Brief: Opera Software warns on 2017 earnings as AdColony unit lags

Otello ASA

24/08/2017 06:08

(Repeats to attach to alerts) 
    Aug 24 (Reuters) - OPERA SOFTWARE ASA  OPERA.OL  
    * Q2 REVENUES $109.9 MILLION (REUTERS POLL $117 MILLION) 
    * Q2 ADJUSTED EBITDA $3.1 MILLION (REUTERS POLL $5.4 
MILLION) 
    * RAMP IN ADCOLONY REVENUE SLOWER THAN EARLIER EXPECTED 
    * OVERALL, WE EXPECT TO BE BELOW THE GUIDANCE WE PUT OUT IN 
THE BEGINNING OF THE YEAR 
    * SPEED OF TRANSFORMATION TO MORE PROGRAMMATIC REVENUE 
STREAMS FOR ADCOLONY MAKES PREDICTABILITY LOWER ON REVENUE AND 
MARGIN, THUS WE DECIDED NOT TO GUIDE FOR THE THE REMAINDER OF 
THE YEAR 
    * ALL 4 COMPANIES EXPECTED TO BE PROFITABLE (ADJUSTED 
EBITDA) IN 2H17 
    * COST BASE REDUCED BY OVER $30M ($25M ADCOLONY & $5M 
SKYFIRE) ENTERING 2H17 VERSUS ENTERING 1H17 
    * FOR ADCOLONY THE FOCUS NOW IS TO GROW MONTH OVER MONTH AND 
WEEK OVER WEEK AS WELL AT GETTING NEW PRODUCTS TO MARKET THAT 
ACCELERATES THE REVENUE GROWTH 
    * EXPECTS ADCOLONY BUSINESS TO GENERATE REVENUE GROWTH IN H2 
2017 VERSUS H1 2017 
    * EXPECTS TO SEE REVENUE GROWTH IN BEMOBI IN 2017 VERSUS 
2016, AS BEMOBI TAKES THE SUCCESS IN BRAZIL TO A GLOBAL ARENA 
    * EXPECTS TO SEE STRONG GROWTH IN SURFEASY IN 2017 VERSUS 
2016 
    * AIMS TO MAKE SKYFIRE PROFITABLE IN 2017SOURCE TEXT FOR 
EIKON:  urn:newsml:reuters.com:*:nObiYF0gwaFURTHER COMPANY COVERAGE:  OPERA.OL  
 
 
 (Reporting By Joachim Dagenborg) 
 ((joachim.dagenborg@thomsonreuters.com;))