EX-99.1 2 ex_164922.htm EXHIBIT 99.1 ex_164922.htm

Exhibit 99.1

 

Opera Limited announces third quarter 2019 financial results

 

 

Revenue of $93.7 million, growth accelerating to 119% year-over-year; exceeding the top end of Opera’s guidance range

 

Monthly active users averaging 232 million for smartphone (up 18% YoY) and 68 million for PC (up 16% YoY)

 

Opera News users grew 39% to over 169 million monthly active users year-over-year; dedicated news app increased to 41 million monthly active users

 

Opera’s microlending business more than tripled revenue versus the second quarter; driven by 5M loans totaling more than $250 million in total loan value

 

OList, our recently launched classifieds offering, reached 1 million listings within three months of launch

 

Net income of $28.1 million, supported by a non-cash OPay valuation gain

 

Adjusted EBITDA of $12.6 million, representing significant margin expansion versus the prior quarter

 

Raising 2019 revenue guidance range to $300 to $310 million, representing 77% growth at the midpoint versus 2018

 

Oslo, Norway, November 14, 2019 – Opera Limited (NASDAQ: OPRA), one of the world’s major browser developers and a leading internet consumer brand, today announced its unaudited consolidated financial results for the quarter ended September 30, 2019.

 

Third quarter 2019 financial highlights

 

   

Three Months Ended September 30,

   

Year-over-

   

Nine Months Ended September 30,

   

Year-over-

 

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

 

2018

   

2019

   

year %

change  

   

2018

   

2019

   

year %

change  

 

Revenue

    42,795       93,678       118.9 %     122,069       205,245       68.1 %
                                                 

Net income (loss)

    9,717       28,120       189.4 %     23,747       35,923       51.3 %

Margin

    22.7 %     30.0 %             19.5 %     17.5 %        
                                                 

Adjusted EBITDA (1)

    16,495       12,647       -23.3 %     48,283       25,305       -47.6 %

Margin

    38.5 %     13.5 %             39.6 %     12.3 %        
                                                 

Adjusted net income (1)

    12,494       30,578       144.7 %     33,151       43,188       30.3 %

Margin

    29.2 %     32.6 %             27.2 %     21.0 %        
                                                 

Diluted net income per ADS, US$

    0.09       0.25       176.6 %     0.23       0.32       36.6 %
                                                 

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

    0.11       0.27       146.1 %     0.33       0.38       16.4 %

 

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

 

 

Frode Jacobsen, Opera’s CFO, said, “We are pleased with our third quarter results delivering accelerated revenue growth year-over-year and positive momentum throughout the business. We are successfully leveraging our well-known brand and large user base of more than 350 million monthly active users to drive growth in new opportunities beyond the browser, including news and content, fintech and classifieds. Our new initiatives, strategic investments and the continued growth of our browser, led to an accelerating growth trajectory with 119% year-over-year revenue growth.

 

“Our third quarter revenue growth was driven by strong results in both advertising and search revenues and more than a tripling of microlending revenue versus the second quarter, driven by rapid scaling in India and continued success in Kenya. Adjusted EBITDA margins expanded meaningfully versus the prior quarter, while we continued to invest aggressively in existing and future growth initiatives.”

 

 

 

 

Third quarter 2019 user base and product highlights

(All comparisons are relative to the third quarter of 2018 unless otherwise stated)

 

 

Opera News average Monthly Active Users (“MAUs”) grew 39% to 169 million

 

The Opera News app, launched in January 2018, reached 41 million average MAUs, up 136% on year-over-year basis

 

Total smartphone average MAUs grew 18% to 232 million

 

PC average MAUs grew 16% to 68 million

 

Provided 4.9 million microloans in the quarter with a total value of $250 million, up from 1.8 million microloans and $70 million value in the second quarter

 

Lin Song, Opera’s COO, said, “We are pleased with our strong third quarter results across all of our key metrics. We maintain a robust user growth trajectory while utilizing our scale to launch new products and further expand our market opportunity.

