Opera Limited announces second quarter 2021 financial results, revenue growth exceeds expectations and adjusted EBITDA meets expectations

Published

Q2 revenue grew 87% year-over-year driven by very strong browser and news performance

Company guides to third quarter revenue growth of 51% at the midpoint

Company raises revenue expectations, year-over-year revenue increasing 48% at the midpoint

OSLO, Norway, Aug. 12, 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 June 30, 2021.

(PRNewsfoto/Opera Limited)

Second quarter 2021 financial highlights

Three Months Ended June 30,

Year-over-

Six Months Ended June 30,

Year-over-

[US$ thousands, except for margins and per ADS amounts]

2020

2021

year %

change

2020

2021

year %

change

Revenue

32,217

60,161

86.7

%

72,411

111,744

54.3

%

Net income (loss)

17,141

44,287

158.4

%

(3,722)

44,926

n.m.

Margin

53.2

%

73.6

%

(5.1)

%

40.2

%

Adjusted EBITDA (1)

598

(1,015)

n.m.

255

3,561

1296.5

%

Margin

1.9

%

(1.7)

%

0.4

%

3.2

%

Adjusted net income (1)

19,397

49,144

153.4

%

7,123

53,751

654.6

%

Margin

60.2

%

81.7

%

9.8

%

48.1

%

Diluted net income per ADS, US$

0.13

0.38

187.9

%

(0.03)

0.39

n.m.

Diluted adjusted net income per ADS, US$ (1)

0.16

0.42

162.6

%

0.06

0.46

666.7

%

(1) Please see the separate section "About non-IFRS financial measures" for the definitions of adjusted EBITDA and adjusted net income.

"We're pleased to report yet another strong quarter and again raise revenue guidance for the year", said Opera Co-CEO Song Lin. "As people continue to shift their lives online, they want to be able to choose a browser that can be personalized to reflect the way they lead their digital lives. Opera is that browser, and we see a huge opportunity ahead of us as we continue to meet these needs. In addition, we are well underway to seize opportunities both on the content side with News and Gaming and geographic expansion to higher monetizing regions."

"Every aspect of our business is performing: the innovations and features that are attracting more users and allowing us to push into new geographies and new categories, our ability to monetize our user base, and even the value of our investments" concluded Song Lin. "We're looking forward to continued growth in 2021."

Second Quarter and Recent Business Highlights

  • Core search and advertising revenue growth rates accelerated to 94% year-over-year in Q2 driven by strong browser and news performance
  • Opera's monthly active user base was relatively stable compared to the second quarter of 2020; however, within the total our user base saw a directional shift towards higher ARPU markets. We directed our focus towards growing North America which saw 52% user growth, and Europe with 15% user growth, and less focus on Asia as we continue to target higher monetizing users
  • The Company reached 78 million average monthly PC users in the second quarter, up 4% year-over-year
  • The Opera GX browser user base now has 10 million users on desktop and already exceeds one million on mobile
  • Opera announced over 1 billion cumulative downloads on the Google Play Store
  • Opera News revenue grew 442% year-over-year and 49% sequentially versus the first quarter of 2021; Opera Football, a vertically focused news site which launched in June, and already has over 10 million users
  • Continued scaling our other strategic growth initiatives; we launched our cashback offering under the Dify brand in Spain which led to a four-fold increase in facilitated e-commerce transactions in our browsers from April to June in that market, and we continued to build out the Opera gaming platform/community
  • Hype, our in-browser messaging app for Opera Mini, launched in three more African markets during the quarter and already has over 1 million sign-ups
  • Opera monetized 29% of its stake in OPay for total consideration of $50 million

Business Outlook

"Building off the strong start to the year, we have even greater confidence and expectations for the second half of 2021" said Opera CFO, Frode Jacobsen. "The investments we have made in our 'Browser+' strategy are becoming material and apparent in our financial results, on top of healthy core browser revenue growth."

For the full year of 2021, Opera now expects revenue of $242 million to $247 million, representing a 48% year-over-year increase versus 2020 at the midpoint. Following the successful execution of our growth strategy to date, we have additional confidence in continuing our growth investments and expect adjusted EBITDA to come in between $10 and $20 million for the year.

