OPERA SOFTWARE ANNOUNCES FOURTH QUARTER RESULTS
Strong revenue growth, significant increase in profitability and strong
Oslo, Norway - February 16, 2012 - Opera Software (OSEBX: OPERA) today
reported financial results for the fourth quarter which ended December
4Q 2011 financial highlights include:
· § Revenues of MNOK 253.1, up 31% (up 34% on a constant currency
basis) versus 4Q10
· § EBIT of MNOK 67.6, excluding one-time extraordinary costs, up 95%
· § Adjusted EBITDA* of MNOK 82.9, excluding one-time extraordinary
costs, up 82% versus 4Q10
· § Operating Cash Flow of MNOK 104.4 versus MNOK 25.5 in 4Q10
· § Free Cash Flow of MNOK 96.7 versus MNOK 11.6 in 4Q10
Revenue in 4Q11 was MNOK 253.1, up 31% from 4Q10, when revenue was MNOK
193.6. On a constant currency basis, 4Q11 revenues increased 34%
compared to 4Q10.
Revenue from Internet Devices grew to MNOK 165.6 in 4Q11 compared to
MNOK 122.7 in 4Q10, an increase of 35%.
4Q11 saw strong revenue growth from Desktop, Device OEMs and Mobile
Consumers and Publishers & Advertisers, a slight increase in revenue
from Mobile OEMS and a slight decrease in revenue from Operators
compared to 4Q10. In general, Opera continued to see a marked shift in
the revenue mix towards recurring revenue streams, from active user
license fees from operators, search and mobile advertising.
Revenue from Desktop rose 23% in 4Q11 to MNOK 87.5, compared to MNOK
70.9 in 4Q10, with users up approximately 12% versus the end of 4Q10.
The main contributors to higher ARPU in the quarter versus 4Q10 were
affiliate revenue and strong growth in revenue from local search
providers such as Yandex.
Profit and cash flow
EBIT (excluding one-time extraordinary costs) was MNOK 67.6 in 4Q11
compared to MNOK 34.6 in 4Q10. EBIT (excluding one-time extraordinary
costs and stock option costs) was MNOK 71.8 in 4Q11 versus MNOK 39.8 in
4Q10. EBITDA (excluding one-time extraordinary costs) was MNOK 78.8 in
4Q11 compared with MNOK 41.1 in 4Q10. EBITDA (excluding one-time
extraordinary costs and stock option costs) was MNOK 82.9 compared with
MNOK 45.4 in 4Q10.
EBIT, including the one-time extraordinary cost of MNOK 3.8, was MNOK
63.8 in 4Q11 compared to MNOK 29.1 in 4Q11. EBITDA, including the
one-time extraordinary costs but excluding stock options costs, was MNOK
79.1, compared to MNOK 39.9 in 4Q11.
The Company's net cash flow from operating activities was MNOK 104.4 in
4Q11 compared to MNOK 25.5 in 4Q10. 4Q11 cash flow from operating
activities was impacted positively by strong profitability and changes
in net working capital.
Changes in cash were impacted positively by net cash flow from operating
activities and negatively by capital expenditures and share buybacks.
Capital expenditures, which are primarily related to Opera's hosting
operations, were MNOK 7.7 in 4Q11 versus MNOK 12.2 in 4Q10.
· § Operators
Revenues of MNOK 57.6 in 4Q11, down 5% versus 4Q10
Operator Opera Mini license/data revenue up 41% to MNOK 49.7 in 4Q11
Operator and co-branded Opera Mini users reached 26.7 million by the end
of 4Q11, up 152% versus the end of 4Q10
5 new operator agreements were announced, including, Orange, Orascom,
Etisalat and Bakcell in addition to continued roll out from existing
customers like MTN in Nigeria and Rwanda and Vodafone in Czech Republic
· § Desktop Consumers
Revenues of MNOK 87.5 in 4Q11, up 23% versus 4Q10
Desktop users reached 57 million by the end of 4Q11, up 12% versus 4Q10
· § Mobile Consumers and Publishers & Advertisers
Revenues of MNOK 37.4 up 239% versus 4Q10
Opera-branded Opera Mini users reached 152.7 million at the end of 4Q11,
up 78% versus 4Q10
Opera Mini 6.5 released for iPhone, iPad, Blackberry, Symbian S60, Java
and Android and Opera Mobile 11.5 released on Android and Symbian S60
Total advertising impressions from AdMarvel grew 134% to 72 billion in
4Q11 compared to 4Q10
· § Mobile OEMs
Revenues of MNOK 14.3 in 4Q11, up 10% versus 4Q10
Opera Mini mobile browsers to ship worldwide on MediaTek's MRE Platform
· § Device OEMs
Revenues of MNOK 52.3 in 4Q11, up 46% versus 4Q10
Signed TV Store agreement with leading consumer electronics manufacturer
Opera remains positive about the Company's growth prospects.
Going into 2012, Opera continues to drive a compelling value proposition
for operators, helping such customers as Vodafone and Telkomsel increase
data and service revenue streams and profitability.
In the ConnectedTV segment, Opera has established itself as the leading
independent provider of web browsers to TV manufacturers and the recent
launch of the Opera TV Store puts the company in a stronger position to
continue to win business among the major players in the industry.
Opera also continues to deliver a very compelling value proposition to
its rapidly burgeoning mobile consumer base, providing a fast and data
saving and thereby cheaper browser experience. Moreover, Opera expects
to monetize this user base and the billions of daily web page traffic
generated by these users to a much greater extent in 2012 compared to
2011, from advertising, applications and search.
Opera also intends and expects to generate meaningfully more revenue
from mobile publishers and advertisers in 2012 compared to 2011, as
AdMarvel leverages its strong position with premium USA publishers to
generate much more revenue directly from advertisers and ad agencies.
The Company also sees positive growth prospects from its Desktop
product, particularly as a result of user growth in Russia/CIS and the
emerging markets in general.
Opera's key operational priorities in 2012 include continuing to (i)
sign up additional leading operators and grow active users of Opera
products and services with existing operator customers; (ii) grow
revenues and users of Opera's consumer products (Desktop, Opera-branded
Opera Mini and Opera Mobile), with Android being Opera's most important
smartphone platform; (iii) increase revenue from mobile publishers and
advertisers; (iv) increase Opera's position with top mobile phone OEMs
and chipset manufacturers globally to drive greater distribution of
Opera's mobile products; (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 (4Q11.pdf), fourth quarter press
release (4Q11_Press_release.pdf) and presentation
Erik Harrell, CFO/CSO
Tel: +47 2416 4053
Petter Lade, Investor Relations
Tel: +47 2369 3444
About Opera Software
Opera Software ASA has redefined Web browsing for PCs, mobile phones and
other networked devices. Opera's cross-platform Web browser technology
is renowned for its performance, standards compliance and small size,
while giving users a faster, safer and more dynamic online experience.
Opera Software is headquartered in Oslo, Norway, with offices around the
world. The company is listed on the Oslo Stock Exchange under the ticker
symbol OPERA. Learn more about Opera at http://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
2010 Annual Report on page 14,
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
*"Adjusted EBITDA" refers to EBITDA excluding stock option costs