OSLO, Norway, Feb. 25, 2021 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's largest internet consumer brands with over 380 million monthly active users, today announced its unaudited consolidated financial results for the quarter ended December 31, 2020:

(PRNewsfoto/Opera Limited)

Fourth quarter 2020 financial highlights


Three Months Ended
December 31,


Year-over-


Twelve Months Ended
December 31,


Year-over-


[US$ thousands, except for margins
and per ADS amounts]

2019


2020


year %

change


2019


2020


year %

change


Revenue


48,763



50,446



3.5

%


177,078



165,274



-6.7

%




















Net income (loss)


21,973



25,404



15.6

%


57,899



176,052



204.1

%

Margin


45.1

%


50.4

%





32.7

%


106.5

%























Adjusted EBITDA (1)


6,752



14,271



111.4

%


24,233



25,188



3.9

%

Margin


13.9

%


28.3

%





13.7

%


15.2

%























Adjusted net income (1)


12,662



34,699



174.0

%


50,475



52,280



3.6

%

Margin


25.9

%


68.8

%





27.9

%


31.6

%























Diluted net income per ADS, US$


0.18



0.22



20.2

%


0.51



1.48



188.0

%




















Diluted adjusted net income per ADS, US$ (1)


0.10



0.30



185.3

%


0.45



0.44



-1.9

%



(1)

Please see the separate section "About non-IFRS financial measures" for the definitions of adjusted EBITDA and adjusted net income.

 

"These results demonstrate the potential for Opera to generate significant growth thanks to Opera's two complementary strengths," noted co-CEO Song Lin. "First, our core businesses - the Opera Browser, and Opera News - are operating at greater scale, with higher user engagement, in our key markets. This is a direct reflection of how well we're executing, and increases our ability to monetize. Combined with continued COVID-19 recovery, our user driven search and advertising revenues increased 22% versus the prior quarter, and 14% versus the year-ago quarter, representing a solid foundation and allowing us to offer an even stronger outlook for 2021. Second, the strategic investments we have made in adjacent categories, including gaming and fintech, leverage our core strengths and are significantly accelerating our overall growth potential. We're going to keep making these investments given their clear promise, high growth, and ability to deliver new revenue streams."

Fourth Quarter and Recent Business Highlights

  • Opera's monthly active user base increased by 29 million in 2020.
  • The Company reached 79 million average monthly PC users in the fourth quarter, up 17% year-over-year (vs. up 10% year-over-year in the third quarter).
  • The Opera GX browser user base now exceeds 7 million users, up 350% year-over-year in December.
  • Opera News revenue grew over 150% year-over-year and 60% compared to the third quarter.
  • Opera achieved record revenue on mobile. Opera recently launched an in-browser messaging feature, Hype, in Africa, which is an example of a feature aimed at increasing engagement within our Opera Mini browser. Opera for Android, Opera's flagship mobile browser reached 79 million users, doubling in 2.5 years.
  • Investment in our strategic growth initiatives continued, including the recent acquisition of YoYo Games and creation of Opera Gaming, and the launch of the Dify digital wallet and in-browser cashback offering, broadening Opera's opportunities in gaming and ecommerce. In addition, the huge success of Opera News in Africa has led to a decision to test the product in several developed markets.

"In sum", continued Mr. Lin, "we are doing two things extremely well: operating our core businesses such that they continue to scale and create new paths to monetization, and simultaneously executing against our growth strategy. We're entering 2021 with good momentum and the possibility to generate what many had previously expected would be 2022 revenues. We believe we have all the elements in place to enjoy sustained, long-term growth."

Business Outlook

Mr. Frode Jacobsen, Opera's CFO, said, "Growth in our core business accelerated in the fourth quarter, leading us to raise our revenue growth expectations in 2021 from 25% to 39%, or $65 million above 2020, at the midpoint. We expect our core business to benefit from the additional economies of scale similar to what we experienced in the fourth quarter, but we are using this strength as an opportunity to accelerate growth through high return investments in our key initiatives -- European fintech, gaming and Opera News in developed markets -- which will impact near-term margins as we enter a new phase of accelerated growth."