 

“Opera News continues to scale, with MAUs of our news app increasing 136% year-over-year to 41 million in the third quarter. We remain focused on driving user growth and increasing engagement through improved product quality and adding hyperlocal content on the platform. This includes the launch of Opera News Hub, a platform which allows content creators to publish and monetize through Opera News, which has already signed on 500 key opinion leaders. We continue to make progress monetizing our dedicated news app, with revenue up 44% versus the prior quarter.

 

“Opera Ads, our direct selling platform is evolving and expanding its capabilities. We are reaching an increasing number of both large businesses and small to medium sized enterprises which led to an increase in advertising revenue. Additionally, we launched OLeads, a product aimed at helping the tens of millions of small and medium enterprises in Nigeria grow and market their businesses online.

 

“Olist, our classified offering in Nigeria is progressing well. Listings have more than doubled to over 1 million from three months ago. We are focusing on growing listings and driving consumer awareness. We believe the potential in this area is very interesting, both in terms of advertising, but also from taking part in the underlying transactions through fee based models.

 

“On the browser side, our focus on product differentiation has led to continued growth with PC users up 16% year-over-year as we remain focused on privacy and security functionality, and supported by the continued success of Opera GX, our web browser tailored for gamers. Our smartphone user base also continued to grow during the quarter, as we launched offline file sharing in our Opera Mini browser that enables users to share content without using their mobile data or being limited by a slow network connection. The recent launch of our new tracker blocker is shown to speed up mobile browser speed by almost 20%.”

 

 

 

 

Business outlook

 

Mr. Frode Jacobsen, Opera’s CFO, said, “In light of the success we achieved during the third quarter of 2019, we are again raising our full-year revenue expectations. We now expect 77% revenue growth at the midpoint of our 2019 guidance. This view includes further growth in our microlending business and continued scaling of our advertising business. We expect our newest initiatives, including OList and additional fintech efforts, to be more of a factor in 2020. Further, we are increasing the lower end of our 2019 Adjusted EBITDA guidance. This reflects further margin expansion in the fourth quarter, while continuing to make aggressive investments in both existing and new initiatives aimed at driving strong multi-year growth.”

 

As a result, Opera expects fourth quarter and full year 2019 revenue and adjusted EBITDA to be in the following ranges:

 

Fourth Quarter:

 

Revenue of $95 - $105 million, or 89 - 109% growth versus the fourth quarter of 2018, driven by fintech revenue and to a lesser extent growth in advertising and search revenue. This growth will be offset by an expected significant decline in technology licensing revenue

 

Adjusted EBITDA of $15 - $19 million, representing margin expansion versus the third quarter

 

Full Year:

 

Revenue of $300 - $310 million, or 74 - 80% growth year-over-year, an increase from our previous guidance of $270 - $290 million

 

Adjusted EBITDA of $41 - $45 million

 

Third quarter 2019 consolidated financial results

 

All comparisons in this section are relative to the third quarter of 2018 unless otherwise stated.

 

Revenue increased 119% to $93.7 million.

 

Search revenue increased 13% to $21.5 million, primarily due to smartphone and PC browser growth.

 

Advertising revenue increased 17% to $18.3 million, due to an increase in both smartphone and PC users and continued monetization improvements.

 

Fintech revenue was $39.9 million. This revenue tripled versus the prior quarter due to rapidly scaling India and continued growth in Kenya.

 

Retail revenue was $6.0 million versus $2.9 million in the third quarter of 2018.

 

Technology licensing and other revenue was $7.9 million. This was higher than expected due to non-recurring incremental low margin revenue relating to investee support.

 

 

 

 

Operating expenses increased 181% to $87.0 million.

 

Cost of revenue was $15.0 million, compared to $10.1 million in the second quarter of 2019. Within the total, $6.0 million related to retail revenue, $8.8 million related to microlending and $0.2 million related to the browser and news business area.

 

Personnel expenses including share-based remuneration were $19.5 million, a 108% increase. This expense consists of cash-based compensation expense of $18.0 million, and $1.5 million of share-based remuneration expense. The increase included approximately $4.0 million of short-term elevated compensation cost relating to investee support, and some staff increases mainly related to Opera News, Opera Ads, microlending and other growth initiatives.

