Investor Relations Contact:Allise
Furlaniinvestor-relations@opera.com or 212-331-8433
For media enquiries, please contact: press-team@opera.com
|
|
OPERA LIMITED |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands, except per share amounts] |
|
Q3-2017(Unaudited) |
|
|
Q3-2018(Unaudited) |
|
|
YTD
2017(Unaudited) |
|
|
YTD
2018(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenue and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue |
|
|
38,057 |
|
|
|
44,667 |
|
|
|
90,023 |
|
|
|
123,941 |
|
Other income |
|
|
5,460 |
|
|
|
- |
|
|
|
5,460 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payouts to publishers
and monetization partners |
|
|
(411 |
) |
|
|
(5,535 |
) |
|
|
(622 |
) |
|
|
(7,613 |
) |
Personnel expenses
including share-based remuneration |
|
|
(12,459 |
) |
|
|
(9,378 |
) |
|
|
(32,330 |
) |
|
|
(29,844 |
) |
Depreciation and
amortization |
|
|
(4,984 |
) |
|
|
(3,051 |
) |
|
|
(12,390 |
) |
|
|
(9,817 |
) |
Other operating
expenses |
|
|
(14,118 |
) |
|
|
(14,863 |
) |
|
|
(38,224 |
) |
|
|
(44,580 |
) |
Restructuring
costs |
|
|
(863 |
) |
|
|
- |
|
|
|
(2,974 |
) |
|
|
- |
|
Total operating
expenses |
|
|
(32,835 |
) |
|
|
(32,826 |
) |
|
|
(86,539 |
) |
|
|
(91,855 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit |
|
|
10,683 |
|
|
|
11,841 |
|
|
|
8,944 |
|
|
|
32,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net income
(loss) of associates and joint ventures |
|
|
(382 |
) |
|
|
(1,757 |
) |
|
|
(956 |
) |
|
|
(3,381 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financial
income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income |
|
|
13 |
|
|
|
629 |
|
|
|
35 |
|
|
|
827 |
|
Financial expense |
|
|
(31 |
) |
|
|
(54 |
) |
|
|
(233 |
) |
|
|
(131 |
) |
Net foreign exchange
gains (losses) |
|
|
(1,137 |
) |
|
|
28 |
|
|
|
(426 |
) |
|
|
140 |
|
Total net
financial income (loss) |
|
|
(1,155 |
) |
|
|
603 |
|
|
|
(624 |
) |
|
|
836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
before income taxes |
|
|
9,146 |
|
|
|
10,687 |
|
|
|
7,365 |
|
|
|
29,541 |
|
Income tax (expense)
benefit |
|
|
(1,615 |
) |
|
|
(970 |
) |
|
|
(2,553 |
) |
|
|
(5,794 |
) |
Net
income |
|
|
7,531 |
|
|
|
9,717 |
|
|
|
4,812 |
|
|
|
23,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
parent |
|
|
7,531 |
|
|
|
9,717 |
|
|
|
4,812 |
|
|
|
23,747 |
|
Non-controlling
interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
attributed |
|
|
7,531 |
|
|
|
9,717 |
|
|
|
4,812 |
|
|
|
23,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, millions(1) |
|
|
190.25 |
|
|
|
209.99 |
|
|
|
190.25 |
|
|
|
196.83 |
|
Diluted,
millions(2) |
|
|
193.69 |
|
|
|
216.82 |
|
|
|
192.05 |
|
|
|
202.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, US$ |
|
|
0.040 |
|
|
|
0.046 |
|
|
|
0.025 |
|
|
|
0.121 |
|
Diluted, US$ |
|
|
0.039 |
|
|
|
0.045 |
|
|
|
0.025 |
|
|
|
0.117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, US$ |
|
|
0.079 |
|
|
|
0.093 |
|
|
|
0.051 |
|
|
|
0.241 |
|
Diluted, US$ |
|
|
0.078 |
|
|
|
0.090 |
|
|
|
0.050 |
|
|
|
0.234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Assumes
200 million shares in Opera Limited were outstanding for all
periods presented prior to the Initial Public Offering (IPO), less
9.75 million shares that were surrendered by two shareholders upon
completion of the IPO. As of 30 September 2018, the total number of
shares outstanding for Opera Limited was 220,119,343. |
(2) |
|
Includes