For the full year 2021, Opera expects revenue of $220 million to $240 million, representing an increase of $30 million at the midpoint compared to prior guidance. Adjusted EBITDA is anticipated to be $10 million to $30 million.

For the first quarter 2021, Opera expects revenue of $47 million to $48 million, representing 18% year-over-year growth at the midpoint, roughly a 15 percentage point increase versus the fourth quarter. Adjusted EBITDA will be around breakeven as Opera invests aggressively in growth.

Nanobank and other investments

On a pro forma basis in the fourth quarter, Nanobank posted revenue of $46.0 million, up 32% compared to the third quarter, and disbursed 3.2 million loans representing $239 million in total value. Adjusted EBITDA was $13.8 million and post-tax profit was $12.3 million. The growth was primarily driven by strength in Indonesia and Mexico.

In terms of other investments, OPay continues to grow and scale its payment offerings. In December, OPay processed a gross transaction value of $2.0 billion on its platform, more than four-times the level in January 2020, and is in the process of launching in a new African geography. StarMaker continues to experience strong growth. Daily active users doubled in 2020 and fourth quarter revenues were at an annual run rate of over $130 million, more than three times the year-ago period.

Opera owns 42% of Nanobank, 13.1% of OPay and 19.35% of StarMaker.

Fourth quarter 2020 consolidated financial results

All comparisons in this section are relative to the fourth quarter of 2019 unless otherwise stated. Our former emerging markets fintech and retail revenues are not included in comparisons as they are classified as discontinued operations.

Revenue increased 3% to $50.4 million

  • Search revenue increased 13%, or 21% versus the third quarter 2020, to $25.7 million due to strong PC user growth and as monetization recovered from COVID-19.
  • Advertising revenue increased 16%, or 23% versus the third quarter 2020, to $23.3 million due to strong Opera News monetization and ad monetization increases.
  • Technology licensing and other revenue was $1.5 million. This declined $4.5 million compared to the previous year as Opera has been phasing out low-margin professional services for an investee.

Operating expenses decreased 6% to $46.4 million.

  • Cost of revenue was $2.7 million, a decrease of 38%. Within this total, $1.9 million related to the browser and news business area and $0.8 million related to other revenue.
  • Personnel expenses, including share-based remuneration, were $15.6 million, an 8% decrease. This expense consists of cash-based compensation expense of $14.6 million, and $1.0 million of share-based remuneration expense.
  • Marketing and distribution expenses were $12.3 million, a decrease of 6%.
  • Depreciation and amortization expenses were $5.9 million, flat year-over-year.
  • Other operating expenses were $5.9 million, a 31% decrease driven by reduced travel and general reductions.
  • Non-recurring costs were $3.3 million and predominantly related to the dissolution of the Powerbets joint venture.

Operating profit was $8.0 million, representing an operating margin of 16%, compared to operating loss of $0.7 million and a negative 1% margin during the fourth quarter of 2019. The increase was primarily due to lower operating expenses and the shift away from "technology licensing and other" revenue.

Other items include share of net profit of associates and joint ventures of $5.2 million, predominantly related to Nanobank, and an $8.0 million increase in the fair value of preferred shares in Starmaker and OPay following year-end assessments. Further, net finance income was $6.6 million, primarily related to marketable securities held as part of our treasury function.

Income tax expense was $0.1 million in the quarter.

Net income was $25.4 million, comprising $27.7 million in profits from continued operations and $2.3 million loss from discontinued operations following an adjustment to the initial valuation of our shares in Nanobank. This compared to a net income of $22.0 million in the fourth quarter of 2019.

Net income per ADS was $0.22 in the quarter. Each ADS represents two shares in Opera Limited. In the quarter, the average number of shares outstanding was 229.5 million, corresponding to 114.8 million ADSs.

