OSLO, Norway, April 27, 2021 /PRNewswire/ -- Opera Limited
(NASDAQ: OPRA), one of the world's largest internet consumer brands
with hundreds of millions of users worldwide, today announced its
unaudited consolidated financial results for the quarter ended
March 31, 2021:
First quarter 2021 financial highlights
|
|
Three Months Ended
March 31,
|
|
|
Year-over-
|
|
[US$ thousands,
except for margins and per ADS amounts]
|
|
2020
|
|
|
2021
|
|
|
year
%
change
|
|
Revenue
|
|
|
40,194
|
|
|
|
51,583
|
|
|
|
28.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(20,859)
|
|
|
|
639
|
|
|
|
n.m.
|
|
Margin
|
|
|
-51.9
|
%
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
|
(338)
|
|
|
|
4,576
|
|
|
|
n.m.
|
|
Margin
|
|
|
-0.8
|
%
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(1)
|
|
|
(12,271)
|
|
|
|
4,607
|
|
|
|
n.m.
|
|
Margin
|
|
|
-30.5
|
%
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per ADS, US$
|
|
|
(0.17)
|
|
|
|
0.01
|
|
|
|
n.m.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted net
income per ADS, US$ (1)
|
|
|
(0.10)
|
|
|
|
0.04
|
|
|
|
n.m.
|
|
|
(1) Please see
the separate section "About non-IFRS financial measures" for the
definitions of adjusted EBITDA and adjusted net income.
|
"Opera's financial outperformance this quarter is a welcome
validation of our strategic approach to growth, and highlights our
two complementary strengths," noted co-CEO Song Lin. "First, our core businesses are
operating at greater scale across our key markets, with higher user
engagement. As a consequence, user-driven search and advertising
revenues accelerated to 38% year-over-year growth. Second, the
strategic investments we have made in adjacent growth categories,
including gaming and fintech, are showing good early traction, and
we'll continue to invest heavily in them. This includes the launch
of our smart shopping/cashback offering in Spain, Opera News performing well at
early-stage western market launches, and expanding the features and
reach of Opera's GX gaming browser. While we invested heavily in
our new initiatives, our adjusted EBITDA came in well ahead of
guidance as revenue overperformance cascaded to profits. Overall,
this was a very strong start to our year, directly reflecting how
well we're executing on all fronts."
First Quarter and Recent Business Highlights
- Core search and advertising growth rates accelerated to 38%
year-over-year in Q1 driven by strong browser and news
performance
- Opera's monthly active user base increased by 16 million
year-over-year in the first quarter; driven by 12% and 14%
year-over-year growth in core regions Africa and Europe, respectively
- The Company reached 79 million average monthly PC users in the
first quarter, up 17% year-over-year
- The Opera GX browser user base now totals nearly 9 million
users, up 190% year-over-year in March
- Opera News revenue grew over 260% year-over-year and 30%
sequentially versus the fourth quarter.
- Investments in our strategic growth initiatives continued;
Opera News continues to scale in developed markets, we launched a
cashback offering under the Dify brand in Europe, and we continued to build out the
Opera gaming platform/community.
"In sum", continued Mr. Song, "we believe we have all the
elements in place to enjoy sustained, strong long-term growth,
accelerating our trajectory towards significant scale. Our core
browsing business shows there is substantial room for growth and
innovation: people want features optimized for the way they
actually spend time online, whether it's shopping, gaming, looking
for news, or simply trying to manage their digital lives with a
sense of privacy and security. People have every right to expect
more innovation, and more value, from the browsing experience, and
the combination of our core businesses and new initiatives offer
just that."
Business Outlook
Mr. Frode Jacobsen, Opera's CFO,
said, "The continued acceleration of our core browser and Opera
News products, both in terms of engagement and monetization,
resulted in a first quarter that exceeded our already high
expectations. Due to this we are raising our revenue expectations
for the full year. Further, we remain extremely optimistic about
the long-term prospects of our gaming, European fintech and Opera
News in developed markets, but we continue to take a cautious
approach as it relates to near-term financial expectations -- fully
weighting potential investment, while only including small amounts
of revenue contribution from new initiatives."
For the full year 2021, Opera now expects revenue of
$230 million to $245 million, representing a 44% year-over-year
increase at the midpoint. Adjusted EBITDA expectations remain
$10 million to $30 million as we continue to invest our
underlying EBITDA growth in our new initiatives to accelerate our
long-term growth potential.
