opra20230811_6k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 


 

FORM 6-K

 


 

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2023

 

Commission File Number: 001-38588

 

 


 

OPERA LIMITED

 


 

Vitaminveien 4,

0485 Oslo, Norway

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☑ Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

 

 

Exhibit 99.1         Press release -- Opera Reports Both Revenue and Adjusted EBITDA Above Guidance in its Second Quarter 2023 Results

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Opera Limited

 

 

 

 

 

 

 

 

 

 

By:

/s/ James Yahui Zhou

 

 

Name:

James Yahui Zhou

 

 

Title:

Chairman of the Board and

Chief Executive Officer

 

 

 

Date: August 24, 2023

 

 

 
HTML Editor

Exhibit 99.1

 

Opera Reports Both Revenue and Adjusted EBITDA Above Guidance in its Second Quarter 2023 Results

 

10th consecutive quarter of 20+% revenue growth, exceeding the high end of previously issued guidance on both revenue and adjusted EBITDA

 

Q2 revenue grew 21% year-over-year, with an adjusted EBITDA margin of 22%

 

Company released Opera One, the latest version of Operas flagship browser, incorporating new functionality and a redesigned experience

 

Opera introduced Aria, a fully integrated browser AI

 

Company announced a recurring semi-annual dividend of $0.40 per ADS ($0.80 annualized)

 

Company raises both revenue and adjusted EBITDA guidance for 2023

 

 

OSLO, Norway, August 24, 2023 /PRNewswire/ – Opera Limited (NASDAQ: OPRA), one of the world’s major browser developers and a leading internet consumer brand, announced its unaudited financial results for the quarter ended June 30, 2023.

 

Second Quarter and first half 2023 Financial Highlights (in thousands, except percentages and per share amounts, unaudited)

 

   

Three Months Ended June 30,

   

Year-over-year

   

Six Months Ended June 30,

   

Year-over-year

 

 

 

2022

   

2023

    % change    

2022

   

2023

    % change  

Revenue

  $ 77,834     $ 94,134       21 %   $ 149,417     $ 181,185       21 %
                                                 

Net income (loss)

  $ (5,836 )   $ 13,537       NM     $ (15,271 )   $ 29,015       NM  

Margin

    (7.5 )%     14.4 %             (10.2 )%     16.0 %        
                                                 

Adjusted EBITDA (1)

  $ 16,569     $ 20,466       24 %   $ 23,918     $ 42,204       76 %

Margin

    21.3 %     21.7 %             16.0 %     23.3 %        
                                                 

Diluted earnings per ADS (2)

  $ (0.05 )   $ 0.15       NM     $ (0.13 )   $ 0.32       NM  
                                                 

Free cash flow from operations (1)

  $ (3,974 )   $ 13,216       NM     $ 7,536     $ 36,533       385 %

______

(1) See "Non-IFRS Financial Measures" and "Reconciliations of Non-IFRS Financial Measures" sections below for explanations and reconciliations of non-IFRS financial measures.

(2) Opera Limited has American depositary shares (ADSs) listed on the Nasdaq Global Select Market, each representing two ordinary shares in the company.

 

“The second quarter of 2023 was our 10th consecutive quarter of revenue growth in excess of 20%, fueled by our strong product lineup and continued scaling among high-value users. Revenue outperformance and ongoing cost discipline translated into profits also exceeding our expectations,” said co-CEO Lin Song.

 

“During the quarter we were able to deliver several product updates that point to continued innovation and our ability to quickly iterate. We were able to roll out an entirely new generation of our flagship desktop browser, Opera One, and introduce the world to ‘Aria’, our unique AI chat bot that is currently available to users of Opera for Android, Opera for iOS, and Opera One. As anticipated, Aria users are displaying increased engagement with the Opera browser, and we remain very excited about the continuation of this roll-out across our user base,” continued Mr. Song.

 

“In particular, the much anticipated roll-out of Aria to Opera GX is scheduled for the third quarter of 2023. While still early days, we believe that the increased engagement we are already seeing will become an additional driver in our ability to grow monetization as more and more of our users upgrade to newer versions of our browsers and take advantage of this integrated service,” finished Mr. Song.

 

Second Quarter and Recent Business Highlights

 

 

Advertising revenue grew 25% year-over-year, and now constitutes 57% of total revenue. This revenue category was driven by Opera Ads, which continues to exceed expectations, and ongoing monetization growth for mobile and GX browsers.