Adjusted EBITDA was $14.3 million, representing a 28% adjusted EBITDA margin, compared to adjusted EBITDA of $6.8 million in the fourth quarter 2019. Adjusted EBITDA excludes share-based remuneration and non-recurring expenses, as well as other income and discontinued operations.

Adjusted net income was $34.7 million in the quarter, compared to adjusted net income of $12.7 million in fourth quarter 2019. Adjusted net income excludes share-based remuneration, non-recurring expenses, discontinued operations and amortization of intangible assets related to acquisitions.

Adjusted net income per ADS was $0.30 in the quarter.

Share repurchases were 0.9 million ADSs in the quarter for a total spend of $8.2 million. In 2020, we repurchased 5.9 million ADSs for a total spend of $49.0 million.

Discontinued operations include Opera's retail business, which was discontinued following a strategic assessment as it had not been profit generating, and Opera's former emerging markets fintech business, which was contributed to Nanobank on August 19, 2020. Opera owns 42% of Nanobank as of December 31, 2020.

We have posted unaudited supplemental information at https://investor.opera.com, including: 1) Opera's financial historical results by quarter over 2019 and 2020, reflecting microlending and retail as discontinued operations; and 2) Nanobank financial results by quarter over 2019 and 2020 (pro forma prior to August 19, 2020).

Conference call

Opera's management will host a conference call to discuss the fourth quarter 2020 financial results on Thursday, February 25th at 8:00 am Eastern Time (EST) (2:00 PM Central European Time, 9:00 PM Beijing/Hong Kong time). Listeners may access the call by dialing the following numbers:

United States: +1 833 570-1161
China: +86 400 682 8609
Hong Kong: +852 5819 4851
Norway: +47 2396 4173
United Kingdom: +44 (0)203 107 0289
International: +1 918 922-6511
Confirmation Code: 6964699

A live webcast of the conference call will be posted at https://investor.opera.com.

About non-IFRS financial measures

To supplement our consolidated financial statements, which are prepared and presented based on 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), net finance expense (income), share of net loss (income) of associates and joint ventures, restructuring costs, depreciation and amortization, share-based remuneration, other income, non-recurring expenses and discontinued operations.

We define adjusted net income as net income excluding share-based remuneration, amortization of acquired intangible assets, non-recurring expenses and discontinued operations, net of associated income tax 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. Please refer to our financial statements at the end of this announcement for a table reconciling our non-IFRS financial measures to net income (loss), the most directly comparable IFRS financial measure.

Safe harbor statement

This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company and its investees' 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 the Company, its investees, and the industry in which they operate. Potential risks and uncertainties include, but are not limited to, those relating to: the duration and development of the COVID-19 pandemic as well as changes in consumer behaviours as a result of such pandemic; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company and its investees' expectations regarding demand for and market acceptance of their 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 and/or upgrade its existing technologies; 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 Company or its investees have businesses. All information provided in this press release is as of the date hereof, and the Company 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 U.S. Securities and Exchange Commission, including its annual reports on Form 20-F.

About Opera

Opera is a global web innovator. Opera's browsers, news products and fintech solutions are the trusted choice of more than 380 million monthly active users worldwide. Opera is headquartered in Oslo, Norway and listed on the NASDAQ stock exchange (OPRA).

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS




Three Months Ended
December 31,



Twelve Months Ended
December 31,


[US$ thousands, except per share and ADS amounts]


2019



2020



2019



2020



















Revenue



48,763




50,446




177,078




165,274


Other income



-




3,910




-




9,479


Operating expenses

















Cost of revenue



(4,384)




(2,710)




(14,239)




(12,112)


Personnel expenses including share-based remuneration



(16,998)




(15,606)




(51,283)




(59,936)


Marketing and distribution expenses



(13,148)




(12,318)




(64,883)




(47,860)


Credit loss expense



(380)




(607)




(580)




(1,849)


Depreciation and amortization



(5,969)




(5,876)




(18,843)




(20,234)


Non-recurring expenses



-




(3,321)




-




(6,543)


Other expenses



(8,577)




(5,929)