For the second quarter 2021, Opera expects revenue of
$55 million to $57 million, representing 74% year-over-year
growth at the midpoint. This is being driven primarily by further
acceleration in our core business and COVID-19 impacts on the
year-ago results. Adjusted EBITDA will be around breakeven as Opera
invests aggressively in growth.
Nanobank and other investments
Nanobank posted revenue of $50.3
million in the quarter, up about 10% compared to the fourth
quarter, and disbursed loans representing $235 million in total value. Adjusted EBITDA was
$5.5 million and post tax profits
were $4.3 million. The growth was
primarily driven by growth in markets launched in the past six
months.
In terms of other investments, OPay's total payment volume
continues to grow and has increased from December 2020 levels of $2
billion. StarMaker continues to experience strong growth
with an annual revenue run rate of almost $180 million in the first quarter, up 3.5 times
compared to the year-ago period.
Opera owns 42% of Nanobank, 13.1% of OPay and 19.35% of
StarMaker.
First quarter 2021 consolidated financial results
All comparisons in this section are relative to the first
quarter of 2020 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 28% to $51.6 million
- Search revenue increased 36% to $26.7
million due to strong PC user growth and as monetization
continued to improve.
- Advertising revenue increased 40% to $24.3 million due to strong Opera News
monetization and ad monetization increases.
- Technology licensing and other revenue was $1.4 million. This declined $2.3 million compared to the previous year as
Opera has been phasing out low-margin professional services for an
investee.
Operating expenses increased 11% to $53.1 million.
- Combined technology and platform fees, content cost and cost of
inventory sold was $2.2 million, a
30% increase driven by increased costs of third-party ad
inventory.
- Personnel expenses, including share-based remuneration, were
$17.1 million, a 4% increase. This
expense consists of cash-based compensation expense of $16.0 million, and $1.1
million of share-based remuneration expense.
- Marketing and distribution expenses were $23.4 million, an increase of 61% driven by
increased spend towards new initiatives, primarily Opera News in
developed markets.
- Depreciation and amortization expenses were $5.0 million, up 8%.
- Other operating expenses were $5.5
million, a 23% decrease driven by general reductions across
several smaller cost categories.
Operating loss was $1.5
million compared to operating loss of $7.5 million during the first quarter of 2020.
The improvement was primarily due to growth in high margin
revenue.
Other items include share of net loss of associates
and joint ventures of $145 thousand.
Further, net finance income was $1.4
million, primarily related to marketable securities held as
part of our treasury function.
Income tax benefit was $0.8
million in the quarter.
Net income was $0.6
million. This compared to a net loss of $20.9 million in the first quarter of 2020, of
which $16.0 million loss related to
continuing operations.
Net income per ADS was $0.01 in the quarter. Each ADS represents two
shares in Opera Limited. In the quarter, the average number of
shares outstanding was 230.3 million, corresponding to 115.1
million ADSs.
Adjusted EBITDA was $4.6
million, representing a 9% adjusted EBITDA margin, compared
to adjusted EBITDA loss of $0.3
million in the first quarter 2020. Adjusted EBITDA excludes
share-based remuneration and non-recurring expenses, as well as
other income and discontinued operations.
Adjusted net income was $4.6
million in the quarter, compared to adjusted net loss of
$12.3 million in first quarter 2020.
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 $0.04 in the quarter.
We have posted unaudited supplemental information at
https://investor.opera.com, including: 1) Opera's financial
historical results by quarter since 2019; and 2) Nanobank financial
results by quarter since 2019 (pro forma prior to August 19, 2020). The presentation of Opera's
previous results includes certain reclassifications, most notably
eliminating the prior "cost of revenue" line item to present all
costs by nature, and certain fair value adjustments for year-end
2020. In sum, prior period revenue and adjusted EBITDA is not
affected, while 2020 net income increased by $7.0 million.
We are in an advanced stage of completing our annual report on
Form 20-F. We anticipate, however, using the extra time afforded by
SEC Rule 12b-25. Our investee
Nanobank is conducting its first annual closing of IFRS figures
across all active markets, and related external audit under PCAOB
auditing standards, upon which we intend to rely. In particular,
Nanobank's location in India has
seen process impacts of the local COVID-19 resurgence affecting
both Nanobank staff and its external audit team, resulting in
significant delays in completing all required processes.