 

Search revenue grew 15% year-over-year. The growth in search revenue continues to be driven by our focus on users with the highest monetization potential in western markets.

 

Opera had 316 million monthly active users (MAUs) in the second quarter of 2023, down slightly versus the first quarter following our continued strategy of focusing on higher monetizing users. The user base in Western Europe and North America accounted for 15% of our total footprint.

 

In the second quarter of 2023, annualized ARPU was $1.17, an increase of 25% versus the second quarter of 2022.

 

The Opera GX gaming browser had 23.7 million monthly active users across PC and mobile in the quarter, up 9% from 21.7 million in the first quarter.

 

Opera One, our new flagship browser was made available to all desktop users.

 

Aria, Opera’s AI chat bot, was added to Opera One and Opera for Android during the quarter and is now also available on Opera for iOS.

 

In June 2023, Opera announced an ongoing dividend of $0.80 per ADS per annum to be paid semi-annually. The first record date was in June, with payment in July.

 

At the end of the second quarter, our cash position was $98 million, up $13 million relative to our cash position of $85 million at the start of the quarter. In addition to our cash balance, we have a combined $196 million of assets held for sale and receivables on our balance sheet, reflecting our 9.5% stake in OPay and remaining receivables from the sale of Star X in 2022.

 

 

 

Business Outlook

 

“The second quarter of 2023 continued the trend of revenue and EBITDA exceeding guidance, and as a result we are once again raising our full year guidance,” said Frode Jacobsen, CFO.

 

“Furthermore, our healthy cash flow and strong balance sheet enabled us to become a recurring dividend payer in the quarter, a milestone I am incredibly proud of,” concluded Mr. Jacobsen.

 

For the full year of 2023, Opera is raising the previously issued guidance of revenue to be $380 million to $390 million, up from $373 million to 390 million. We guide adjusted EBITDA to be between $80 million and $84 million, or a 21% margin at the midpoints, up from $77 million to $83 million.

 

For the third quarter of 2023, Opera expects revenue of $97 million to $100 million, representing 15% year-over-year growth at the midpoint. Adjusted EBITDA is expected to be between $18.5 million and $20.5 million, representing a 20% margin at the midpoint.

 

Second Quarter 2023 Financial Results

 

All comparisons in this section are relative to the second quarter of 2022 unless otherwise stated.

 

Revenue increased by 21% to $94.1 million.

 

Advertising revenue increased by 25% to $53.8 million.

 

Search revenue increased by 15% to $38.9 million.

 

Technology licensing and other revenue was $1.5 million.

 

Operating expenses increased by 22% to $81.7 million.

 

Combined technology and platform fees, content cost and cost of inventory sold were $22.6 million, or 24% of revenue.

 

Personnel expenses, including share-based remuneration, were $21.4 million. This expense consists of cash-based compensation expense of $16.7 million, a 5% decrease year-over-year, and share-based remuneration expense of $4.6 million. Share-based remuneration includes grants made by Opera’s majority shareholder, which represents an expense in the P&L even though Opera has no obligation in connection with these grants, and they do not represent dilution for Opera’s shareholders.

 

Marketing and distribution expenses were $27.0 million, an increase of 7%.

 

Depreciation and amortization expenses were $3.4 million, a 2% decrease.

 

All other operating expenses were $7.4 million, a 5% increase.

 

Operating profit was $12.5 million, a 13% margin, compared to an operating profit of $11.2 million and a margin of 14% in the second quarter of 2022.

 

Net finance income was $2.2 million, inclusive of interest income on bank deposits and time-value changes of our Star X receivable, compared to a net finance expense of $13.3 million in the second quarter of 2022.

 

Income tax expense was $1.1 million, compared to $3.7 million in the second quarter of 2022.

 

Net income was $13.5 million, an 14% margin. This compared to a net loss of $5.8 million in the second quarter of 2022.

 

Basic earnings per ADS was $0.15 in the second quarter of 2023, compared to a net loss per ADS of $0.05 in the second quarter of 2022. In the second quarter of 2023, the weighted average number of ordinary shares outstanding was 179.8 million, corresponding to 89.9 million ADSs.

 

Adjusted EBITDA was $20.5 million, representing a 22% margin, compared to adjusted EBITDA of $16.6 million in the second quarter of 2022.

 

Free cash flow from operations was $13.2 million, compared to a net cash outflow of $4.0 million in the second quarter of 2022.

 

We have posted Opera’s unaudited financial results by quarter since 2019 at https://investor.opera.com/financial-information/quarterly-results.

