Opera attracts takeover interest

News Broadband Global 10 AUG 2015
Opera attracts takeover interest

Web browser developer Opera announced that the company has attracted "strategic interest from a number of parties". As a result, the software company's board started a process to evaluate and consider strategic alternatives for Opera. ABG Sundal Collier and Morgan Stanley International were hired as advisers, and Opera said it expects to complete the review in the second half of this year. Further details on the potential takeover were not disclosed. 

The announcement was made as Opera reported preliminary second-quarter revenues of USD 146 million, up from USD 100.6 million a year ago and at the low end of its guidance of USD 145-155 million. ​Adjusted EBITDA is also expected at the low end of forecasts, at USD 29 million compared to USD 27 million a yea ago. Operating cash flow was up strongly, at USD 31 million versus USD 4.7 million in Q2 2014. ​

Opera lowered its outlook for full-year revenue to USD 600-618 million from an earlier outlook of USD 630-650 million, and cut the EBITDA forecast to USD 108-118 million from USD 130-140 million. This means the company now expects EBITDA flat to lower compared to 2014. For the third quarter, Opera expects revenue of USD 148-153 million and adjusted EBITDA of USD 26-28 million. ​Opera said the lower outlook is due to a weaker-than-​expected performance in ​​the​ mobile advertising market with third-party publishers, offset in part by a stronger outlook for its Consumer (O&O and Tech Licensing) business area. 

The company said it experienced softness in the non-Instant play video advertising part of its business during the latter part of Q2, which also carried into July, both in the US and EMEA region. As a result, Opera now expects total revenue from ​the​ ​Mobile Advertising – 3rd Party Publisher area​ of USD 392-405 million versus earlier expectations of USD 445-455 million.​ The outlook for Consumer revenues is USD 208-213 million in 2015, including USD 193-198 million of organic revenue (versus earlier expectations of USD 185-195 million) and USD 15 million of revenue from Bemobi. ​

Opera will provide more details on the second quarter and 2015 outlook at a presentation on 12 August.

Categories:

Internet,  Mobile

Companies:

Opera

Regions:

Global

Tags:

Financial figures, IT - applications, Advertising services, M&A buyouts & divestments

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