(27,787)




(23,037)


Total operating expenses



(49,455)




(46,367)




(177,614)




(171,570)



















Operating profit (loss)



(692)




7,990




(537)




3,182



















Share of net income (loss) of associates and joint ventures



837




5,187




(3,818)




3,865


Change in fair value of preferred shares in associates



6,992




8,000




37,900




14,000



















Net finance income (expense)

















Finance income



6,561




5,166




10,532




13,633


Finance expense



(184)




(30)




(655)




(516)


Net foreign exchange gain (loss)



467




1,421




(25)




833


Net finance income (expense)



6,844




6,557




9,851




13,950



















Profit before income taxes



13,981




27,735




43,396




34,997


Income tax (expense) benefit



(3,793)




(56)




(2,658)




(689)


Profit from continuing operations



10,188




27,680




40,739




34,310



















Profit (loss) from discontinued operations



11,784




(2,276)




17,161




141,742



















Net income



21,973




25,404




57,899




176,052



















Net income attributable to:

















Equity holders of the parent



21,973




25,404




57,899




176,052


Non-controlling interests



-




-




-




-


Total net income attributed



21,973




25,404




57,899




176,052



















Weighted average number of ordinary shares outstanding

















Basic, millions(1)



237.44




229.54




224.63




234.57


Diluted, millions(2)



241.76




232.49




224.83




237.39



















Profit per ordinary share from continuing operations

















Basic, US$



0.04




0.12




0.18




0.15


Diluted, US$



0.04




0.12




0.18




0.14



















Profit per ADS from continuing operations

















Basic, US$



0.09




0.24




0.36




0.29


Diluted, US$



0.08




0.24




0.36




0.29



















Net income per ordinary share

















Basic, US$



0.09




0.11




0.26




0.75


Diluted, US$



0.09




0.11




0.25




0.74



















Net income per ADS

















Basic, US$



0.19




0.22




0.52




1.50


Diluted, US$



0.18




0.22




0.51




1.48




(1)

As of December 31, 2020, the total number of shares outstanding for Opera Limited was 228,285,684, equivalent to 114,142,842 ADSs.



(2)

Includes the net dilutive impact of employee equity awards, all of which are dilutive.

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)




Three Months Ended
December 31,



Twelve Months Ended
December 31,


[US$ thousands]


2019



2020



2019



2020



















Net income



21,973




25,404




57,899




176,052



















Other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods (net of tax)

















Exchange differences on translation of foreign operations



301




944




(1,790)




42


Reclassification of exchange differences on loss of control



-




(151)




7




2,936


Share of other comprehensive income (loss) of associates and joint ventures



-




-




(41)




-


Net other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods



301




793




(1,824)




2,978


Total comprehensive income



22,274




26,198




56,075




179,031




































Total comprehensive income attributable to:

















Equity holders of the parent



22,274




26,198




56,075




179,031


Non-controlling interests



-




-




-




-


Total comprehensive income attributed



22,274




26,198




56,075




179,031


 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION




As of December 31,


[US$ thousands]


2019



2020


ASSETS









Non-current assets









Furniture, fixtures and equipment



26,053




18,167


Intangible assets



110,807




111,954


Goodwill



421,578




424,961


Investments in associates and joint ventures



76,300




359,576


Non-current financial assets



1,351




1,490


Deferred tax assets



6,204




3,996


Total non-current assets



642,293




920,144











Current assets









Trade receivables



49,371




32,606


Loans to customers



93,115




68


Other receivables



59,112




10,750


Prepayments



25,809




9,061


Inventories



7,752




-


Other current financial assets



1,535




856


Marketable securities



42,146




-


Cash and cash equivalents



139,487




134,168


Total cash, cash equivalents, and marketable securities



181,633




134,168


Total current assets



418,327




187,508


TOTAL ASSETS



1,060,620




1,107,652




















EQUITY AND LIABILITIES









Equity









Share capital



24




24


Other paid in capital



814,177




765,129


Retained earnings



99,513




280,211


Foreign currency translation reserve



(1,508)