 

 

 

Conference Call

 

Opera’s management will host a conference call to discuss the second quarter 2023 financial results on Thursday, August 24th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:

 

United States: +1 800-895-3361

China: +10-800-714-1507 or +10-800-140-1382

Hong Kong: +80-090-1494

Norway: +47 80-01-3780

United Kingdom: +44 0-808-101-1183

International: +1 785-424-1062

Confirmation Code: OPRAQ223

 

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 on Twitter/X, @InvestorOpera.

 

Non-IFRS Financial Measures

 

We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to revenue, net income (loss), operating profit (loss), and other financial measures under IFRS, we use adjusted EBITDA and free cash flow from operations, which are described below, to evaluate our business. We use these non-IFRS financial measures for financial and operational decision-making and as means to evaluate period-to-period comparisons. While these non-IFRS financial measures should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with IFRS, we believe that these measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of recurring core business operating results.

 

We believe these non-IFRS financial measures are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and because they are used by our institutional investors and the analyst community to help them analyze the health of our business. Accordingly, we believe that these non-IFRS financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Our calculation of these non-IFRS financial measures may differ from similarly-titled non-IFRS measures, if any, reported by our peers.

 

We define adjusted EBITDA as net income (loss) excluding (i) profit (loss) from discontinued operations, (ii) income tax (expense) benefit, (iii) net finance income (expense), (iv) share of net income (loss) of equity-accounted investees, (v) impairment of equity-accounted investees, (vi) fair value gain (loss) on investments, (vii) depreciation and amortization, (viii) impairment of non-financial assets, (ix) share-based remuneration, including related social security costs, (x) non-recurring expenses, and (xi) other operating income.

 

We define free cash flow from operations as net cash flows from (used in) operating activities less (i) purchases of fixed and intangible assets, (ii) development expenditure and (iii) payment of lease liabilities.

 

 

 

Safe Harbor Statement

 

This press release contains statements of a forward-looking nature. These statements, including statements relating to the Company’s 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 and the industry in which it operates. Potential risks and uncertainties include, but are not limited to, those relating to: the duration and development of the conflict in Ukraine and related economic sanctions, as well as resulting changes in consumer behaviors; the outcome of regulatory processes or litigation; the Company and its goals and strategies; expected development and launch, and market acceptance, of products and services; Company’s expectations regarding demand for and market acceptance of its 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 the Company has business. 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 web innovator building on more than 25 years of innovation that started with the Opera web browser. While Opera is leveraging its brand and engaged user base in order to grow and develop new products and services for people who seek a better internet experience, Opera's PC and mobile web browsers, content discovery platform Opera News, and apps dedicated to gaming, Web3 and e-commerce are already the trusted choices of hundreds of millions of active and engaged users. Opera is headquartered in Oslo, Norway, and listed on the Nasdaq Global Select Market under the ticker symbol “OPRA”. Download and access Opera's products and services from www.opera.com.

 

Learn more about Opera at https://investor.opera.com or on X, formerly Twitter, @InvestorOpera.

 

Contacts

 

Investor relations:

Matthew Wolfson

investor-relations@opera.com

 

Media:

press-team@opera.com

 

 

 

Opera Limited

Consolidated Statement of Operations

(In thousands, except number of shares which are reflected in millions and per share amounts, unaudited)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Revenue

  $ 77,834     $ 94,134     $ 149,417     $ 181,185  

Other operating income

    70       51       242       180  

Operating expenses:

                               

Technology and platform fees

    (1,064 )     (1,114 )     (2,284 )     (1,956 )

Content cost

    (1,059 )     (1,094 )     (2,103 )     (1,983 )

Cost of inventory sold

    (9,719 )     (20,357 )     (15,504 )     (35,523 )

Personnel expenses including share-based remuneration

    (19,071 )     (21,370 )     (35,499 )     (41,423 )

Marketing and distribution expenses

    (25,285 )     (26,996 )     (59,424 )     (51,393 )

Credit loss expense

    (67 )     (47 )     (111 )     (2,446 )

Depreciation and amortization

    (3,421 )     (3,356 )     (7,011 )     (6,735 )

Non-recurring expenses

    (500 )     -       (1,208 )     -  

Other operating expenses

    (6,477 )     (7,315 )     (13,933 )     (13,422 )

Total operating expenses

    (66,664 )     (81,650 )     (137,077 )     (154,880 )

Operating profit (loss)