For the third quarter of 2021, Opera expects revenue of $63 million to $65 million, representing 51% year-over-year growth at the midpoint. This is being driven by further acceleration in our core businesses and the continued growth of Opera News. Adjusted EBITDA will be around breakeven as Opera continues to invest significantly in the growth of its businesses.

Other updates

Nanobank continued its rebound with revenue of $57.3 million, a 14% sequential increase versus the prior quarter. Nanobank expects sequential growth in the second half of the year to continue at this level or higher, however the company has been required to remain cautious in light of the continued implications of COVID in its markets, in particular as it relates to India. Adjusted EBITDA was $1.6 million following a re-assessment of its credit loss provisions in light of current market conditions.

During the quarter, we monetized 29% of our stake in OPay for a total consideration of $50 million, representing a gain of $31.1 million compared to the previous carrying amount on our balance sheet. In addition, we recognized a financial gain related to the associated step-up in the fair value of our retained preference shares in OPay.

Second quarter 2021 consolidated financial results

All comparisons in this section are relative to the second quarter of 2020 unless otherwise stated. Income and expenses from our former emerging markets fintech and retail operations are not included in comparisons as they are classified as discontinued operations.

Revenue increased 87% to $60.2 million in the quarter.

  • Search revenue increased by 69% to $29.8 million driven by both PC and mobile browser monetization growth.
  • Advertising revenue increased by 128% to $28.9 million, predominantly fueled by monetization growth within Opera News and our mobile browsers.
  • Technology licensing and other revenue was $1.4 million, a $0.5 million decline compared to the same period of the previous year as we have been phasing out low-margin professional services for an investee.

Operating expenses increased by 77% to $68.2 million.

  • Combined technology and platform fees, content cost and cost of inventory sold was $2.7 million, a 24% increase following the scaling of associated revenues.
  • Personnel expenses, including share-based remuneration, were $18.5 million, a 29% increase as we are investing in new products and services. This expense consists of cash-based compensation expense of $16.5 million, and $1.9 million of share-based remuneration expense.
  • Marketing and distribution expenses were $35.3 million, an increase of 254% or $25.3 million versus Q2 2020, and 51% or $11.9 million versus Q1 2021. We are investing in accelerating the growth of our business, with Opera News in developed markets representing the biggest driver of the increases in both comparisons.
  • Depreciation and amortization expenses were $5.1 million, a 6% increase.
  • Other operating expenses were $6.4 million, a 6% decrease.

Operating loss was $7.9 million compared to an operating loss of $0.3 million in the second quarter of 2020.

Other items in the quarter include a $57.5 million increase in the fair value of our preferred shares in OPay, recorded as other income from long-term investments. This was partially offset by our share of loss from associates and joint ventures of $2.3 million. Further, we recorded a net finance loss of $4.9 million related to marketable securities held as part of our treasury function and net foreign exchange loss, as compared to a $9.2 million gain in the second quarter of 2020.

Income tax benefit was $2.0 million in the quarter.

Net income was $44.3 million. This compared to net income of $17.1 million in the second quarter of 2020.

Net income per ADS was $0.38 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 negative $1.0 million and in line with the previous guidance, representing a negative 2% adjusted EBITDA margin, compared to adjusted EBITDA of $0.6 million in the second quarter of 2020. Adjusted EBITDA excludes share-based remuneration and non-recurring expenses, as well as other income and discontinued operations.

Adjusted net income was $49.1 million in the quarter, compared to adjusted net income of $19.4 million in the second quarter of 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 $0.43 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).

Conference call

Opera's management will host a conference call to discuss the second quarter 2021 financial results on Thursday, August 12th at 8:00 am Eastern Time (EST) (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: +1 877-888-4294China: +10-800-714-1507 or +10-800-140-1382Hong Kong: +80-090-1494Norway: +47 80-01-3780United Kingdom: +44 (0) 808-101-1183International: +1 785-424-1881Confirmation Code: OPRAQ221

A live webcast of the conference call will be posted at https://investor.opera.com.

We will be tweeting highlights from our prepared remarks. Please follow along @InvestorOpera.

