Opera Reports Record Third Quarter 2022 Results

Revenue and adjusted EBITDA both exceeded prior guidance ranges, with gaming browser GX key driver of high ARPU users in the Americas and Europe

Q3 revenue grew 28% year-over-year, with adjusted EBITDA margin reaching 25% in the quarter

Company announced a major repurchase of 23.4 million ADS equivalents that closed in October, in addition to 0.9 million ADSs repurchased in the market during Q3

Company raises 2022 guidance, expecting 29% revenue growth at a 19% adjusted EBITDA margin at the midpoint

OSLO, Norway , Oct. 27, 2022 /PRNewswire/ -- 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 third quarter ended September 30, 2022 .

Third Quarter 2022 Financial Highlights

	Three Months Ended September 30,						Year- over-year			Nine Months Ended September 30,						Year- over-year
[US$ thousands, except for margins and per ADS amounts]	2021			2022			% Change			2021			2022			% Change
Revenue		66,620			85,347			28.1	%		178,365			234,765			31.6	%

Net income (loss)		23,500			9,384			(60.1)	%		68,426			(5,887)			n.m.
Margin		35.3	%		11.0	%					38.4	%		(2.5)	%

Adjusted EBITDA (1)		8,197			21,382			160.9	%		11,759			45,300			285.2	%
Margin		12.3	%		25.1	%					6.6	%		19.3	%

Adjusted net income (1)		29,816			11,759			(60.6)	%		83,567			2,033			(97.6)	%
Margin		44.8	%		13.8	%					46.9	%		0.9	%

Diluted net income (loss) per ADS, US$		0.20			0.08			(59.3)	%		0.59			(0.05)			n.m.

Diluted adjusted net income per ADS, US$ (1)		0.26			0.10			(59.8)	%		0.72			0.02			(97.5)	%

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

"Once again, Opera was able to deliver record revenue at a profitability level well ahead of our expectations, by remaining focused on operational excellence despite continuing macro headwinds," said Co-CEO Song Lin .

"While the macroeconomic outlook remains highly uncertain, we are pleased to yet again observe that our strategic choice to focus product innovation around high-ARPU users in the US and in Europe continues to drive strong underlying performance. The substantial revenue growth and profitability expansion we report today exceed our earlier increased guidance and demonstrate the growth potential of our core strategy even in turbulent times. Finally, I would like to add how excited I am to join the Board of Directors and continue to shape the direction of our company," continued Mr. Song.

Third Quarter and Recent Business Highlights

Core search and advertising revenue grew 29% year-over-year, driven by the ongoing ARPU trend of our browser and news user base as well as our Opera Ads platform.
Opera's average monthly active user base was 321 million MAUs in the quarter, with underlying growth continuing to be strongest in the Americas. As our focus on monetizable users in emerging markets mature, we are starting to see signs of user base stabilization in these regions at significantly higher ARPU levels.
In the third quarter, each user on average generated a record $1.06 of revenue on an annualized basis, exceeding the one-dollar milestone following 41% growth versus the third quarter of 2021.
The Opera GX gaming browser had over 18 million monthly active users across PC and mobile in the third quarter, with the underlying growth being partially offset by seasonality.
Towards the end of the quarter, Opera announced that it had reached an agreement with its pre-IPO shareholder, 360, to acquire its 23.4 million ADS equivalents or 20.6% stake in Opera for $128.6 million , financed by our strong balance sheet. Subsequent to the end of the quarter the transaction closed, and 360 is no longer a shareholder in Opera.
During the quarter, the company conducted open market repurchases of 0.9 million ADSs at an average price of $4.84 , for a total spend of $4.4 million , leaving $35 million or nearly 70% of our existing buyback authorization remaining. Net of the transaction with 360 and repurchases to date in Q4, the total number of ADS equivalents outstanding is now 89,693,168.
At the end of the third quarter our cash and marketable securities were $201 million . Combined with present value receivables of $168 million from the sale of Nanobank and Star X, this adds to a total of $369 million , or $241 million net of the subsequent payment for 360's stake. We also continue to hold our 6.44% equity stake in OPay as an asset held for sale.

Business Outlook

"Both our search and advertising revenues supported our continued strong growth trajectory driven by our focus on high value users and broadened monetization in all regions. Revenue outperformance combined with lower-than-expected marketing expenses resulted in higher-than-expected EBITDA," said CFO Frode Jacobsen . "On top of our strong operating performance, we remain committed to returning capital to shareholders. In total Opera has bought back more than 28% of total ADS equivalents outstanding after our 2018 IPO and 2019 follow-on offering and we remain focused on closing the gap between the current share price and the intrinsic value we see in our company."

For the full year of 2022, Opera expects revenue of $323 million to $326 million, representing 29% year-over-year growth at the midpoint and up from our prior guidance of $313 million to $319 million . We guide adjusted EBITDA to be between $62 million and $64 million , or a 19% margin at the midpoint, and up from our prior guidance of $53 million to $60 million .