    11,240       12,535       12,582       26,485  

Share of net loss of equity-accounted investees

    -       -       (6 )     -  

Net finance income (expense):

                               

Finance income

    2,282       1,361       2,437       6,723  

Finance expense

    (15,341 )     (80 )     (25,288 )     (453 )

Net foreign exchange gain (loss)

    (276 )     869       (648 )     676  

Net finance income (expense)

    (13,334 )     2,150       (23,498 )     6,946  

Profit (loss) before income taxes

    (2,094 )     14,684       (10,922 )     33,431  

Income tax (expense) benefit

    (3,742 )     (1,148 )     (4,350 )     (4,416 )

Net income (loss) attributable to owners of the parent

  $ (5,836 )   $ 13,537     $ (15,271 )   $ 29,015  
                                 

Weighted-average number of shares outstanding:

                               

Basic, ADS equivalent

    114.75       89.90       115.28       89.84  

Diluted, ADS equivalent

    114.75       91.31       115.28       91.20  

Basic, ordinary shares

    229.50       179.79       230.56       179.68  

Diluted, ordinary shares

    229.50       182.63       230.56       182.41  
                                 

Earnings per ADS and per ordinary share:

                               

Basic earnings per ADS

  $ (0.05 )   $ 0.15     $ (0.13 )   $ 0.32  

Diluted earnings per ADS

  $ (0.05 )   $ 0.15     $ (0.13 )   $ 0.32  

Basic earnings per ordinary share

  $ (0.03 )   $ 0.08     $ (0.07 )   $ 0.16  

Diluted earnings per ordinary share

  $ (0.03 )   $ 0.07     $ (0.07 )   $ 0.16  

 

 

 

Opera Limited

Consolidated Statement of Comprehensive Income

(In thousands, unaudited)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Net income (loss)

  $ (5,836 )   $ 13,537     $ (15,271 )   $ 29,015  

Other comprehensive income (loss):

                               

Items that may be reclassified to the statement of operations in subsequent periods (net of tax):

                               

Exchange differences on translation of foreign operations

    (2,073 )     (1,219 )     (2,841 )     (1,167 )

Reclassification of share of other comprehensive income (loss) of equity-accounted investees

    -       -       708       -  

Other comprehensive income (loss)

    (2,073 )     (1,219 )     (2,133 )     (1,167 )

Total comprehensive income (loss) attributable to owners of the parent

  $ (7,908 )   $ 12,318     $ (17,403 )   $ 27,848  

 

 

 

Opera Limited

Consolidated Statement of Financial Position

(In thousands, unaudited)

 

   

As of December 31,

   

As of June 30,

 
   

2022

   

2023

 

Assets:

               

Property and equipment

  $ 14,623     $ 13,852  

Intangible assets

    99,983       98,781  

Goodwill

    429,445       429,836  

Non-current receivables from sale of investments

    76,305       7,545  

Non-current investments and financial assets

    2,643       2,589  

Deferred tax assets

    1,473       1,393  

Total non-current assets

    624,473       553,997  
                 

Trade receivables

    57,923       55,270  

Current receivables from sale of investments

    56,347       24,545  

Other current receivables

    17,247       4,869  

Prepayments

    3,932       8,245  

Marketable securities

    66,250       -  

Cash and cash equivalents

    52,414       98,155  

Total cash, cash equivalents, and marketable securities

    118,664       98,155  

Assets held for sale

    86,100       163,462  

Total current assets

    340,213       354,546  

Total assets

  $ 964,686     $ 908,543  
                 

Equity:

               

Share capital

  $ 18     $ 18  

Other paid in capital

    824,832       824,832  

Treasury shares

    (206,514 )     (208,584 )

Retained earnings

    273,262       204,780  

Foreign currency translation reserve

    (3,385 )     (4,553 )

Total equity attributable to owners of the parent

    888,213       816,493  
                 

Liabilities:

               

Non-current lease liabilities and other loans

    4,723       5,273  

Deferred tax liabilities

    7,352       4,207  

Other non-current liabilities

    68       59  

Total non-current liabilities

    12,143       9,539  
                 

Trade and other payables

    46,937       47,242  

Deferred revenue

    995       4,845  

Dividends payable

    -       10,832  

Current lease liabilities and other loans

    3,112       2,787  

Income tax payable

    1,133       6,228  

Other current liabilities

    12,152       10,578  

Total current liabilities

    64,330       82,511  

Total liabilities

    76,472       92,050  

Total equity and liabilities

  $ 964,686     $ 908,543  

 