 

Marketing and distribution expenses were $20.0 million, an increase of 160% following our previously announced efforts to further invest in accelerating our growth in 2019.

 

Credit loss expense was $19.6 million, including $20.0 million related to microlending which was partially offset by a $0.4 million reduction in credit loss provision within the browser and news segment.

 

Depreciation and amortization expenses were $4.5 million, a 48% increase. The increase is largely the result of the adoption of IFRS 16 on January 1, 2019.

 

Other operating expenses were $8.3 million, a 19% increase.

 

Operating profit was $6.7 million, representing an operating margin of 7%, compared to $11.8 million and a 27% margin in the year-ago quarter. The decline was largely due to the increased investment in marketing and distribution activities and increased headcount associated with our growth initiatives.

 

Share of net income of associates and joint ventures amounted to $23.3 million, including a non-cash gain from the increased OPay valuation in connection with the company’s recent funding round.

 

Income tax expense was $1.7 million, compared to an expense of $1.0 million in the year-ago quarter.

 

Net income was $28.1 million, compared to $9.7 million in the third quarter of 2018.

 

Net income per ADS was $0.25 in the quarter, and $0.25 on a diluted basis.

 

Adjusted net income per ADS was $0.28 in the quarter, and $0.27 on a diluted basis. Each ADS represents two shares in Opera Limited. In the quarter, the average number of shares outstanding was 221.6 million, corresponding to 110.8 million ADSs. Note that the third quarter only includes 1.0 million impact of the 7.5 million new ADSs issued as part of the company’s follow-on offering. An additional 1.1 million new ADSs were issued in October related to the underwriters’ execution of the over-allotment option.

 

Adjusted EBITDA was $12.6 million, representing a 13% adjusted EBITDA margin, compared to $16.5 million in third quarter 2018. Adjusted EBITDA excludes share-based remuneration.

 

Adjusted Net Income was $30.6 million in the quarter, representing a 33% adjusted net margin compared to $12.5 million in third quarter 2018. Adjusted net income excludes share-based remuneration and amortization of intangible assets related to acquisitions (all of which relates to the Opera privatization in 2016). Adjusted net income further includes partially offsetting reversals of the tax impacts of the foregoing adjustments.

 

 

 

 

Other highlights included a follow-on public offering of 8.6 million American Depositary Shares (ADS), raising a total of $82.6 million net of underwriting discounts and commissions. The initial offering of 7.5 ADSs was completed on September 24th and the underwriters’ execution of the over-allotment option of 1.1 million ADSs was completed on October 16th.

 

 

Conference call

 

Opera’s management team will host a conference call from Lagos, Nigeria at 8:00 AM U.S. Eastern Time (2:00 PM Central European Time, 9:00 PM Beijing/Hong Kong time) on Thursday, November 14, 2019.

 

The dial-in details for the live conference call are:

United States: +1 (877) 506-7703

China: +86 400 682 8609

Hong Kong: +852 5819 4851

Norway: +47 239 64173

United Kingdom: +44 (0)203 107 0289

International: +1 (786) 815-8450

Confirmation Code: 7235635

 

 

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

 

 

 

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, restructuring costs, depreciation and amortization, share-based remuneration and expensed costs related to our recent initial public offering, less other income.

 

We define adjusted net income as net income excluding share-based remuneration, amortization of acquired intangible assets, and expensed costs related to our recent initial public offering.

 

We believe that adjusted EBITDA and adjusted net income provides 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’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,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Opera and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its goals and strategies; its expected development and launch, and market acceptance, of its products and services; its expectations regarding demand for and market acceptance of our brand, platforms and services; our expectations regarding growth in our user base and level of engagement; its ability to attract, retain and monetize users; its ability to continue to develop new technologies and/or upgrade our existing technologies and quarterly variations in its operating results caused by factors beyond its control and global macroeconomic conditions and its potential impact in the markets it has businesses. All information provided in this press release is as of the date hereof, and Opera 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 Opera 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 Opera’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

 

 

About Opera

 

Opera is a leading global internet brand with an engaged and growing base of over 350 million average monthly active users. Building on over 20 years of innovation, starting with our browser products, we are increasingly leveraging our brand as well as our massive and highly active user base in order to expand our offerings and our business. Today, we offer users across Europe, Africa and Asia a range of products and services that include our PC and mobile browsers as well as our AI-powered news reader Opera News and our app-based microfinance solutions.

