Opera revenue growth disappoints, company considers finding buyer

Opera Software, developer of the Opera browser, has announced the company may go up on the sales block “in response to strategic interest in the company from a number of parties.” Even if the company is not sold, the board is considering other forms of partnership as they commence a “strategic review” with the help of Morgan Stanley International and ABG Sundal Collier during the second half of 2015. It is unclear whether there is a connection, but Opera Software also released second-quarter revenue results which missed forecasts by analysts and they had to cut their full-year expectations.

According to Opera Software, the company missed expectations for revenue growth during the quarter due to weaker than expected results from their mobile advertising business. The company now anticipates 2015 revenues will be $600 – $618 million, down from previously issued guidance of $630 – $650 million. Analysts had projected the company should have $642 million in revenue for 2015, which is an increase from 2014 revenue of $481 million.

This is the second time in the last six months that Opera Software has had to cut their revenue outlook after a similar move this past February.

While announcing financial results, Opera Software also revealed they had acquired Bemobi, a Latin America subscription service for mobile games and apps. The acquisition cost $139.5 million with an initial cash payout of $29.5 million and the rest tied to Bemobi’s future performance. Based on the structure of the deal, the transaction “will be self-funded after closing.”

If Opera were sold, who would you like to see buy them and what should they do with the browser?

source: Reuters

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