 

 

Opera Limited

Consolidated Statement of Changes in Equity

(In thousands, except number of shares, unaudited)

 

For the six months ended June 30, 2022:

 

   

Number of shares outstanding

   

Equity attributable to owners of the parent

 
   

Ordinary shares

   

ADS equivalent

   

Share capital

   

Other paid in capital

   

Treasury shares

   

Retained earnings

   

Foreign currency translation reserve

   

Total equity

 

As of January 1, 2022

    230,291,732       115,145,866     $ 24     $ 824,832     $ (60,453 )   $ 249,155     $ (520 )   $ 1,013,039  

Net income (loss)

    -       -       -       -       -       (15,271 )     -       (15,271 )

Other comprehensive income (loss)

    -       -       -       -       -       -       (2,133 )     (2,133 )

Share-based remuneration

    -       -       -       -       -       3,487       -       3,487  

Issuance of shares upon exercise of RSUs and options

    1,597,500       798,750       -       -       -       -       -       -  

Acquisition of treasury shares

    (3,649,220 )     (1,824,610 )     -       -       (9,868 )     -       -       (9,868 )

As of June 30, 2022

    228,240,012       114,120,006     $ 24     $ 824,832     $ (70,321 )   $ 237,371     $ (2,653 )   $ 989,254  

 

 

For the six months ended June 30, 2023:

 

   

Number of shares outstanding

   

Equity attributable to owners of the parent

 
   

Ordinary shares

   

ADS equivalent

   

Share capital

   

Other paid in capital

   

Treasury shares

   

Retained earnings

   

Foreign currency translation reserve

   

Total equity

 

As of January 1, 2023

    178,430,242       89,215,121     $ 18     $ 824,832     $ (206,514 )   $ 273,263     $ (3,385 )   $ 888,213  

Net income (loss)

    -       -       -       -       -       29,015       -       29,015  

Other comprehensive income (loss)

    -       -       -       -       -       -       (1,167 )     (1,167 )

Share-based remuneration, net of tax

    -       -       -       -       -       9,724       -       9,724  

Issuance of shares upon exercise of RSUs and options

    2,137,018       1,068,509       -       -       394       -       -       394  

Dividends

    -       -       -       -       -       (107,222 )     -       (107,222 )

Acquisition of treasury shares

    (740,324 )     (370,162 )     -       -       (2,464 )     -       -       (2,464 )

As of June 30, 2023

    179,826,936       89,913,468     $ 18     $ 824,832     $ (208,584 )   $ 204,780     $ (4,553 )   $ 816,493  

 

 

 

Opera Limited

Consolidated Statement of Cash Flows

(In thousands, unaudited)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Cash flows from operating activities:

                               

Profit (loss) before income taxes

  $ (2,094 )   $ 14,684     $ (10,922 )   $ 33,431  

Adjustments to reconcile profit (loss) before income taxes to net cash flow:

                               

Share-based payment expense

    1,520       3,741       3,487       7,174  

Depreciation and amortization

    3,421       3,356       7,011       6,735  

Share of net loss of equity-accounted investees

    -       -       6       -  

Net finance (income) expense

    13,334       (2,150 )     23,498       (6,946 )

Other adjustments

    (265 )     543       (747 )     209  

Changes in working capital:

                               

Change in trade and other receivables

    (6,029 )     (3,955 )     (5,318 )     2,385  

Change in prepayments

    41       (404 )     550       (414 )

Change in inventories

    (113 )     103       (699 )     (349 )

Change in trade and other payables

    (9,164 )     4,381       374       305  

Change in deferred revenue

    (727 )     (2,126 )     776       3,850  

Change in other liabilities

    2,176       744       (3,158 )     (1,584 )

Income taxes (paid) received

    (477 )     (3,397 )     230       (3,552 )

Net cash flow from (used in) operating activities

    1,624       15,517       15,088       41,244  

Cash flows from investing activities:

                               

Purchase of equipment

    (2,477 )     (219 )     (2,593 )     (537 )

Development expenditure

    (2,081 )     (1,048 )     (2,923 )     (2,114 )

Proceeds from sale of shares in former associates

    32,879       -       32,879       -  

Net sale (purchase) of listed equity instruments

    247       -       7,044       23,414  

Interest income received

    31       879       33       1,433  

Net cash flow from (used in) investing activities

    28,600       (389 )     34,441       22,194  

Cash flows from financing activities:

                               

