Oslo, Norway - August 31, 2016 - Opera Software (OSEBX: OPERA) today reported
financial results for the second quarter, which ended June 30, 2016.
2Q 2016 financial highlights include:
· § Revenue was $162.9 million in 2Q16, up from $146.2 million in 2Q15, an
increase of 11%.
· § Adjusted EBITDA* (excluding one-time costs) of $20.3 million, down 31%
versus 2Q15
· § Operating Cash Flow of $7.3m versus $31.0m in 2Q15
· § Free Cash Flow** of $0.3m versus $25.5m in 2Q15
Revenues
Revenue in 2Q16 was $162.9 million, up 11% from 2Q15, when revenue was $146.2
million. Overall, revenues came in slightly below Opera´s guidance range for the
quarter.
Profit
EBITDA, excluding stock-based compensation expenses and one-time costs, was
$20.3 million compared with $29.5 million in 2Q15, down 31%. EBITDA (excluding
one-time costs) was $17.8 million in 2Q16 compared with $27.4 million in 2Q15.
EBIT (excluding one-time costs) was $1.8 million in 2Q16 compared to $15.2
million in 2Q15. Overall, Adjusted EBITDA came in at the low end of Opera´s
guidance range for the quarter.
2Q16 IFRS Net Income was -$5.3 million compared to -$1.3 million in 2Q15. Non
-IFRS 2Q16 Net Income was $4.8 million compared to $12.6 million in 2Q15.
Liquidity and capital resources
Opera's net cash flow from operating activities was $7.3 million in 2Q16
compared to $31.0 million in 2Q15. Cash and cash equivalents at the end of 2Q16
were $117.3 million compared to $133.7 million in 2Q15. In 1Q16, Opera signed an
agreement with DNB Bank ASA to increase the size of its secured credit facility
to $285 million from $250 million. As of the end of 2Q16, $285 million of this
credit facility has been drawn.
Opera's total cash balance was impacted positively by net cash flow from
operating activities, and negatively by cash outlays related to acquisitions,
investments in research and development and capital expenditures. Capital
expenditures, which are primarily related to Opera's hosting operations, were
$1.9 million in 2Q16 versus $2.2 million in 2Q15. Capitalized R&D costs were
$5.1 million in 2Q16 versus $3.3 million in 2Q15. Cash flow related to
acquisitions was $6.6 million in 2Q16.
Operational Highlights
· § Mobile Advertising (3rd Party Publishers)
· Revenue of $114.4 million, up 23% vs. 2Q15
· Mobile video advertising revenues comprised 67% of Mobile Advertising
revenue in 2Q16 vs. 58% in 2Q15
· Audience reach (3rd Party Publishers) exceeded 1.4 billion consumers in 2Q16
compared to 1 billion in 2Q15 (including Opera´s O&O audience, audience reach
exceeded 1.6 billion in 2Q16 vs 1.3 billion in 2Q15)
· AT&T AdWorks Announced Results of Cross-screen Addressable Advertising
Trials with Advertisers
· § Consumers (Owned and Operated Properties)
· Revenue of $37.7 million, up 20% vs. 2Q15
· Opera´s Android monthly browser users reached 142 million at the end of
2Q16, up 2% versus the end of 2Q15
· Total Opera mobile consumer browser users was 262 million at the end of
2Q16, down 10% versus the end of 2Q15
· Opera became first major tech company to launch free VPN app for iOS.
· Opera launched ad blocker on all mobile platforms, powering faster browsing
on Android, iOS and Windows Phone
· Desktop users reached 55 million by the end of 2Q16, up 4% versus the end of
2Q15
· § Tech Licensing
· Revenue of $10.7 million, down 51% vs. 2Q15
· Opera TV and Vestel partnered to deliver next-generation entertainment and
interactive television experiences to European audiences
Outlook
FY16 Outlook***:
Revenue: Revenue for the company's full fiscal year 2016 is projected to be in
the range of $690m to $740m.
Adj EBITDA*: Adjusted EBITDA for the company's full fiscal year 2016 is
projected to be in the range of $100m to $125m.
FY16 Outlook (excluding Consumer Business)***/****:
Revenue: Revenue for the company's full fiscal year 2016 is projected to be in
the range of $570m to $605m.
Adj EBITDA*: Adjusted EBITDA for the company's full fiscal year 2016 is
projected to be in the range of $75m to $90m.
Please find the second quarter report (2Q16.pdf), second quarter press release
(2Q16_Press_release.pdf) and second quarter presentation (2Q16_presentation.pdf)
attached.
Webcast:
http://www.operasoftware.com/company/investors/webcasts/q22016
Petter Lade, Investor Relations
Tel: +47 2369 2400
*"Adjusted EBITDA", or Non- IFRS EBITDA, refers to EBITDA excluding stock-based
compensation expenses and one-time costs.
**Operating Cash Flow less capital expenditures and capitalized R&D costs
*** Assumes currency rates as of August 30th, 2016
**** Outlook for OMW + Opera TV + Apps&Games
This Press Release contains forward-looking statements. These statements
include, among other things, statements regarding future operations and business
strategies and future financial condition and prospects. These forward-looking
statements are subject to certain risks and uncertainties that could cause our
actual results to differ materially from those reflected in the forward-looking
statements. Factors that could cause or contribute to such differences are
covered in the Opera Software FY 2015 Annual Report under the heading "Risk
Factors." We undertake no obligation to revise or publicly release the results
of any revision to these forward-looking statements, except as required by law.
Given these risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements.
About Opera Software ASA
Opera enables 350 million internet consumers worldwide to connect with the
content and services that matter most to them. Opera also helps publishers
monetize their content through advertising and advertisers reach the audiences
that build value for their businesses, capitalizing on a global consumer
audience reach that exceeds 1 billion.