 

Investor Relations Contact:

 

Derrick Nueman

investor-relations@opera.com or (408) 596-3055

 

For media enquiries, please contact: press-team@opera.com

 

 

 

 

OPERA LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 

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

 

2018

   

2019

   

2018

   

2019

 

Revenue

    42,795       93,678       122,069       205,245  
                                 

Operating expenses

                               

Cost of revenue

    (3,663 )     (15,023 )     (5,741 )     (32,906 )

Personnel expenses including share-based remuneration

    (9,378 )     (19,495 )     (29,844 )     (46,180 )

Marketing and distribution expenses

    (7,709 )     (20,029 )     (22,885 )     (55,799 )

Credit loss expense

    (162 )     (19,641 )     167       (27,274 )

Depreciation and amortization

    (3,051 )     (4,511 )     (9,817 )     (12,934 )

Other expenses

    (6,992 )     (8,326 )     (21,862 )     (22,236 )

Total operating expenses

    (30,954 )     (87,026 )     (89,982 )     (197,329 )
                                 

Operating profit (loss)

    11,841       6,652       32,086       7,917  
                                 

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

    (1,757 )     23,295       (3,381 )     26,252  
                                 

Net finance income (expense)

                               

Finance income

    629       611       827       3,970  

Finance expense

    (54 )     (222 )     (131 )     (548 )

Net foreign exchange gain (loss)

    28       (539 )     140       (693 )

Net finance income (expense)

    603       (151 )     836       2,728  
                                 

Net income (loss) before income taxes

    10,687       29,797       29,541       36,897  

Income tax (expense) benefit

    (970 )     (1,677 )     (5,794 )     (974 )

Net income (loss)

    9,717       28,120       23,747       35,923  
                                 

Net income (loss) attributable to:

                               

Equity holders of the parent

    9,717       28,120       23,747       35,923  

Non-controlling interests

    -       -       -       -  

Total net income (loss) attributed

    9,717       28,120       23,747       35,923  
                                 

Weighted average number of ordinary shares outstanding

                               

Basic, millions(1)

    209.99       221.55       196.83       220.31  

Diluted, millions(2)

    216.82       225.89       202.92       224.83  
                                 

Net income (loss) per ordinary share

                               

Basic, US$

    0.05       0.13       0.12       0.16  

Diluted, US$

    0.05       0.12       0.12       0.16  
                                 

Net income (loss) per ADS

                               

Basic, US$

    0.09       0.25       0.24       0.33  

Diluted, US$

    0.09       0.25       0.23       0.32  

 

(1) Assuming 200 million shares in Opera Limited were outstanding for all periods presented prior to the Initial Public Offering (IPO), less 9.75 million shares that were surrendered by two shareholders upon completion of the IPO. As of September 30, 2019, the total number of shares outstanding for Opera Limited was 235,576,326, equivalent to 117,788,163 ADSs.

 

(2) Includes the net dilutive impact of employee equity awards, all of which are dilutive.

 

 

 

 

OPERA LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 

[US$ thousands]

 

2018

   

2019

   

2018

   

2019

 

Net income (loss)

    9,717       28,120       23,747       35,923  
                                 

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

    (177 )     (1,982 )     (1,273 )     (2,092 )

Reclassification of exchange differences on loss of control

    -       -       (138 )     7  

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

    -       -       -       (41 )

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

    (177 )     (1,982 )     (1,411 )     (2,126 )

Total comprehensive income (loss)

    9,541       26,139       22,336       33,797  
                                 

Total comprehensive income (loss) attributable to:

                               