Acquisition of treasury shares

    (6,823 )     -       (9,868 )     (2,464 )

Proceeds from exercise of share options

    -       394       -       394  

Dividends paid

    -       -       -       (12,273 )

Interests on loans and borrowings

    (34 )     (80 )     (103 )     (151 )

Repayment of loans and borrowings

    (96 )     (86 )     (184 )     (158 )

Payment of lease liabilities

    (1,040 )     (1,034 )     (2,036 )     (2,059 )

Net cash flow from (used in) financing activities

    (7,992 )     (806 )     (12,192 )     (16,711 )

Net change in cash and cash equivalents

    22,231       14,323       37,338       46,728  

Cash and cash equivalents at beginning of period

    117,786       84,842       102,876       52,414  

Effect of exchange rate changes on cash and cash equivalents

    (616 )     (1,010 )     (815 )     (987 )

Cash and cash equivalents at end of period

  $ 139,400     $ 98,155     $ 139,400     $ 98,155  

 

 

 

Opera Limited

Supplemental Financial Information

(In thousands, unaudited)

 

Revenue

 

The table below specifies the amounts of the different types of revenue:

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Advertising

  $ 43,085     $ 53,828     $ 81,535     $ 102,347  

Search

    33,734       38,856       65,760       76,644  

Technology licensing and other revenue

    1,016       1,450       2,122       2,194  

Total revenue

  $ 77,834     $ 94,134     $ 149,417     $ 181,185  

 

 

 

Personnel Expenses Including Share-based Remuneration

 

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

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Personnel expenses, excluding share-based remuneration

  $ 17,593     $ 16,744     $ 32,140     $ 32,260  

Share-based remuneration, including related social security costs (1)

    1,477       4,626       3,359       9,163  

Total personnel expenses including share-based remuneration

  $ 19,071     $ 21,370     $ 35,499     $ 41,423  

 

(1) Kunlun, the ultimate parent of Opera, has granted options to employees of Opera as compensation for services these employees provide to Opera. Opera does not have any obligation to settle the awards granted by Kunlun and such grants do not lead to dilution for Opera’s shareholders. In the second quarter of 2023, Opera recognized $2.1 million as share-based remuneration expense related to these awards. For the six months ended June 30, 2023, the expensed amount was $2.7 million. In the comparative periods of 2022, Opera did not recognize any expense related to the Kunlun awards.

 

 

 

Other Operating Expenses

 

The table below specifies the nature of other operating expenses:

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Hosting

  $ 2,288     $ 2,548     $ 4,526     $ 5,032  

Audit, legal and other advisory services

    1,489       1,994       4,491       3,237  

Software license fees

    494       914       964       1,467  

Rent and other office expenses

    1,008       607       1,891       1,226  

Travel

    422       442       572       870  

Other

    776       809       1,490       1,589  

Total other operating expenses

  $ 6,477     $ 7,315     $ 13,933     $ 13,422  

 

 

 

Opera Limited

Reconciliations of Non-IFRS Financial Measures

(In thousands, unaudited)

 

The table below reconciles net income (loss) to adjusted EBITDA:

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Net income (loss)

  $ (5,836 )   $ 13,537     $ (15,271 )   $ 29,015  

Add (deduct):

                               

Income tax expense (benefit)

    3,742       1,148       4,350       4,416  

Net finance expense (income)

    13,334       (2,150 )     23,498       (6,946 )

Share of net loss of equity-accounted investees

    -       -       6       -  

Depreciation and amortization

    3,421       3,356       7,011       6,735  

Share-based remuneration, including related social security costs

    1,477       4,626       3,359       9,163  

Non-recurring expenses

    500       -       1,208       -  

Other operating income

    (70 )     (51 )     (242 )     (180 )

Adjusted EBITDA

  $ 16,569     $ 20,466     $ 23,918     $ 42,204  

 

 

The table below reconciles net cash flow from operating activities to free cash flow from operations:

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2023

   

2022

   

2023

 

Net cash flow from operating activities

  $ 1,624     $ 15,517     $ 15,088     $ 41,244  

Deduct:

                               

Purchase of equipment

    (2,477 )     (219 )     (2,593 )     (537 )

Development expenditure

    (2,081 )     (1,048 )     (2,923 )     (2,114 )

Payment of lease liabilities

    (1,040 )     (1,034 )     (2,036 )     (2,059 )

Free cash flow from operations

  $ (3,974 )   $ 13,216     $ 7,536     $ 36,533