the net dilutive impact of employee equity awards, all of which are
dilutive. |
|
|
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF TOTAL
COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands] |
|
Q3-2017(Unaudited) |
|
|
Q3-2018(Unaudited) |
|
|
YTD
2017(Unaudited) |
|
|
YTD
2018(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7,531 |
|
|
|
9,717 |
|
|
|
4,812 |
|
|
|
23,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on
translation of foreign operations |
|
|
177 |
|
|
|
(177 |
) |
|
|
1,659 |
|
|
|
(1,273 |
) |
Amounts to be
reclassified from other comprehensive income to statement of
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(138 |
) |
Other
comprehensive income – items that may be reclassified to net
income |
|
|
177 |
|
|
|
(177 |
) |
|
|
1,659 |
|
|
|
(1,411 |
) |
Total
comprehensive income |
|
|
7,708 |
|
|
|
9,541 |
|
|
|
6,471 |
|
|
|
22,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
parent |
|
|
7,708 |
|
|
|
9,541 |
|
|
|
6,471 |
|
|
|
22,336 |
|
Non-controlling
interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
attributed |
|
|
7,708 |
|
|
|
9,541 |
|
|
|
6,471 |
|
|
|
22,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION |
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands] |
|
As ofSeptember 30,
2017(Unaudited) |
|
|
As ofDecember 31,
2017(Unaudited) |
|
|
As ofSeptember 30,
2018(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Furniture, fixtures and equipment |
|
|
12,744 |
|
|
|
13,460 |
|
|
|
12,396 |
|
Intangible assets |
|
|
120,659 |
|
|
|
118,620 |
|
|
|
116,470 |
|
Goodwill |
|
|
421,578 |
|
|
|
421,578 |
|
|
|
421,578 |
|
Investments in associates and joint ventures |
|
|
87 |
|
|
|
5,517 |
|
|
|
2,535 |
|
Other
financial assets |
|
|
1,855 |
|
|
|
1,857 |
|
|
|
2,059 |
|
Deferred
tax assets |
|
|
806 |
|
|
|
958 |
|
|
|
1,127 |
|
Total
non-current assets |
|
|
557,729 |
|
|
|
561,989 |
|
|
|
556,165 |
|
Current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables |
|
|
34,847 |
|
|
|
31,072 |
|
|
|
44,699 |
|
Other
receivables |
|
|
6,056 |
|
|
|
7,865 |
|
|
|
8,542 |
|
Prepayments |
|
|
2,993 |
|
|
|
2,166 |
|
|
|
2,581 |
|
Cash and
cash equivalents |
|
|
33,841 |
|
|
|
33,207 |
|
|
|
217,642 |
|
Total current
assets |
|
|
77,736 |
|
|
|
74,311 |
|
|
|
273,464 |
|
TOTAL
ASSETS |
|
|
635,465 |
|
|
|
636,300 |
|
|
|
829,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Contributed equity |
|
|
576,531 |
|
|
|
576,531 |
|
|
|
743,687 |
|
Retained
earnings (accumulated deficit) |
|
|
1,662 |
|
|
|
5,366 |
|
|
|
33,122 |
|
Other
components of equity |
|
|
1,030 |
|
|
|
1,605 |
|
|
|
194 |
|
Equity
attributed to shareholders |
|
|
579,224 |
|
|
|
583,503 |
|
|
|
777,003 |
|
Non-controlling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
equity |
|
|
579,224 |
|
|
|
583,503 |
|
|
|
777,003 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Financial
lease liabilities and other loans |
|
|
3,239 |
|
|
|
4,032 |
|
|
|
2,695 |
|
Deferred
tax liabilities |
|
|
15,791 |
|
|
|
11,828 |
|
|
|
15,101 |
|
Other
liabilities |
|
|
1,690 |
|
|
|
87 |
|
|
|
182 |
|
Total
non-current liabilities |
|
|
20,721 |
|
|
|
15,947 |
|
|
|
17,977 |
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Trade and
other payables |
|
|
21,276 |
|
|
|
21,401 |
|
|
|
23,484 |
|
Deferred
revenue |
|
|
3,791 |
|
|
|
1,472 |
|
|
|
1,853 |
|
Financial
lease liabilities and other loans |
|
|
2,449 |
|
|
|
2,073 |
|
|
|
2,309 |
|
Income
tax payable |
|
|
995 |
|
|
|
3,709 |