Conference call
Opera's management will host a conference call to discuss the
first quarter 2021 financial results on Tuesday, April 27th at 8:00 am Eastern Time (EDT) (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: 3686713
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 behaviors 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 hundreds of
millions of users worldwide. Opera is headquartered in Oslo, Norway and listed on the NASDAQ stock
exchange (OPRA). Download the Opera browser from www.opera.com.
UNAUDITED
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
|
Three Months Ended
March 31,
|
|
[US$ thousands,
except per share and ADS amounts]
|
|
2020
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
40,194
|
|
|
|
51,583
|
|
Other
income
|
|
|
-
|
|
|
|
58
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Technology and
platform fees
|
|
|
(547)
|
|
|
|
(873)
|
|
Content
cost
|
|
|
(1,075)
|
|
|
|
(845)
|
|
Cost of inventory
sold
|
|
|
(49)
|
|
|
|
(446)
|
|
Personnel expenses
including share-based remuneration
|
|
|
(16,453)
|
|
|
|
(17,096)
|
|
Marketing and
distribution expenses
|
|
|
(14,526)
|
|
|
|
(23,357)
|
|
Credit loss
expense
|
|
|
(1,244)
|
|
|
|
14
|
|
Depreciation and
amortization
|
|
|
(4,657)
|
|
|
|
(5,037)
|
|
Non-recurring
expenses
|
|
|
(2,072)
|
|
|
|
-
|
|
Other
expenses
|
|
|
(7,113)
|
|
|
|
(5,460)
|
|
Total operating
expenses
|
|
|
(47,735)
|
|
|
|
(53,099)
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
(7,544)
|
|
|
|
(1,457)
|
|
|
|
|
|
|
|
|
|
|
Share of net income
(loss) of associates and joint ventures
|
|
|
(664)
|
|
|
|
(145)
|
|
Change in fair value
of preferred shares in associates
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net finance income
(expense)
|
|
|
|
|
|
|
|
|
Finance
income
|
|
|
(11)
|
|
|
|
1,717
|
|
Finance
expense
|
|
|
(5,920)
|
|
|
|
(442)
|
|
Net foreign exchange
gain (loss)
|
|
|
(280)
|
|
|
|
139
|
|
Net finance income
(expense)
|
|
|
(6,211)
|
|
|
|
1,413
|
|
|
|
|
|
|
|
|
|
|
Profit before
income taxes
|
|
|
(14,420)
|
|
|
|
(189)
|
|
Income tax (expense)
benefit
|
|
|
(1,549)
|
|
|
|
828
|
|
Profit from
continuing operations
|
|
|
(15,969)
|
|
|
|
639
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) from
discontinued operations
|
|
|
(4,892)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
(20,859)
|
|
|
|
639
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
Equity holders of the
parent
|
|
|
(20,859)
|
|
|
|
639
|
|
Non-controlling
interests
|
|
|
-
|
|
|
|
-
|
|
Total net income
attributed
|
|
|
(20,859)
|
|
|
|
639
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
|
|
|
|
|
|
|
|
|
Basic,
millions(1)
|
|
|
238.29
|
|
|
|
230.25
|
|
Diluted,
millions(2)
|
|
|
241.64
|
|
|
|
232.69
|
|
|
|
|
|
|
|
|
|
|
Profit per
ordinary share from continuing operations
|
|
|
|
|
|
|
|
|
Basic, US$
|
|
|
(0.07)
|
|
|
|
0.00
|
|
Diluted,
US$
|
|
|
(0.07)
|
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Profit per ADS
from continuing operations
|
|
|
|
|
|
|
|
|
Basic, US$
|
|
|
(0.13)
|
|
|
|
0.01
|
|
Diluted,
US$
|
|
|
(0.13)
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
Net income per
ordinary share
|
|
|
|
|
|
|
|
|
Basic, US$
|
|
|
(0.09)
|
|
|
|
0.00
|
|
Diluted,
US$
|
|
|
(0.09)
|