1,343


Equity attributed to equity holders of the parent



912,206




1,046,707


Non-controlling interests



-




-


Total equity



912,206




1,046,707











Non-current liabilities









Non-current lease liabilities and other loans



9,181




3,584


Deferred tax liabilities



10,526




11,745


Other non-current liabilities



137




68


Total non-current liabilities



19,844




15,397











Current liabilities









Trade and other payables



57,125




25,454


Current lease liabilities and other loans



47,793




5,389


Income tax payable



7,803




1,321


Deferred revenue



708




345


Other current liabilities



15,142




13,040


Total current liabilities



128,570




45,548











Total liabilities



148,414




60,945


TOTAL EQUITY AND LIABILITIES



1,060,620




1,107,652


 

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


[US$ thousands]


Share
capital



Other paid
in capital



Retained
earnings



Foreign
currency
translation
reserve



Total equity























As of December 31, 2018, as previously reported



22




738,690




36,432




316




775,460


Impact of implementing IFRS 16 Leases



-




-




64




-




64


As of January 1, 2019, restated



22




738,690




36,496




316




775,524


Net income



-




-




57,899




-




57,899


Other comprehensive income (loss)



-




-




-




(1,824)




(1,824)


Total comprehensive income (loss)



-




-




57,899




(1,824)




56,075


Contribution of equity, net of transaction costs



2




81,267




-




-




81,267


Acquisition of treasury shares



-




(5,780)




-




-




(5,780)


Share-based remuneration expense



-




-




5,118




-




5,118


As of December 31, 2019



24




814,177




99,513




(1,508)




912,206


 

[US$ thousands]


Share
capital



Other paid
in capital



Retained
earnings



Foreign
currency
translation
reserve



Total equity























As of December 31, 2019



24




814,177




99,513




(1,508)




912,206


Net income



-




-




176,052




-




176,052


Other comprehensive income



-




-




-




2,978




2,978


Total comprehensive income



-




-




176,052




2,978




179,030


Acquisition of treasury shares



-




(49,049)




-




-




(49,049)


Reclassification of foreign currency translation reserve



-




-




126




(126)




-


Share-based remuneration expense



-




-




4,521




-




4,521


As of December 31, 2020



24




765,129




280,211




1,343




1,046,708


 

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS




Three Months Ended
December 31,



Twelve Months Ended
December 31,


[US$ thousands]


2019



2020



2019



2020


Cash flow from operating activities

















Net income (loss) before income taxes from continuing operations



13,981




27,735




43,396




34,997


Net income (loss) before income taxes from discontinued operations



12,621




(734)




20,124




139,792


Income taxes paid



(8,503)




(1,886)




(9,870)




(9,887)


Depreciation and amortization



6,000




5,879




18,934




20,390


Share of net loss (income) of associates and joint ventures



(837)




(5,187)




3,818




(3,865)


Change in fair value of preferred shares in associates and joint ventures



(6,992)




(8,000)




(37,900)




(14,000)


Equity component of share-based payment expense



1,478




886




5,118




4,521


Gain on disposal of fintech segment



-




-




-




(152,048)


Net finance income (expense)



(6,028)




(6,557)




(8,756)




(13,950)


Change in inventories



(5,820)




179




(7,752)




7,752


Change in trade and other receivables



(3,691)




(544)




(14,206)




19,572


Change in loans to customers



(37,607)




(68)




(90,023)




73,365


Change in trade and other payables



15,583




(605)




39,168




(25,135)


Change in deferred revenue



(451)




(2,404)




(1,224)




(346)


Change in prepayments



1,048




4,645




(11,437)




12,032


Change in other liabilities



2,322




4,036




5,441




(1,482)


Other



44




112




706




1,616


Net cash flow from (used in) operating activities



(16,852)




17,487




(44,464)




93,324



















Cash flow from investment activities

















Purchase of intangibles assets



-




(8)




-




(2,286)