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, other loss (income) from long-term investments, depreciation and amortization, share-based remuneration, non-recurring expenses, and excluding other income and profit (loss) from discontinued operations.

We define adjusted net income as net income (loss) excluding share-based remuneration, amortization cost related to acquired intangible assets, amortization of Nanobank intangible assets, non-recurring expenses, and excluding profit (loss) from discontinued operations, adjusted for the associated tax benefit related to such items.

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," "may," "expect," "believe," "anticipate," "intend," "aim," "estimate," "intend," "seek, " "plan," "potential," "continue," "ongoing," "target," "guidance," "is/are likely to," "future" and similar statements. Among other things, management's quotations and the Business outlook section contain forward-looking statements. The Company may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. 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, products and services and/or upgrade its existing technologies, products and services; 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 is based on assumptions that the Company believes to be reasonable as of this date, and it 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 SEC, 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.

Learn more about Opera at www.investor.opera.com or on Twitter @InvestorOpera.

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

Three Months Ended June 30,

Six Months Ended June 30,

[US$ thousands, except per share and ADS amounts]

2020

2021

2020

2021

Revenue

32,217

60,161

72,411

111,744

Other income

-

96

5,994

154

Operating expenses

Technology and platform fees

(587)

(1,112)

(1,134)

(1,984)

Content cost

(1,548)

(741)

(2,623)

(1,586)

Cost of inventory sold

(9)

(798)

(58)

(1,244)

Personnel expenses including share-based remuneration

(14,288)

(18,461)

(30,741)

(35,556)

Marketing and distribution expenses

(9,978)

(35,301)

(24,504)

(58,658)

Credit loss expense

(32)

(320)

(1,276)

(306)

Depreciation and amortization

(4,780)

(5,080)

(9,437)

(10,117)

Non-recurring expenses

(502)

-

(2,574)

-

Other expenses

(6,751)

(6,359)

(13,864)

(11,819)

Total operating expenses

(38,475)

(68,173)

(86,211)

(121,271)

Operating profit (loss)

(265)

(7,916)

(7,809)

(9,374)

Share of net income (loss) of associates and joint ventures

(813)

(2,339)

(1,477)

(2,484)

Other income (loss) from long-term investments

6,000

57,500

6,000

57,500

Net finance income (expense)

Finance income

9,563

16

9,552

1,733

Finance expense

(196)

(3,548)

(6,116)

(3,991)

Net foreign exchange gain (loss)

(150)

(1,378)

(430)

(1,239)

Net finance income (expense)

9,217

(4,911)

3,006

(3,498)

Profit before income taxes

14,138

42,334

(281)

42,145

Income tax (expense) benefit

2,206

1,953

657

2,781

Profit from continuing operations

16,344

44,287

376

44,926

Profit (loss) from discontinued operations

797

-

(4,095)

-

Net income

17,141

44,287

(3,722)

44,926

Net income attributable to:

Equity holders of the parent

17,141

44,287

(3,722)

44,926

Non-controlling interests

-

-

-

-

Total net income attributed

17,141

44,287

(3,722)

44,926

Weighted average number of ordinary shares outstanding

Basic, millions (1)

238.04

230.29

238.17

230.28

Diluted, millions (2)

239.92

231.51

240.78

231.54

Profit per ordinary share from continuing operations

Basic, US$

0.07

0.19

0.00

0.20

Diluted, US$

0.07

0.19

0.00

0.19

Profit per ADS from continuing operations

Basic, US$

0.14

0.38

0.00

0.39

Diluted, US$

0.14

0.38

0.00

0.39

Net income per ordinary share

Basic, US$

0.06

0.19

(0.02)

0.20

Diluted, US$

0.06

0.19

(0.02)

0.19

Net income per ADS

Basic, US$

0.12

0.38

(0.03)

0.39

Diluted, US$

0.13

0.38

(0.03)

0.39

(1) As of June 30, 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 June 30,

Six Months Ended June 30,

[US$ thousands]

2020

2021

2020

2021

Net income

17,141

44,287

(3,722)

44,926

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

1,222

2,013

(1,353)

697

Reclassification of exchange differences on loss of control

(11)