Equity holders of the parent

    9,541       26,139       22,336       33,797  

Non-controlling interests

    -       -       -       -  

Total comprehensive income (loss) attributed

    9,541       26,139       22,336       33,797  

 

 

 

 

OPERA LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

   

As of December 31,

   

As of September 30,

 

[US$ thousands]

 

2018

   

2019

 

ASSETS

               

Non-current assets

               

Furniture, fixtures and equipment

    12,162       27,689  

Intangible assets

    115,444       112,355  

Goodwill

    421,578       421,578  

Investments in associates and joint ventures

    35,060       67,560  

Non-current financial assets

    2,025       2,689  

Deferred tax assets

    944       -  

Total non-current assets

    587,213       631,870  
                 

Current assets

               

Trade receivables

    37,468       47,983  

Loans to customers

    3,092       55,508  

Other receivables

    4,031       3,931  

Prepayments

    14,372       26,857  

Inventories

    -       1,932  

Other current financial assets

    89       -  

Marketable securities

    1,165       45,253  

Cash and cash equivalents

    177,873       170,697  

Total cash, cash equivalents, and marketable securities

    179,038       215,950  

Total current assets

    238,090       352,161  

TOTAL ASSETS

    825,303       984,031  
                 
                 

EQUITY AND LIABILITIES

               

Equity

               

Share capital

    22       24  

Other paid in capital

    738,690       803,896  

Retained earnings

    36,432       76,044  

Foreign currency translation reserve

    316       (1,810 )

Equity attributed to equity holders of the parent

    775,460       878,154  

Non-controlling interests

    -       -  

Total equity

    775,460       878,154  
                 

Non-current liabilities

               

Non-current lease liabilities and other loans

    2,271       9,750  

Deferred tax liabilities

    13,358       13,654  

Other non-current liabilities

    212       130  

Total non-current liabilities

    15,841       23,534  
                 

Current liabilities

               

Trade and other payables

    17,957       41,542  

Current lease liabilities and other loans

    2,490       26,471  

Income tax payable

    1,920       1,700  

Deferred revenue

    1,932       1,159  

Other current liabilities

    9,701       11,471  

Total current liabilities

    34,002       82,343  
                 

Total liabilities

    49,843       105,877  

TOTAL EQUITY AND LIABILITIES

    825,303       984,031  

 

 

 

 

 

OPERA LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

[US$ thousands]

 

Share capital (1)

   

Other paid in

capital (1)

   

Retained

earnings

   

Foreign

currency

translation

reserve

   

Total equity

 

As of December 31, 2017, as previously reported

    19       576,512       5,366       1,605       583,503  

Impact of new accounting standards

    -       -       (629 )     -       (629 )

As of January 1, 2018, restated

    19       576,512       4,737       1,605       582,874  

Net income (loss)

    -       -       23,747       -       23,747  

Other comprehensive income (loss)

    -       -       -       (1,411 )     (1,411 )

Total comprehensive income (loss)

    -       -       23,747       (1,411 )     22,336  

Contribution of equity, net of transaction costs

    3       167,153       -       -       167,156  

Share-based remuneration expense

    -       -       4,638       -       4,638  

As of September 30, 2018

    22       743,665       33,122       194       777,003  

 

 

[US$ thousands]

 

Share capital (1)

   

Other paid in

capital (1)

   

Retained

earnings

   

Foreign

currency

translation

reserve

   

Total equity

 

As of December 31, 2018

    22       738,690       36,432       316       775,460  

Impact of implementing IFRS 16 Leases

    -       -       64       -       64  

As of January 1, 2019, restated

    22       738,690       36,496       316       775,524  

Net income (loss)

    -       -       35,923       -       35,923  

Other comprehensive income (loss)

    -       -       -       (2,126 )     (2,126 )

Total comprehensive income (loss)

    -       -       35,923       (2,126 )     33,797  

Contribution of equity, net of transaction costs

    2       70,986       -       -       70,988  

Acquisition of treasury shares

    -       (5,780 )     -       -       (5,780 )

Share-based remuneration expense

    -       -       3,624       -       3,624  

As of September 30, 2019

    24       803,896       76,044       (1,810 )     878,154  

 

(1) The amounts of share capital and other paid in capital have been amended by reclassifying amounts between the two equity components.