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Net income per
ADS
|
|
|
|
|
|
|
|
|
Basic, US$
|
|
|
(0.18)
|
|
|
|
0.01
|
|
Diluted,
US$
|
|
|
(0.17)
|
|
|
|
0.01
|
|
|
(1) As of March
31, 2021, the total number of shares outstanding for Opera Limited
was 230,291,732 , equivalent to 115,145,866 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
March 31,
|
|
[US$
thousands]
|
|
2020
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
(20,859)
|
|
|
|
639
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
(1,316)
|
|
Net other
comprehensive income (loss) that may be reclassified to the
Statement of Operations in subsequent periods
|
|
|
301
|
|
|
|
(1,316)
|
|
Total
comprehensive income
|
|
|
(20,558)
|
|
|
|
(677)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
Equity holders of the
parent
|
|
|
(20,558)
|
|
|
|
(677)
|
|
Non-controlling
interests
|
|
|
-
|
|
|
|
-
|
|
Total
comprehensive income attributed
|
|
|
(20,558)
|
|
|
|
(677)
|
|
|
|
|
UNAUDITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
As of December
31,
|
|
|
As of March
31,
|
|
[US$
thousands]
|
|
2020
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Furniture, fixtures
and equipment
|
|
|
18,167
|
|
|
|
16,650
|
|
Intangible
assets
|
|
|
111,954
|
|
|
|
113,786
|
|
Goodwill
|
|
|
424,961
|
|
|
|
431,391
|
|
Investments in
associates and joint ventures
|
|
|
369,576
|
|
|
|
370,387
|
|
Non-current financial
assets
|
|
|
1,490
|
|
|
|
1,445
|
|
Deferred tax
assets
|
|
|
4,383
|
|
|
|
3,933
|
|
Total non-current
assets
|
|
|
930,531
|
|
|
|
937,592
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Trade
receivables
|
|
|
29,027
|
|
|
|
31,288
|
|
Loans to
customers
|
|
|
68
|
|
|
|
80
|
|
Other
receivables
|
|
|
10,750
|
|
|
|
8,275
|
|
Prepayments
|
|
|
9,061
|
|
|
|
5,899
|
|
Inventories
|
|
|
-
|
|
|
|
21
|
|
Other current
financial assets
|
|
|
856
|
|
|
|
-
|
|
Marketable
securities
|
|
|
-
|
|
|
|
-
|
|
Cash and cash
equivalents
|
|
|
134,168
|
|
|
|
143,297
|
|
Total cash, cash
equivalents, and marketable securities
|
|
|
134,168
|
|
|
|
143,297
|
|
Total current
assets
|
|
|
183,929
|
|
|
|
188,859
|
|
TOTAL
ASSETS
|
|
|
1,114,460
|
|
|
|
1,126,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
24
|
|
|
|
24
|
|
Other paid in
capital
|
|
|
765,129
|
|
|
|
764,381
|
|
Retained
earnings
|
|
|
287,246
|
|
|
|
288,618
|
|
Foreign currency
translation reserve
|
|
|
1,343
|
|
|
|
27
|
|
Equity attributed
to equity holders of the parent
|
|
|
1,053,743
|
|
|
|
1,053,049
|
|
Non-controlling
interests
|
|
|
-
|
|
|
|
-
|
|
Total
equity
|
|
|
1,053,743
|
|
|
|
1,053,049
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Non-current lease
liabilities and other loans
|
|
|
3,584
|
|
|
|
4,529
|
|
Deferred tax
liabilities
|
|
|
11,745
|
|
|
|
11,192
|
|
Other non-current
liabilities
|
|
|
68
|
|
|
|
193
|
|
Total non-current
liabilities
|
|
|
15,397
|
|
|
|
15,913
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Trade and other
payables
|
|
|
25,454
|
|
|
|
32,269
|
|
Current lease
liabilities and other loans
|
|
|
5,389
|
|
|
|
4,531
|
|
Income tax
payable
|
|
|
1,094
|
|
|
|
902
|
|
Deferred
revenue
|
|
|
345
|
|
|
|
513
|
|
Other current
liabilities
|
|
|
13,040
|
|
|
|
19,274
|
|
Total current
liabilities
|
|
|
45,320
|
|
|
|
57,489
