OPERA SOFTWARE ANNOUNCES FIRST QUARTER RESULTS
Record revenue and profits
Oslo, Norway – April 30, 2013 – Opera Software (OSEBX: OPERA) today reported financial results for the first quarter, which ended March 31, 2013.
1Q 2013 financial highlights include:
- § Revenues of MUSD 62.0, up 32% versus 1Q12
- § EBIT (excluding one-time extraordinary costs) of MUSD 14.3, up 15% versus 1Q12
- § Adjusted EBITDA* (excluding one-time extraordinary costs) of MUSD 18.0, up 18% versus 1Q12
- § Operating Cash Flow of MUSD 3.0 versus MUSD 12.0 in 1Q12
- § Free Cash Flow of MUSD 0.5 versus MUSD 10.2 in 1Q12
Revenue was MUSD 62.0 in 1Q13 compared to MUSD 46.9 in 1Q12, an increase of 32%.
Profit and cash flow
EBIT, excluding the one-time extraordinary costs, was MUSD 14.3 in 1Q13 compared to MUSD 12.4 in 1Q12. EBITDA, excluding the one-time extraordinary costs, was MUSD 17.1 in 1Q13 compared with MUSD 14.4 in 1Q12. EBITDA, excluding stock options costs and the one-time extraordinary costs , was MUSD 18.0 compared with MUSD 15.2 in 1Q12. EBIT, including one-time extraordinary costs, was MUSD 12.8 in 1Q13 compared to MUSD 11.6 in 1Q12.
The Company’s net cash flow from operating activities was MUSD 3.0 in 1Q13 compared to MUSD 12.0 in 1Q12. 1Q13 cash flow from operating activities was impacted positively by strong profitability and negatively by changes in working capital. Opera’s cash balance was impacted positively by net cash flow from operating activities and a loan provided by DnB Bank ASA and negatively by investments in R&D, capital expenditures and acquisitions. Capital expenditures, which are primarily related to Opera’s hosting operations, were MUSD 2.5 in 1Q13 versus MUSD 1.8 in 1Q12.
- § Mobile Operators
Revenues of MUSD 12.7 in 1Q13, up 22% versus 1Q12
Operator cloud based license/data revenue of MUSD 11.8 in 1Q13 up 30% versus 1Q12
Operator active users reached 66.7 million by the end of 1Q13, up 114% versus the end of 1Q12
Expanded relationship with Telenor to include additional Opera services
Launched Web Pass with Bharti Airtel and VimpelCom
Opera acquired privately held Skyfire, a global leader in mobile video optimization and cloud solutions for mobility
- § Mobile Consumer s – Opera Owned and Operated Properties
Revenues of MUSD 7.5 in 1Q13, up 152% versus 1Q12
Total Opera mobile consumer users reached 249 million at the end of 1Q13, up 29% versus the end of 1Q12
Launched the first iteration of the new generation of Opera browsers for smartphones
Android users reached 53.4 million at the end of 1Q13, up 161% versus the end of 1Q12
- § Mobile Publishers & Advertisers – Opera Network Members
Revenues of MUSD 18.4 in 1Q13, up 166% versus 1Q12
Total mobile advertising impressions grew 89% to 163 billion in 1Q13 compared to 1Q12
Announced the launch of the Opera Mediaworks brand, which focuses on providing advertising, content distribution and monetization services to the global mobile marketplace
- § Desktop Consumers
Revenues of MUSD 17.5 in 1Q13, up 4% versus 1Q12
Desktop users reached 55 million by the end of 1Q13, down 8% versus the end of 1Q12
- § Device OEMs
Revenues of MUSD 5.4 in 1Q13, down 31% versus 1Q12
Opera ann ounced that MediaTek had integrated the Opera TV Store into its Smart TV solution
Opera remains positive about the Company’s overall growth prospects, which is expected to be driven primarily by its mobile businesses going forward.
Within its mobile business, Opera continues to drive a compelling value proposition for operators, helping them increase data and services revenue streams and profitability. With the acquisition of Skyfire, Opera has added a robust portfolio of smartphone targeted products and services which the Company can now offer to existing and prospective operator customers. As a result, Opera expects to generate solid revenue growth from its operator business in 2013.
Moreover, Opera continues to deliver a very compelling value proposition to its rapidly burgeoning mobile consumer base, providing a fast and data saving, and thereby cheaper, browsing experience. Opera’s strategy is to capitalize on its close to 250 million mobile browser user base by building and expanding Opera´s owned and operated properties and monetizing these properties via mobile advertising, mobile search and mobile applications.
Within Opera’s Mobile Publisher & Advertiser business (Opera Network Members), Opera expects to generate meaningfully more revenue from this business in 2013 compared to 2012, as Opera continues to ramp up revenue directly from advertisers and ad agencies via its mobile advertising network subsidiaries, Mobile Theory and 4th Screen Advertising, and capitalize on AdMarvel’s strong position with premium USA publishers.
Opera’s key operational priorities going into 2013 include continuing to (i) sign operator agreements for Opera’s existing and new products and services, including Skyfire´s; (ii) grow revenues and users of Opera’s mobile consumer products, particularly on the Android and iOS smartphone platforms, and expand usage and monetization of Opera’s owned and operated properties; (iii) increase revenue from Mobile Publishers and Advertisers (Opera Network Members), by expanding Opera’s demand side advertising reach and capabilities; (iv) grow Opera’s desktop user base, particularly in Russia/CIS; and (v) increase Opera’s overall profitability and margins.
Please find the first quarter report (1Q13.pdf), first quarter press release (1Q13_Press_release.pdf) and first quarter presentation (1Q13_presentation.pdf) attached.
Erik Harrell, CFO/CSO
Tel: +47 2369 2400
Petter Lade, Investor Relations
Tel: +47 2369 2400
The worldwide World Wide Web - any device, any platform, any bandwidth, absolutely anywhere in the world. Opera Software was founded in 1994, based on the idea that access to the web should be a universal right. 300 million people (and counting) use the Opera web browsers for computers, mobile phones, TVs and other connected devices. Opera also delivers tools, distribution, engagement, monetization and market insights to developers, publishers and brands around the world. We are passionate about breaking down barriers, so everyone can share in the power of the internet. Our vision of one web for all remains at the heart of what we do, because we believe that participation changes everything. Opera Software ASA is listed on the Oslo Stock Exchange under the ticker symbol OPERA. 'Opera', 'Opera Software', 'Opera Mini' and the 'O' logo are trademarks of Opera Software ASA. All other trademarks are the property of their respective owners. Learn more about Opera at www.opera.com.
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 2012 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.
*“Adjusted EBITDA” refers to EBITDA excluding stock option costs