 

 

 

 

OPERA LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

   

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 

[US$ thousands]

 

2018

   

2019

   

2018

   

2019

 
                                 

Net cash flow from (used in) operating activities

    6,820       (17,539 )     21,713       (24,460 )

Net cash flow from (used in) investing activities

    (2,426 )     (35,311 )     (3,713 )     (62,794 )

Net cash flow from (used in) financing activities

    169,463       90,206       167,117       81,041  
                                 

Net change in cash and cash equivalents

    173,857       37,356       185,118       (6,213 )
                                 

Cash and cash equivalents at beginning of period

    43,993       134,155       33,207       177,873  

Net foreign exchange difference

    (209 )     (813 )     (682 )     (962 )

Cash and cash equivalents at end of period

    217,642       170,697       217,642       170,697  

 

 

 

 

Financial details by business area

 

The tables below specify the contribution by each business area:

 

[US$ thousands]

 

Three months ended September 30, 2018

 

Business area

 

Browser and News

   

Fintech

   

Retail

   

Other

   

Total

 

Revenue categories

                                       

Search

    19,130       -       -       -       19,130  

Advertising

    15,679       -       -       -       15,679  

Origination fees and interest

    -       -       -       -       -  

Airtime and handsets

    -       -       2,871       -       2,871  

Technology licensing and other revenue

    -       -       -       5,116       5,116  

Total revenue

    34,809       -       2,871       5,116       42,795  
                                         

Cost of revenue

    (672 )     -       (2,991 )     -       (3,663 )

Marketing and distribution expenses

    (7,709 )     -       -       -       (7,709 )

Credit loss expense

    (162 )     -       -       -       (162 )

Direct expenses

    (8,543 )     -       (2,991 )     -       (11,534 )
                                         

Contribution by business area

    26,266       -       (120 )     5,116       31,262  

 

 

[US$ thousands]

 

Three months ended September 30, 2019

 

Business area

 

Browser and News

   

Fintech

   

Retail

   

Other

   

Total

 

Revenue categories

                                       

Search

    21,527       -       -       -       21,527  

Advertising

    18,349       -       -       -       18,349  

Origination fees and interest

    -       39,858       -       -       39,858  

Airtime and handsets

    -       -       6,006       -       6,006  

Technology licensing and other revenue

    -       -       -       7,937       7,937  

Total revenue

    39,876       39,858       6,006       7,937       93,678  
                                         

Cost of revenue

    (207 )     (8,797 )     (6,019 )     -       (15,023 )

Marketing and distribution expenses

    (16,831 )     (3,198 )     -       -       (20,029 )

Credit loss expense

    345       (19,986 )     -       -       (19,641 )

Direct expenses

    (16,693 )     (31,981 )     (6,019 )     -       (54,693 )
                                         

Contribution by business area

    23,183       7,877       (13 )     7,937       38,985  

 

 

[US$ thousands]

 

Nine months ended September 30, 2018

 

Business area

 

Browser and News

   

Fintech

   

Retail

   

Other

   

Total

 

Revenue categories

                                       

Search

    59,115       -       -       -       59,115  

Advertising

    42,312       -       -       -       42,312  

Origination fees and interest

    -       -       -       -       -  

Airtime and handsets

    -       -       2,871       -       2,871  

Technology licensing and other revenue

    -       -       -       17,771       17,771  

Total revenue

    101,427       -       2,871       17,771       122,069  
                                         

Cost of revenue

    (2,750 )     -       (2,991 )     -       (5,741 )

Marketing and distribution expenses

    (22,885 )     -       -       -       (22,885 )

Credit loss expense

    167       -       -       -       167  

Direct expenses

    (25,468 )     -       (2,991 )     -       (28,459 )
                                         

Contribution by business area

    75,959       -       (120 )     17,771       93,610  

 

 

 

 