|
|
|
950 |
|
Other
liabilities |
|
|
7,011 |
|
|
|
8,195 |
|
|
|
6,053 |
|
Total current
liabilities |
|
|
35,521 |
|
|
|
36,850 |
|
|
|
34,649 |
|
Total
liabilities |
|
|
56,242 |
|
|
|
52,797 |
|
|
|
52,626 |
|
TOTAL EQUITY
AND LIABILITIES |
|
|
635,465 |
|
|
|
636,300 |
|
|
|
829,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERA LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 [Numbers
in US$ thousands] |
|
Contributedequity |
|
|
Retainedearnings
(accumulateddeficit) |
|
|
Othercomponents of
equity |
|
|
Total equity |
|
Balance as of January 1, 2017 |
|
|
576,531 |
|
|
|
(7,704 |
) |
|
|
(630 |
) |
|
|
568,197 |
|
Net income for the
period |
|
|
- |
|
|
|
4,812 |
|
|
|
- |
|
|
|
4,812 |
|
Other comprehensive
income |
|
|
- |
|
|
|
- |
|
|
|
1,659 |
|
|
|
1,659 |
|
Total
comprehensive income for the period |
|
|
- |
|
|
|
4,812 |
|
|
|
1,659 |
|
|
|
6,471 |
|
Share-based payment
transactions |
|
|
- |
|
|
|
4,554 |
|
|
|
- |
|
|
|
4,554 |
|
Balance as of
September 30, 2017 |
|
|
576,531 |
|
|
|
1,662 |
|
|
|
1,030 |
|
|
|
579,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 [Numbers
in US$ thousands] |
|
Contributedequity |
|
Retainedearnings(accumulateddeficit) |
|
|
Other components of equity |
|
|
Total equity |
|
Balance as of
December 31, 2017 - as previously reported |
|
|
576,531 |
|
|
|
5,366 |
|
|
|
1,605 |
|
|
|
583,503 |
|
Change in accounting
principles |
|
|
- |
|
|
|
(629 |
) |
|
|
- |
|
|
|
(629 |
) |
Balance as of
January 1, 2018 |
|
|
576,531 |
|
|
|
4,737 |
|
|
|
1,605 |
|
|
|
582,874 |
|
Net income for the
period |
|
|
- |
|
|
|
23,747 |
|
|
|
- |
|
|
|
23,747 |
|
Other comprehensive
income |
|
|
- |
|
|
|
- |
|
|
|
(1,411 |
) |
|
|
(1,411 |
) |
Total
comprehensive income for the period |
|
|
- |
|
|
|
23,747 |
|
|
|
(1,411 |
) |
|
|
22,336 |
|
Net share issuance
proceeds |
|
|
167,156 |
|
|
|
- |
|
|
|
- |
|
|
|
167,156 |
|
Share-based payment
transactions |
|
|
- |
|
|
|
4,638 |
|
|
|
- |
|
|
|
4,638 |
|
Balance as of
September 30, 2018 |
|
|
743,687 |
|
|
|
33,122 |
|
|
|
194 |
|
|
|
777,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERA LIMITED |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands] |
|
Q3-2017(Unaudited) |
|
|
Q3-2018(Unaudited) |
|
|
YTD
2017(Unaudited) |
|
|
YTD
2018(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash flow from (used in) operating activities |
|
|
9,137 |
|
|
|
6,820 |
|
|
|
1,285 |
|
|
|
21,713 |
|
Net cash flow from
(used in) investment activities |
|
|
4,151 |
|
|
|
(2,426 |
) |
|
|
5,977 |
|
|
|
(3,713 |
) |
Net cash flow from
(used in) financing activities |
|
|
(897 |
) |
|
|
169,463 |
|
|
|
(8,405 |
) |
|
|
167,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in
cash and cash equivalents |
|
|
12,391 |
|
|
|
173,857 |
|
|
|
(1,144 |
) |
|
|
185,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents: Beginning balance |
|
|
21,099 |
|
|
|
43,993 |
|
|
|
34,181 |
|
|
|
33,207 |
|
Effects of exchange
rate changes on cash and cash equivalents |
|
|
352 |
|
|
|
(209 |
) |
|
|
804 |
|
|
|
(682 |
) |
Cash and cash
equivalents: End balance |
|
|
33,841 |
|
|
|
217,642 |
|
|
|
33,841 |
|
|
|
217,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General information
The financial information of Opera Limited ("the Company") and
its subsidiaries (collectively "the Group" or "Opera"), for the
three and nine month periods ended September 30, 2018 were approved
by the Company's Board of Directors on November 7, 2018.