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
60,717
|
|
|
|
73,402
|
|
TOTAL EQUITY AND
LIABILITIES
|
|
|
1,114,460
|
|
|
|
1,126,452
|
|
|
|
|
|
|
|
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,
2019
|
|
|
24
|
|
|
|
814,177
|
|
|
|
99,513
|
|
|
|
(1,508)
|
|
|
|
912,206
|
|
Net income
|
|
|
-
|
|
|
|
-
|
|
|
|
(20,859)
|
|
|
|
-
|
|
|
|
(20,859)
|
|
Other comprehensive
income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,575)
|
|
|
|
(2,575)
|
|
Total
comprehensive income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
(20,859)
|
|
|
|
(2,575)
|
|
|
|
(23,434)
|
|
Acquisition of
treasury shares
|
|
|
-
|
|
|
|
(5,490)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,490)
|
|
Share-based
remuneration expense
|
|
|
-
|
|
|
|
-
|
|
|
|
957
|
|
|
|
-
|
|
|
|
957
|
|
As of March 31,
2020
|
|
|
24
|
|
|
|
808,687
|
|
|
|
79,611
|
|
|
|
(4,083)
|
|
|
|
884,239
|
|
|
[US$
thousands]
|
|
Share
capital
|
|
|
Other paid in
capital
|
|
|
Retained
earnings
|
|
|
Foreign currency
translation reserve
|
|
|
Total
equity
|
|
As of December 31,
2020
|
|
|
24
|
|
|
|
765,129
|
|
|
|
287,246
|
|
|
|
1,343
|
|
|
|
1,053,743
|
|
Net income
|
|
|
-
|
|
|
|
-
|
|
|
|
639
|
|
|
|
-
|
|
|
|
639
|
|
Other comprehensive
income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,316)
|
|
|
|
(1,316)
|
|
Total
comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
639
|
|
|
|
(1,316)
|
|
|
|
(677)
|
|
Acquisition of
treasury shares
|
|
|
-
|
|
|
|
(749)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(749)
|
|
Share-based
remuneration expense
|
|
|
-
|
|
|
|
-
|
|
|
|
733
|
|
|
|
-
|
|
|
|
733
|
|
As of March 31,
2021
|
|
|
24
|
|
|
|
764,381
|
|
|
|
288,618
|
|
|
|
27
|
|
|
|
1,053,049
|
|
|
|
|
UNAUDITED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
Three Months Ended
March 31,
|
|
[US$
thousands]
|
|
2020
|
|
|
2021
|
|
Cash flow from
operating activities
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
|
|
(24,816)
|
|
|
|
(189)
|
|
Income taxes
paid
|
|
|
(30)
|
|
|
|
(759)
|
|
Depreciation and
amortization
|
|
|
4,739
|
|
|
|
5,037
|
|
Share of net loss
(income) of associates and joint ventures
|
|
|
664
|
|
|
|
(145)
|
|
Equity component of
share-based payment expense
|
|
|
957
|
|
|
|
733
|
|
Net finance income
(expense)
|
|
|
8,292
|
|
|
|
(1,275)
|
|
Change in
inventories
|
|
|
423
|
|
|
|
3
|
|
Change in trade and
other receivables
|
|
|
5,413
|
|
|
|
214
|
|
Change in loans to
customers
|
|
|
48,131
|
|
|
|
(12)
|
|
Change in trade and
other payables
|
|
|
9,100
|
|
|
|
6,816
|
|
Change in deferred
revenue
|
|
|
5,647
|
|
|
|
168
|
|
Change in
prepayments
|
|
|
(9,076)
|
|
|
|
3,162
|
|
Change in other
liabilities
|
|
|
6,761
|
|
|
|
(6,725)
|
|
Other
|
|
|
(4,783)
|
|
|
|
248
|
|
Net cash flow from
(used in) operating activities
|
|
|
51,422
|
|
|
|
7,275
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
investment activities
|
|
|
|
|
|
|
|
|
Purchase of
intangibles assets
|
|
|
(358)
|
|
|
|
-
|
|
Purchase of
equipment
|
|
|
(1,411)
|
|
|
|
(1,023)
|
|
Acquisition of
subsidiary, net of cash acquired
|
|
|
(4,882)
|
|
|
|
(9,008)
|
|
Disbursement of
short-term loans
|
|
|
(4,497)
|
|
|
|
-
|
|
Repayment of
short-term loans
|
|
|
4,497
|
|
|
|
-
|
|
Deposit of collateral
for loan facility
|
|
|