[US$ thousands]

 

Nine months ended September 30, 2019

 

Business area

 

Browser and News

   

Fintech

   

Retail

   

Other

   

Total

 

Revenue categories

                                       

Search

    63,514       -       -       -       63,514  

Advertising

    48,649       -       -       -       48,649  

Origination fees and interest

    -       56,466       -       -       56,466  

Airtime and handsets

    -       -       20,471       -       20,471  

Technology licensing and other revenue

    -       -       -       16,145       16,145  

Total revenue

    112,163       56,466       20,471       16,145       205,245  
                                         

Cost of revenue

    (1,420 )     (11,058 )     (20,428 )     -       (32,906 )

Marketing and distribution expenses

    (51,730 )     (4,069 )             -       (55,799 )

Credit loss expense

    (200 )     (27,074 )     -       -       (27,274 )

Direct expenses

    (53,350 )     (42,201 )     (20,428 )     -       (115,979 )
                                         

Contribution by business area

    58,813       14,265       43       16,145       89,266  

 

 

Personnel expenses including share-based remuneration
 

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

 

[US$ thousands]

 

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 

Personnel expenses including share-based remuneration

 

2018

   

2019

   

2018

   

2019

 

Personnel expenses excluding share-based remuneration

    8,617       18,012       26,416       41,726  

Share-based remuneration, including related social security costs

    761       1,483       3,427       4,454  

Total

    9,378       19,495       29,844       46,180  

 

 

 

 

Other expenses

 

The table below specifies the nature of other expenses:

 

[US$ thousands]

 

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 

Other expenses

 

2018

   

2019

   

2018

   

2019

 

Hosting

    2,470       1,879       7,649       5,278  

Audit, legal and other advisory services

    1,865       2,122       6,743       6,093  

Software license fees

    356       494       1,248       1,789  

Rent and other office expense

    1,032       1,553       3,368       3,917  

Travel

    540       1,017       1,570       2,401  

Other

    729       1,262       1,284       2,757  

Total

    6,992       8,326       21,862       22,236  

 

 

 

 

Non-IFRS financial measures 

 

   

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 

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

 

2018

   

2019

   

2018

   

2019

 

Reconciliation of net income (loss) to adjusted EBITDA

                               

Net income (loss)

    9,717       28,120       23,747       35,923  

Add: Income tax expense (benefit)

    970       1,677       5,794       974  

Add: Net finance expense (income)

    (603 )     151       (836 )     (2,728 )

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

    1,757       (23,295 )     3,381       (26,252 )

Add: Depreciation and amortization

    3,051       4,511       9,817       12,934  

Add: Share-based remuneration

    761       1,483       3,427       4,454  

Add: Expensed IPO related costs

    843       -       2,952       -  

Adjusted EBITDA

    16,495       12,647       48,283       25,305  
                                 

Reconciliation of net income (loss) to adjusted net income

                               

Net Income (loss)

    9,717       28,120       23,747       35,923  

Add: Share-based remuneration

    761       1,483       3,427       4,454  

Add: Amortization of acquired intangible assets

    1,280       1,280       3,840       3,840  

Add: Expensed IPO related costs

    843       -       2,952       -  

Income tax adjustment (1)

    (106 )     (305 )     (816 )     (1,029 )

Adjusted net income

    12,494       30,578       33,151       43,188  
                                 

Weighted average number of ordinary shares outstanding

                               

Basic, millions

    209.99       221.55       196.83       220.31  

Diluted, millions

    216.82       225.89       202.92       224.83  
                                 

Adjusted net income (loss) per ordinary share

                               

Basic, US$

    0.06       0.14       0.17       0.20  

Diluted, US$

    0.06       0.14       0.16       0.19  
                                 

Adjusted net income (loss) per ADS

                               

Basic, US$

    0.11       0.28       0.34       0.39  

Diluted, US$

    0.11       0.27       0.33       0.38  

 

(1) Reversal of tax benefit related to the social security cost component of share-based remuneration, deferred taxes on the  amortization of acquired intangible assets, and expensed IPO-related costs.