Opera Limited, with its office in George Town, Cayman Islands,
is a limited liability company duly incorporated and validly
existing under the laws of the Cayman Islands.
Opera is one of the world’s leading browser providers and an
influential player in the field of integrated AI-driven digital
content discovery and recommendation platforms.
Operating revenue by category
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands] |
|
Q3-2017 |
|
|
Q3-2018 |
|
|
YTD 2017 |
|
|
YTD 2018 |
|
Search |
|
|
17,034 |
|
|
|
19,130 |
|
|
|
48,097 |
|
|
|
59,115 |
|
Advertising |
|
|
11,190 |
|
|
|
17,550 |
(1) |
|
|
26,808 |
|
|
|
44,184 |
|
Retail |
|
|
- |
|
|
|
2,871 |
|
|
|
- |
|
|
|
2,871 |
|
Technology Licensing /
Other |
|
|
9,833 |
|
|
|
5,116 |
(2) |
|
|
15,119 |
|
|
|
17,771 |
|
Total |
|
|
38,057 |
|
|
|
44,667 |
|
|
|
90,023 |
|
|
|
123,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on new related party revenue components:
(1) |
|
Includes
US$2.0 million revenue from advertising agreements signed with 360
Mobile Security and Powerbets Holdings |
(2) |
|
Includes
the final US$0.5 million revenue from a US$2.0 million perpetual
license agreement with 360 Mobile Security |
|
|
|
Personnel expenses by type
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands] |
|
Q3-2017 |
|
|
Q3-2018 |
|
|
YTD 2017 |
|
|
YTD 2018 |
|
Personnel expenses excluding share-based
remuneration |
|
|
9,038 |
|
|
|
8,617 |
|
|
|
26,102 |
|
|
|
26,416 |
|
Share-based
remuneration, including related social security costs |
|
|
3,422 |
|
|
|
761 |
|
|
|
6,229 |
|
|
|
3,427 |
|
Personnel
expenses including share-based remuneration |
|
|
12,459 |
|
|
|
9,378 |
|
|
|
32,330 |
|
|
|
29,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands] |
|
Q3-2017 |
|
|
Q3-2018 |
|
|
YTD 2017 |
|
|
YTD 2018 |
|
Marketing and distribution |
|
|
7,897 |
|
|
|
7,709 |
|
|
|
18,142 |
|
|
|
22,885 |
|
Hosting |
|
|
2,551 |
|
|
|
2,470 |
|
|
|
9,418 |
|
|
|
7,649 |
|
Audit, legal and other
advisory services |
|
|
797 |
|
|
|
1,865 |
|
|
|
2,262 |
|
|
|
6,743 |
|
Software license
fees |
|
|
587 |
|
|
|
356 |
|
|
|
1,863 |
|
|
|
1,248 |
|
Rent and other office
expense |
|
|
991 |
|
|
|
1,032 |
|
|
|
2,862 |
|
|
|
3,368 |
|
Travel |
|
|
423 |
|
|
|
540 |
|
|
|
1,343 |
|
|
|
1,570 |
|
Other |
|
|
871 |
|
|
|
889 |
|
|
|
2,334 |
|
|
|
1,116 |
|
Total |
|
|
14,118 |
|
|
|
14,863 |
|
|
|
38,224 |
|
|
|
44,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS financial measures
|
|
|
|
|
|
|
|
|
|
|
|
|
[Numbers in US$
thousands, except per share amounts] |
|
Q3-2017(Unaudited) |
|
|
Q3-2018(Unaudited) |