-

(11)

-

Share of other comprehensive income (loss) of associates and joint ventures

-

-

-

-

Net other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods

1,211

2,013

(1,365)

697

Total comprehensive income

18,353

46,300

(5,085)

45,623

Total comprehensive income attributable to:

Equity holders of the parent

18,353

46,300

(5,085)

45,623

Non-controlling interests

-

-

-

-

Total comprehensive income attributed

18,353

46,300

(5,085)

45,623

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of December 31,

As of June 30,

[US$ thousands]

2020

2021

ASSETS

Non-current assets

Furniture, fixtures and equipment

18,167

14,846

Intangible assets

111,954

112,237

Goodwill

424,961

431,433

Long-term investments

364,946

372,421

Non-current financial assets

1,490

1,986

Deferred tax assets

4,383

3,824

Total non-current assets

925,901

936,748

Current assets

Trade receivables

28,809

34,375

Loans to customers

68

62

Other receivables

10,750

9,353

Prepayments

9,061

8,213

Inventories

-

21

Other current financial assets

856

-

Marketable securities

-

22,775

Cash and cash equivalents

134,168

178,481

Total cash, cash equivalents, and marketable securities

134,168

201,256

Total current assets

183,711

253,280

TOTAL ASSETS

1,109,612

1,190,028

EQUITY AND LIABILITIES

Equity

Share capital

24

24

Other paid in capital

765,129

764,381

Retained earnings

283,334

330,710

Foreign currency translation reserve

408

1,105

Equity attributed to equity holders of the parent

1,048,895

1,096,217

Non-controlling interests

-

-

Total equity

1,048,895

1,096,217

Non-current liabilities

Non-current lease liabilities and other loans

3,584

2,745

Deferred tax liabilities

11,745

10,889

Other non-current liabilities

68

1,413

Total non-current liabilities

15,397

15,047

Current liabilities

Trade and other payables

25,454

43,048

Current lease liabilities and other loans

5,389

3,974

Income tax payable

1,094

721

Deferred revenue

345

450

Other current liabilities

13,040

30,571

Total current liabilities

45,320

78,764

Total liabilities

60,717

93,811

TOTAL EQUITY AND LIABILITIES

1,109,612

1,190,028

 

 

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

-

-

(3,722)

-

(3,722)

Other comprehensive income (loss)

-

-

-

(1,365)

(1,365)

Total comprehensive income (loss)

-

-

(3,722)

(1,365)

(5,086)

Acquisition of treasury shares

-

(18,470)

-

-

(18,470)

Share-based remuneration expense

-

-

2,234

-

2,234

As of June 30, 2020

24

795,707

98,025

(2,873)

890,884

 

[US$ thousands]

Share capital

Other paid in

capital

Retained

earnings

Foreign

currency

translation

reserve

Total equity

As of December 31, 2020

24

765,129

283,334

408

1,048,895

Net income

-

-

44,926

-

49,173

Other comprehensive income

-

-

-

697

697

Total comprehensive income

-

-

44,926

697

45,623

Acquisition of treasury shares

-

(749)

-

-

(749)

Share-based remuneration expense

-

-

2,450

-

2,450

As of June 30, 2021

24

764,381

330,710

1,105

1,096,217

 

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

Three Months Ended June 30,

Six Months Ended June 30,

[US$ thousands]

2020

2021

2020

2021

Cash flow from operating activities

Net income (loss) before income taxes from continuing operations

14,138

42,334

(281)

42,145

Net income (loss) before income taxes from discontinued operations

2,979

-

(7,421)

-

Income taxes paid

(7,041)

(448)

(7,102)

(1,207)

Depreciation and amortization

4,817

5,080

9,556

10,117

Share of net loss (income) of associates and joint ventures

813

2,628

1,477

2,484

Other loss (income) from long-term investments

(6,000)

(57,500)

(6,000)

(57,500)

Equity component of share-based payment expense

1,277

1,717

2,234

2,450

Net finance expense (income)

(9,802)

4,773

(1,510)

3,498

Change in inventories

7,145

(24)

7,568

(21)

Change in trade and other receivables

149

(4,384)

5,562

(4,170)

