OPERA SOFTWARE ANNOUNCES FOURTH QUARTER RESULTS

Record revenue and strong profits

Oslo, Norway – February 15, 2013 – Opera Software (OSEBX: OPERA) today reported financial results for the fourth quarter, which ended December 31, 2012.

4Q 2012 financial highlights include:

  • § Revenues of MUSD 60.7, up 39% (up 40% on a constant currency basis) versus 4Q11
  • § EBIT (excluding one-time extraordinary costs) of MUSD 13.2, up 17% versus 4Q11
  • § Adjusted EBITDA* (excluding one-time extraordinary costs) of MUSD 16.8, up 21% versus 4Q11
  • § Operating Cash Flow of MUSD 16.0 versus MUSD 14.7 in 4Q11
  • § Free Cash Flow of MUSD 10.2 versus MUSD 13.4 in 4Q11

Revenues

Revenue was MUSD 60.7 in 4Q12 compared to MUSD 43.5 in 4Q11, an increase of 39%.

Profit and cash flow

EBIT, excluding the one-time extraordinary cost, was MUSD 13.2 in 4Q12 compared to MUSD 11.3 in 4Q11. EBIT, excluding stock option costs and the one-time extraordinary cost, was MUSD 14.0 in 4Q12 versus MUSD 12.0 in 4Q11. EBITDA, excluding the one-time extraordinary cost, was MUSD 16.0 in 4Q12 compared with MUSD 13.2 in 4Q11.  EBITDA, excluding stock options costs and the one-time extraordinary cost, was MUSD 16.8 compared with MUSD 13.9 in 4Q11. 

EBIT, including the one-time extraordinary cost of MUSD 7.8, was MUSD 5.3 in 4Q12 compared to MUSD 10.6 in 4Q11.

The Company’s net cash flow from operating activities was MUSD 16.0 in 4Q12 compared to MUSD 14.7 in 4Q11. 

Operational Highlights

  • § Operators

Revenues of MUSD 10.5 in 4Q12, up 6% versus 4Q11

Operator Opera Mini license/data revenue of MUSD 10.0 in 4Q12 up 16% versus 4Q11

Operator- and co-branded Opera Mini users reached 53.7 million by the end of 4Q12, up 101% versus the end of 4Q11

Opera signed up 5 new Operators in the quarter, including Entel (Chile) and Mobifone (Vietnam)

  • § Mobile Consumers – Opera Owned and Operated Properties

Revenues of MUSD 4.6 in 4Q12, up 100% versus 4Q11

Total Opera mobile browser users reached 229 million at the end of 4Q12, up 30% versus the end of 4Q11

Launched Opera Mobile 12.1, slimmer, safer and faster than ever before

Android users reached 44.6 million at the end of 4Q12, up 249% versus the end of 4Q11

  • § Desktop Consumers

Revenues of MUSD 16.6 in 4Q12, up 10% versus 4Q11

Desktop users reached 55 million by the end of 4Q12, down 4% versus the end of 4Q11

Launched Opera 12.10

 

  • § Device OEMs

Revenues of MUSD 8.8 in 4Q12, down 2% versus 4Q11

Opera announced agreement with Boxee

  • § Mobile Publishers & Advertisers – Opera Network Members

Revenues of MUSD 19.6 in 4Q12, up 379% versus 4Q11

Total mobile advertising impressions grew 95% to 140 billion in 4Q12 compared to 4Q11

Outlook

Opera remains positive about the Company’s overall growth prospects, which is expected to be driven primarily by its mobile browser and mobile advertising businesses going forward.

Within its mobile browser business, Opera continues to drive a compelling value proposition for operators, helping them increase data and services revenue streams and profitability. 

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 more than 230 million mobile browser user base by building Opera 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 capitalizes on AdMarvel’s strong position with premium USA publishers.

Opera’s key operational priorities going into 2013 include continuing to (i) sign up additional leading operators and grow active users of Opera’s existing and new products and services with existing operator customers; (ii) grow revenues and users of Opera’s mobile consumer products, particularly on the Android smartphone platform, 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; (v) build on the momentum Opera has with major ConnectedTV manufacturers; and (vi) increase Opera's overall profitability and margins.

Please find the fourth quarter report (4Q12.pdf), fourth quarter press release (4Q12_Press_release.pdf) and fourth quarter presentation (4Q12_presentation.pdf) attached.

Webcast: http://www.opera.com/company/investors/

Erik Harrell, CFO/CSO

Tel: +47 2369 2400

Petter Lade, Investor Relations

Tel: +47 2369 2400

Opera started out in 1994 as a research project within Telenor, Norway’s leading telecom. Within a year, Opera Software ASA was launched as an independent development company. Today, Opera is headquartered in Norway, with over 700 employees in offices around the world. Since the beginning, Opera’s founders and employees have shared the belief that access to the Web is a universal right. This has guided the company’s product development, and the Opera web browsers are adapted to a wide range of platforms, operating systems and embedded Internet products — including Mac, PC and Linux computers, tablets, mobile phones and PDAs, as well as various game consoles and other devices. Opera Software has always strived to develop the fastest and technologically most advanced browsers. As a result, the Opera browser is the choice of some of the world’s most demanding and knowledgeable users. At the same time, when the powerful compression technology in the full browser is applied to the Opera Mini browser, the Web is accessible on even the simplest handsets, with small screens and limited memory. This has made the Opera Mini browser the world’s most popular mobile browser. We are passionate about breaking down barriers, so everyone can share in the power of the Internet. We believe in the power of a single idea. Participation changes everything. Opera Software ASA is listed on the Oslo Stock Exchange under the ticker symbol OPERA.

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 2011 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

About Us

Opera Software ASA is an industry leader in the development of Web browsers for the desktop, device and mobile markets. The Opera browser has received international recognition from end-users and the industry press for being faster, smaller and more standards-compliant than other browsers, and it has gathered a cult following on the net.

Contacts

  • Opera Software ASA
    Waldemar Thranes gate 98 NO-0175 Oslo
    +47 24 16 40 00
    +47 24 16 40 01