Proceeds from sales of equipment and intangible assets



6




-




6




-


Purchase of equipment



(1,714)




(165)




(8,868)




(2,484)


Investment in, and loans to associates and joint ventures



(911)




(440)




(6,550)




(440)


Acquisition of subsidiary, net of cash acquired



-




-




-




(4,882)


Disbursement of short-term loans



-




-




-




(4,497)


Cash transferred with Okash Group



-




-




-




(39,260)


Release of escrow account



-




-




-




1,000


Repayment of short-term loans



-




-




-




4,497


Repayment of loans to associates and joint ventures



-




-




726




-


Deposit of collateral for loan facility



(52,878)




-




(52,878)




(1,000)


Net sale (purchase) of listed equity instruments



10,423




61,624




(35,250)




58,535


Development expenditure



(964)




(615)




(4,173)




(6,553)


Interest income received



-




(205)




-




326


Net cash flow from (used in) investing activities



(46,038)




60,191




(106,987)




2,956



















Cash flow from financing activities

















Acquisition of treasury shares



-




(8,194)




(5,780)




(49,049)


Proceeds from loans and borrowings



21,543




-




43,163




6,905


Interests on loans and borrowings



(797)




(75)




(1,184)




(1,752)


Proceeds from issues of equity instruments



10,778




-




82,630




-


Repayment of loans and borrowings



(172)




305




(1,509)




(52,874)


Transaction costs on issue of equity instruments



(497)




-




(1,364)




-


Payment of lease liabilities



-




(426)




(2,755)




(4,202)


Net cash flow from (used in) financing activities



30,855




(8,390)




113,200




(100,972)



















Net change in cash and cash equivalents



(32,034)




69,288




(38,248)




(4,692)



















Cash and cash equivalents at beginning of period



170,697




64,416




177,873




139,487


Net foreign exchange difference



825




465




(137)




(627)


Cash and cash equivalents at end of period



139,487




134,168




139,487




134,168


 

 

Financial details by business area


The tables below specify the contribution by each business area:


[US$ thousands]


Three Months Ended December 31, 2019


Business area


Browser and
News



Other



Total


Revenue categories













Search



22,641




-




22,641


Advertising



20,164




-




20,164


Technology licensing and other revenue



-




5,958




5,958


Total revenue



42,805




5,958




48,763















Cost of revenue



(1,030)




(3,354)




(4,384)


Marketing and distribution expenses



(13,148)




-




(13,148)


Credit loss expense



(249)




(131)




(380)


Direct expenses



(14,427)




(3,485)




(17,912)















Contribution by business area



28,378




2,473




30,852


 

[US$ thousands]


Three Months Ended December 31, 2020


Business area


Browser and
News



Other



Total


Revenue categories













Search



25,653




-




25,653


Advertising



23,121




180




23,301


Technology licensing and other revenue



-




1,492




1,492


Total revenue



48,774




1,672




50,446















Cost of revenue



(1,873)




(837)




(2,710)


Marketing and distribution expenses



(12,068)




(250)




(12,318)


Credit loss expense



(34)




(573)




(607)


Direct expenses



(13,975)




(1,660)




(15,635)















Contribution by business area



34,799




12




34,810


 

[US$ thousands]


Twelve Months Ended December 31, 2019


Business area


Browser and
News



Other



Total


Revenue categories













Search



86,155




-




86,155


Advertising



68,813




-




68,813


Technology licensing and other revenue



-




22,111




22,111


Total revenue



154,968




22,111




177,078















Cost of revenue



(2,642)




(11,597)




(14,239)


Marketing and distribution expenses



(64,685)




(198)




(64,883)


Credit loss expense



(448)




(132)




(580)


Direct expenses



(67,776)




(11,927)




(79,702)















Contribution by business area



87,192




10,184




97,376


 

[US$ thousands]


Twelve Months Ended December 31, 2020


Business area


Browser and
News



Other



Total


Revenue categories













Search



84,180




-




84,180


Advertising



71,510




216




71,726


Technology licensing and other revenue



-




9,368




9,368


Total revenue



155,690




9,584




165,274















Cost of revenue



(7,487)