Change in loans to customers

30,991

17

79,122

5

Change in trade and other payables

(37,410)

10,779

(28,309)

17,595

Change in deferred revenue

(2,310)

(63)

3,337

105

Change in prepayments

6,724

(2,315)

(2,352)

847

Change in other liabilities

(2,355)

5,285

(618)

(1,440)

Other

2,932

(1,630)

3,207

(1,382)

Net cash flow from (used in) operating activities

7,047

6,252

58,469

13,527

Cash flow from investment activities

Purchase of intangibles assets

(1,132)

-

(1,489)

-

Purchase of equipment

(822)

139

(2,233)

(884)

Acquisition of subsidiary, net of cash acquired

-

-

(4,882)

(9,008)

Disbursement of short-term loans

-

-

(4,497)

-

Release of escrow account

1,000

-

1,000

-

Repayment of short-term loans

-

-

4,497

-

Deposit of collateral for loan facility

-

-

(1,000)

-

Net sale (purchase) of listed equity instruments

(3,283)

(17,439)

(9,402)

(3,522)

Net sale (purchase) of financial assets

-

50,000

-

50,000

Development expenditure

(2,229)

(1,216)

(3,806)

(2,068)

Interest income received

281

16

426

21

Net cash flow from (used in) investing activities

(6,185)

31,500

(21,386)

34,539

Cash flow from financing activities

Acquisition of treasury shares

(12,980)

-

(18,470)

(748)

Proceeds from loans and borrowings

(890)

(1,147)

6,905

-

Interests on loans and borrowings

(939)

(89)

(1,705)

(168)

Repayment of loans and borrowings

(47,609)

(348)

(53,180)

(348)

Payment of lease liabilities

(554)

(846)

(2,252)

(1,906)

Net cash flow from (used in) financing activities

(62,972)

(2,431)

(68,702)

(3,170)

Net change in cash and cash equivalents

(62,110)

35,322

(31,620)

44,896

Cash and cash equivalents at beginning of period

169,826

143,297

139,487

134,168

Net foreign exchange difference

(2,262)

(138)

(2,414)

(584)

Cash and cash equivalents at end of period

105,454

178,481

105,454

178,481

 

 

Financial details by business area

The tables below specify the contribution by each business area:

[US$ thousands]

Three Months Ended June 30, 2020

Business area

Browser and News

Other

Total

Revenue categories

Search

17,626

-

17,626

Advertising

12,669

-

12,669

Technology licensing and other revenue

-

1,921

1,921

Total revenue

30,295

1,921

32,217

Technology and platform fees

(587)

-

(587)

Content cost

(1,548)

-

(1,548)

Cost of inventory sold

-

(9)

(9)

Other cost of revenue (1)

(50)

(1,519)

(1,569)

Marketing and distribution expenses

(9,817)

(161)

(9,978)

Credit loss expense

(32)

-

(32)

Direct expenses

(12,034)

(1,689)

(13,723)

Contribution by business area

18,261

232

18,494

(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 June 30, 2021

Business area

Browser and News

Other

Total

Revenue categories

Search

29,782

-

29,782

Advertising

28,935

7

28,942

Technology licensing and other revenue

-

1,436

1,436

Total revenue

58,717

1,443

60,161

Technology and platform fees

(930)

(182)

(1,112)

Content cost

(730)

(11)

(741)

Cost of inventory sold

(798)

-

(798)

Marketing and distribution expenses

(35,085)

(216)

(35,301)

Credit loss expense

(316)

(4)

(320)

Direct expenses

(37,859)

(413)

(38,273)

Contribution by business area

20,858

1,030

21,888

 

[US$ thousands]

Six Months Ended June 30, 2020

Business area

Browser and News

Other

Total

Revenue categories

Search

37,290

-

37,290

Advertising

29,421

-

29,421

Technology licensing and other revenue

-

5,700

5,700

Total revenue

66,711

5,700

72,411

Technology and platform fees

(1,134)

-

(1,134)

Content cost

(2,623)

-

(2,623)

Cost of inventory sold

-

(58)

(58)

Other cost of revenue

(106)

(2,625)

(2,731)