(1,000)
|
|
|
|
-
|
|
Net sale (purchase)
of listed equity instruments
|
|
|
(6,119)
|
|
|
|
13,917
|
|
Development
expenditure
|
|
|
(1,577)
|
|
|
|
(852)
|
|
Interest income
received
|
|
|
145
|
|
|
|
6
|
|
Net cash flow from
(used in) investing activities
|
|
|
(15,202)
|
|
|
|
3,039
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
|
|
|
Acquisition of
treasury shares
|
|
|
(5,490)
|
|
|
|
(748)
|
|
Proceeds from loans
and borrowings
|
|
|
7,795
|
|
|
|
1,147
|
|
Interests on loans
and borrowings
|
|
|
(766)
|
|
|
|
(79)
|
|
Repayment of loans
and borrowings
|
|
|
(5,571)
|
|
|
|
-
|
|
Payment of lease
liabilities
|
|
|
(1,698)
|
|
|
|
(1,060)
|
|
Net cash flow from
(used in) financing activities
|
|
|
(5,731)
|
|
|
|
(740)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
30,490
|
|
|
|
9,575
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
139,487
|
|
|
|
134,168
|
|
Net foreign exchange
difference
|
|
|
(152)
|
|
|
|
(446)
|
|
Cash and cash
equivalents at end of period
|
|
|
169,826
|
|
|
|
143,297
|
|
|
|
|
Financial details
by business area
|
|
The tables below
specify the contribution by each business area:
|
|
[US$
thousands]
|
|
Three Months Ended
March 31, 2020
|
|
Business
area
|
|
Browser and
News
|
|
|
Other
|
|
|
Total
|
|
Revenue
categories
|
|
|
|
|
|
|
|
|
|
|
|
|
Search
|
|
|
19,664
|
|
|
|
-
|
|
|
|
19,664
|
|
Advertising
|
|
|
16,752
|
|
|
|
-
|
|
|
|
16,752
|
|
Technology licensing
and other revenue
|
|
|
-
|
|
|
|
3,779
|
|
|
|
3,779
|
|
Total
revenue
|
|
|
36,416
|
|
|
|
3,779
|
|
|
|
40,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and
platform fees
|
|
|
(547)
|
|
|
|
|
|
|
|
(547)
|
|
Content
cost
|
|
|
(1,075)
|
|
|
|
|
|
|
|
(1,075)
|
|
Cost of inventory
sold
|
|
|
-
|
|
|
|
(49)
|
|
|
|
(49)
|
|
Other cost of revenue
(1)
|
|
|
(56)
|
|
|
|
(1,106)
|
|
|
|
(1,162)
|
|
Marketing and
distribution expenses
|
|
|
(14,277)
|
|
|
|
(249)
|
|
|
|
(14,526)
|
|
Credit loss
expense
|
|
|
(320)
|
|
|
|
(924)
|
|
|
|
(1,244)
|
|
Direct
expenses
|
|
|
(16,275)
|
|
|
|
(2,328)
|
|
|
|
(18,603)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution by
business area
|
|
|
20,141
|
|
|
|
1,451
|
|
|
|
21,593
|
|
|
(1) Includes
expenses presented separately in the Statement of Operations as
part of personnel and other expenses, including audit, legal and
other advisory services, that were included in the cost invoiced
certain customers and previously reported as Cost of
revenue.
|
|
[US$
thousands]
|
|
Three Months Ended
March 31, 2021
|
|
Business
area
|
|
Browser and
News
|
|
|
Other
|
|
|
Total
|
|
Revenue
categories
|
|
|
|
|
|
|
|
|
|
|
|
|
Search
|
|
|
26,725
|
|
|
|
-
|
|
|
|
26,725
|
|
Advertising
|
|
|
22,763
|
|
|
|
667
|
|
|
|
23,430
|
|
Technology licensing
and other revenue
|
|
|
-
|
|
|
|
1,428
|
|
|
|
1,428
|
|
Total
revenue
|
|
|
49,488
|
|
|
|
2,095
|
|
|
|
51,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and
platform fees
|
|
|
(719)
|
|
|
|
(153)
|
|
|
|
(873)
|
|
Content
cost
|
|
|
(834)
|
|
|
|
(11)
|
|
|
|
(845)
|
|
Cost of inventory
sold
|
|
|
|
|
|
|
(446)
|
|
|
|
(446)
|
|
Marketing and
distribution expenses
|
|
|
(23,165)
|
|
|
|
(192)
|
|
|
|
(23,357)
|
|
Credit loss
expense
|
|
|
46
|
|
|
|
(32)
|
|
|
|
14
|
|
Direct
expenses
|
|
|
(24,672)
|
|
|
|
(834)
|
|