(4,625)




(12,112)


Marketing and distribution expenses



(47,042)




(818)




(47,860)


Credit loss expense



(568)




(1,281)




(1,849)


Direct expenses



(55,097)




(6,724)




(61,821)















Contribution by business area



100,593




2,860




103,453


 

 

Personnel expenses including share-based remuneration


The table below specifies the amounts of personnel expenses including share-based remuneration:


[US$ thousands]


Three Months Ended
December 31,



Twelve Months Ended
December 31,


Personnel expenses including share-based remuneration


2019



2020



2019



2020


Personnel expenses excluding share-based remuneration



15,523




14,614




45,355




55,230


Share-based remuneration, including related social security costs



1,475




992




5,928




4,706


Total



16,998




15,606




51,283




59,936


 

 

Other expenses


The table below specifies the nature of other expenses:


[US$ thousands]


Three Months Ended
December 31,



Twelve Months Ended
December 31,


Other expenses


2019



2020



2019



2020


Hosting



1,873




2,115




7,151




8,056


Audit, legal and other advisory services



1,598




1,529




6,742




5,837


Software license fees



385




432




2,169




1,882


Rent and other office expense



949




1,015




4,175




3,318


Travel



1,549




209




3,903




1,304


Other



2,222




628




3,645




2,640


Total



8,576




5,929




27,787




23,037


 

 

Non-IFRS financial measures 




Three Months Ended
December 31,



Twelve Months Ended
December 31,


[US$ thousands, except per share and ADS amounts]


2019



2020



2019



2020


Reconciliation of net income (loss) to adjusted EBITDA

















Net income (loss)



21,973




25,404




57,899




176,052


Add: Income tax expense (benefit)



3,793




56




2,658




689


Add: Net finance expense (income)



(6,844)




(6,557)




(9,851)




(13,950)


Add: Share of net loss (income) of associates and joint ventures



(837)




(5,187)




3,818




(3,865)


Add: Change in fair value of preferred shares in associates



(6,992)




(8,000)




(37,900)




(14,000)


Add: Depreciation and amortization



5,969




5,876




18,843




20,234


Add: Share-based remuneration



1,475




992




5,928




4,706


Add: Non-recurring expenses



-




3,321




-




6,543


Less: Other income



-




(3,910)




-




(9,479)


Less: Profit (loss) from discontinued operations



(11,784)




2,276




(17,161)




(141,742)


Adjusted EBITDA



6,752




14,271




24,233




25,188



















Reconciliation of net income (loss) to adjusted net income

















Net Income (loss)



21,973




25,404




57,899




176,052


Add: Share-based remuneration



1,483




992




5,928




4,706


Add: Amortization of acquired intangible assets



1,280




1,341




5,120




5,356


Add: Amortization of Nanobank intangible assets(1)



-




1,684




-




2,584


Add: Non-recurring expenses



-




3,321




-




6,543


Income tax adjustment (2)



(305)




(319)




(1,311)




(1,218)


Less: Profit (loss) from discontinued operations



(11,784)




2,276




(17,161)




(141,742)


Adjusted net income



12,662




34,699




50,475




52,280



















Weighted average number of ordinary shares outstanding

















Basic, millions



237.44




229.54




224.63




234.57


Diluted, millions



241.76




232.49




224.83




237.39



















Adjusted net income (loss) per ordinary share

















Basic, US$



0.05




0.15




0.22




0.22


Diluted, US$



0.05




0.15




0.22




0.22



















Adjusted net income (loss) per ADS

















Basic, US$



0.11




0.30




0.44




0.45


Diluted, US$



0.10




0.30




0.45




0.44




(1)

The amortization of Nanobank intangible assets is included in the line "Share of net income (loss) of associates and joint ventures".



(2)

Reversal of tax benefit related to the social security cost component of share-based remuneration and deferred taxes on the amortization of acquired intangible assets.

 

 

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