Marketing and distribution expenses

(24,094)

(410)

(24,504)

Credit loss expense

(352)

(924)

(1,276)

Direct expenses

(28,310)

(4,017)

(32,326)

Contribution by business area

38,401

1,683

40,084

 

[US$ thousands]

Six Months Ended June 30, 2021

Business area

Browser and News

Other

Total

Revenue categories

Search

56,507

-

56,507

Advertising

52,340

32

52,347

Technology licensing and other revenue

-

2,864

2,890

Total revenue

108,847

2,897

111,744

Technology and platform fees

(1,649)

(335)

(1,984)

Content cost

(1,564)

(22)

(1,586)

Cost of inventory sold

(1,244)

-

(1,244)

Marketing and distribution expenses

(58,250)

(408)

(58,658)

Credit loss expense

(270)

(36)

(306)

Direct expenses

(62,977)

(801)

(63,779)

Contribution by business area

45,870

2,095

47,965

 

Personnel expenses including share-based remuneration

The table below specifies the amounts of personnel expenses including share-based remuneration:

[US$ thousands]

Three Months Ended June 30,

Six Months Ended June 30,

Personnel expenses including share-based remuneration

2020

2021

2020

2021

Personnel expenses excluding share-based remuneration

12,712

16,544

28,690

32,585

Share-based remuneration, including related social security costs

1,576

1,917

2,051

2,971

Total

14,288

18,461

30,741

35,556

 

Other expenses

The table below specifies the nature of other expenses:

[US$ thousands]

Three Months Ended June 30,

Six Months Ended June 30,

Other expenses

2020

2021

2020

2021

Hosting

1,944

1,910

4,152

3,753

Audit, legal and other advisory services

2,105

2,447

4,054

3,943

Software license fees

576

475

983

889

Rent and other office expense

907

758

1,509

1,623

Travel

303

109

981

188

Other

916

660

2,185

1,423

Total

6,751

6,359

13,864

11,819

 

 

Non-IFRS financial measures

Three Months Ended June 30,

Six Months Ended June 30,

[US$ thousands, except per share and ADS amounts]

2020

2021

2020

2021

Reconciliation of net income (loss) to adjusted EBITDA

Net income (loss)

17,141

44,287

(3,722)

44,926

Add: Income tax expense (benefit)

(2,206)

(1,953)

(657)

(2,781)

Add: Net finance expense (income)

(9,217)

4,911

(3,006)

3,498

Add: Share of net loss (income) of associates and joint ventures

813

2,339

1,477

2,484

Add: Other loss (income) from long-term investments

(6,000)

(57,500)

(6,000)

(57,500)

Add: Depreciation and amortization

4,780

5,080

9,437

10,117

Add: Share-based remuneration

1,576

1,917

2,051

2,971

Add: Non-recurring expenses

502

-

2,574

-

Less: Other income

(5,994)

(96)

(5,994)

(154)

Less: Profit (loss) from discontinued operations

(797)

-

4,095

-

Adjusted EBITDA

598

(1,015)

255

3,561

Reconciliation of net income (loss) to adjusted net income

Net Income (loss)

17,141

44,287

(3,722)

44,926

Add: Share-based remuneration

1,576

1,917

2,051

2,971

Add: Amortization of acquired intangible assets

1,336

1,571

2,673

3,142

Add: Amortization of Nanobank intangible assets (1)

-

1,759

-

3,518

Add: Non-recurring expenses

502

-

2,574

-

Income tax adjustment (2)

(360)

(389)

(548)

(805)

Less: Profit (loss) from discontinued operations

(797)

-

4,095

-

Adjusted net income

19,397

49,144

7,123

53,751

Weighted average number of ordinary shares outstanding

Basic, millions

238.04

230.29

238.17

230.28

Diluted, millions

239.92

231.51

240.78

231.54

Adjusted net income (loss) per ordinary share

Basic, US$

0.08

0.21

0.03

0.23

Diluted, US$

0.08

0.21

0.03

0.23

Adjusted net income (loss) per ADS

Basic, US$

0.16

0.43

0.06

0.47

Diluted, US$

0.16

0.42

0.06

0.46

(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

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