|
|
YTD
2017(Unaudited) |
|
|
YTD
2018(Unaudited) |
|
Reconciliation of net
income to adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7,531 |
|
|
|
9,717 |
|
|
|
4,812 |
|
|
|
23,747 |
|
Add: Income tax expense
(benefit) |
|
|
1,615 |
|
|
|
970 |
|
|
|
2,553 |
|
|
|
5,794 |
|
Add: Total net
financial loss (income) |
|
|
1,155 |
|
|
|
(603 |
) |
|
|
624 |
|
|
|
(836 |
) |
Add: Share of net loss
(income) of associates and joint ventures |
|
|
382 |
|
|
|
1,757 |
|
|
|
956 |
|
|
|
3,381 |
|
Add: Restructuring
costs |
|
|
863 |
|
|
|
- |
|
|
|
2,974 |
|
|
|
- |
|
Add: Depreciation and
amortization |
|
|
4,984 |
|
|
|
3,051 |
|
|
|
12,390 |
|
|
|
9,817 |
|
Add: Share-based
remuneration |
|
|
3,422 |
|
|
|
761 |
|
|
|
6,229 |
|
|
|
3,427 |
|
Add: Expensed IPO
related costs |
|
|
- |
|
|
|
843 |
|
|
|
- |
|
|
|
2,952 |
|
Less: Other income |
|
|
(5,460 |
) |
|
|
- |
|
|
|
(5,460 |
) |
|
|
- |
|
Adjusted
EBITDA |
|
|
14,491 |
|
|
|
16,495 |
|
|
|
25,076 |
|
|
|
48,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
income to adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
|
7,531 |
|
|
|
9,717 |
|
|
|
4,812 |
|
|
|
23,747 |
|
Add: Share-based
remuneration |
|
|
3,422 |
|
|
|
761 |
|
|
|
6,229 |
|
|
|
3,427 |
|
Add: Amortization of
acquired intangible assets |
|
|
1,280 |
|
|
|
1,280 |
|
|
|
3,840 |
|
|
|
3,840 |
|
Add: Expensed IPO
related costs |
|
|
- |
|
|
|
843 |
|
|
|
- |
|
|
|
2,952 |
|
Income tax adjustment
(1) |
|
|
(522 |
) |
|
|
(106 |
) |
|
|
(1,313 |
) |
|
|
(816 |
) |
Adjusted net
income |
|
|
11,710 |
|
|
|
12,494 |
|
|
|
13,567 |
|
|
|
33,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, millions |
|
|
190.25 |
|
|
|
209.99 |
|
|
|
190.25 |
|
|
|
196.83 |
|
Diluted, millions |
|
|
193.69 |
|
|
|
216.82 |
|
|
|
192.05 |
|
|
|
202.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, US$ |
|
|
0.062 |
|
|
|
0.059 |
|
|
|
0.071 |
|
|
|
0.168 |
|
Diluted, US$ |
|
|
0.060 |
|
|
|
0.058 |
|
|
|
0.071 |
|
|
|
0.163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, US$ |
|
|
0.123 |
|
|
|
0.119 |
|
|
|
0.143 |
|
|
|
0.337 |
|
Diluted, US$ |
|
|
0.121 |
|
|
|
0.115 |
|
|
|
0.141 |
|
|
|
0.327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Reversal of
tax benefit related to the social security cost component of
share-based remuneration, deferred taxes on the amortization of
acquired intangible assets, and expensed IPO-related costs. |
|
|
|
Opera (NASDAQ:OPRA)
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From Aug 2024 to Sep 2024
Opera (NASDAQ:OPRA)
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From Sep 2023 to Sep 2024