|
|
(25,506)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution by
business area
|
|
|
24,816
|
|
|
|
1,261
|
|
|
|
26,077
|
|
|
|
|
Personnel expenses
including share-based remuneration
|
|
The table below
specifies the amounts of personnel expenses including share-based
remuneration:
|
|
[US$
thousands]
|
|
Three Months Ended
March 31,
|
|
Personnel expenses
including share-based remuneration
|
|
2020
|
|
|
2021
|
|
Personnel expenses
excluding share-based remuneration
|
|
|
15,978
|
|
|
|
16,041
|
|
Share-based
remuneration, including related social security costs
|
|
|
475
|
|
|
|
1,054
|
|
Total
|
|
|
16,453
|
|
|
|
17,096
|
|
|
|
|
Other
expenses
|
|
The table below
specifies the nature of other expenses:
|
|
[US$
thousands]
|
|
Three Months Ended
March 31,
|
|
Other
expenses
|
|
2020
|
|
|
2021
|
|
Hosting
|
|
|
2,208
|
|
|
|
1,843
|
|
Audit, legal and
other advisory services
|
|
|
1,949
|
|
|
|
1,496
|
|
Software license
fees
|
|
|
407
|
|
|
|
414
|
|
Rent and other office
expense
|
|
|
602
|
|
|
|
866
|
|
Travel
|
|
|
678
|
|
|
|
79
|
|
Other
|
|
|
1,269
|
|
|
|
763
|
|
Total
|
|
|
7,113
|
|
|
|
5,461
|
|
|
|
|
Non-IFRS financial
measures
|
|
|
|
Three Months Ended
March 31,
|
|
[US$ thousands,
except per share and ADS amounts]
|
|
2020
|
|
|
2021
|
|
Reconciliation of net
income (loss) to adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(20,859)
|
|
|
|
639
|
|
Add: Income tax
expense (benefit)
|
|
|
1,549
|
|
|
|
(828)
|
|
Add: Net finance
expense (income)
|
|
|
6,211
|
|
|
|
(1,413)
|
|
Add: Share of net
loss (income) of associates and joint ventures
|
|
|
664
|
|
|
|
145
|
|
Add: Change in fair
value of preferred shares in associates
|
|
|
-
|
|
|
|
-
|
|
Add: Depreciation and
amortization
|
|
|
4,657
|
|
|
|
5,037
|
|
Add: Share-based
remuneration
|
|
|
475
|
|
|
|
1,054
|
|
Add: Non-recurring
expenses
|
|
|
2,072
|
|
|
|
-
|
|
Less: Other
income
|
|
|
-
|
|
|
|
(58)
|
|
Less: Profit (loss)
from discontinued operations
|
|
|
4,892
|
|
|
|
-
|
|
Adjusted
EBITDA
|
|
|
(338)
|
|
|
|
4,576
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
income (loss) to adjusted net income
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
|
(20,859)
|
|
|
|
639
|
|
Add: Share-based
remuneration
|
|
|
475
|
|
|
|
1,054
|
|
Add: Amortization of
acquired intangible assets
|
|
|
1,337
|
|
|
|
1,571
|
|
Add: Amortization of
Nanobank intangible assets(1)
|
|
|
-
|
|
|
|
1,759
|
|
Add: Non-recurring
expenses
|
|
|
2,072
|
|
|
|
-
|
|
Income tax adjustment
(2)
|
|
|
(188)
|
|
|
|
(416)
|
|
Less: Profit (loss)
from discontinued operations
|
|
|
4,892
|
|
|
|
-
|
|
Adjusted net
income
|
|
|
(12,271)
|
|
|
|
4,607
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
|
|
|
|
|
|
|
|
|
Basic,
millions
|
|
|
238.29
|
|
|
|
230.25
|
|
Diluted,
millions
|
|
|
241.64
|
|
|
|
232.69
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) per ordinary share
|
|
|
|
|
|
|
|
|
Basic, US$
|
|
|
(0.05)
|
|
|
|
0.02
|
|
Diluted,
US$
|
|
|
(0.05)
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) per ADS
|
|
|
|
|
|
|
|
|
Basic, US$
|
|
|
(0.10)
|
|
|
|
0.04
|
|
Diluted,
US$
|
|
|
(0.10)
|
|
|
|
0.04
|
|
|
(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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SOURCE Opera Limited