For the fourth quarter of 2022, Opera expects revenue of $88 million to $91 million, representing 23% year-over-year growth at the midpoint. Adjusted EBITDA is expected to be between $17 million and $19 million , representing a 20% margin at the midpoint.

Third Quarter 2022 Consolidated Financial Results

All comparisons in this section are relative to the third quarter of 2021 unless otherwise stated.

Revenue increased 28% to $85 .3 million.

Search revenue increased by 15% to $35.4 million , driven in by the growth of our PC footprint in western markets, particularly in North America .
Advertising revenue increased by 41% to $49.1 million , benefiting from the audience extension supported by our Opera Ads platform in addition to the growth in our western PC footprint.
Technology licensing and other revenue was $0.8 million .

Operating expenses increased by 3% to $69.3 million .

Combined technology and platform fees, content cost and cost of inventory sold was $15.7 million , or 18% of revenue.
Personnel expenses, including share-based remuneration, were $18.0 million , a 15% decrease. This expense consists of cash-based compensation expense of $16.1 million , a 7% decrease year-over-year mainly due to strengthening of the US dollar, and share-based remuneration expense of $1.8 million .
Marketing and distribution expenses were $26.0 million , a decrease of 20% year-over-year, or a 3% sequential increase versus the prior quarter.
Depreciation and amortization expenses were $3.4 million , a 30% decrease year-over-year but stable versus the prior quarter.
All other operating expenses were $6.1 million , a 10% increase year-over-year but a 14% decrease versus the prior quarter.

Operating profit was $16.2 million compared to an operating loss of $0.6 million in the third quarter of 2021.

Net finance expense was $2.2 million , of which the present value impact of the extended payment period of our Nanobank sale was the most significant driver.

Income tax expense was $5.2 million in the quarter, elevated due to foreign currency impacts on net deferred tax liabilities.

Net income was $9.4 million . This compared to net income of $23.5 million in the third quarter of 2021. Net income in the third quarter of 2021 was positively impacted by the $28.0 million gain from recognizing our ordinary shares in OPay at fair value.

Net income per ADS was $0.08 in the quarter. Each ADS represents two shares in Opera Limited. In the quarter, the weighted average number of shares outstanding was 227.4 million, corresponding to 113.7 million ADSs.

Adjusted EBITDA was $21.4 million , representing a 25% margin, compared to adjusted EBITDA of $8.2 million in the third quarter of 2021.

Adjusted net income was $11.8 million in the quarter, compared to adjusted net income of $29.8 million in the third quarter of 2021.

Adjusted net income per ADS was $0.10 in the quarter.

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

Conference Call

Opera's management will host a conference call to discuss the third quarter 2022 financial results on Thursday, October 27th at 8:00 am Eastern Time (EDT). Listeners may access the call by dialing the following numbers:

United States : +1 877-830-2596
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: +1 785-424-1744

Confirmation Code: OPRAQ322

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 @InvestorOpera.

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 (loss), 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 equity-accounted investees, fair value loss (gain) from investments, depreciation and amortization, impairment of non-financial assets, impairment of equity-accounted investees, share-based remuneration, credit loss expense related to divested joint venture, non-recurring expenses, less other operating income and (profit) loss from discontinued operations.

We define adjusted net income (loss) as net income (loss) excluding share-based remuneration, amortization cost related to acquired intangible assets, amortization of Nanobank intangible assets, credit loss expense related to divested joint venture and other non-recurring expenses, and (profit) loss from discontinued operations, adjusted for the associated tax benefit related to such items.

We believe that adjusted EBITDA and adjusted net income (loss) provide 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," "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 the COVID-19 pandemic, 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 global web innovator. Opera's browsers, gaming, Web3 and news products are the trusted choice of hundreds of millions of users worldwide. Opera is headquartered in Oslo, Norway and listed on the Nasdaq stock market (OPRA). Download the Opera browser from www.opera.com .

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

Unaudited Consolidated Statement of Operations

	Three Months Ended September 30,				Nine Months Ended September 30,
[US$ thousands, except per ADS and share amounts]	2021		2022		2021		2022
Revenue		66,620		85,347		178,365		234,765
Other operating income		64		80		218		322
Operating expenses:
Technology and platform fees		(1,191)		(1,037)		(3,175)		(3,321)
Content cost		(926)		(841)		(2,512)		(2,944)
Cost of inventory sold		(1,220)		(13,868)		(2,464)		(29,372)
Personnel expenses including share-based remuneration		(21,226)		(17,994)		(56,782)		(53,493)
Marketing and distribution expenses		(32,317)		(26,005)		(90,975)		(85,429)
Credit loss expense		(79)		(299)		(385)		(410)
Depreciation and amortization		(4,928)		(3,438)		(15,045)		(10,449)
Non-recurring expenses		-		-		-		(1,208)
Other operating expenses		(5,417)		(5,770)		(17,236)		(19,703)
Total operating expenses		(67,303)		(69,252)		(188,574)		(206,329)
Operating profit (loss)		(618)		16,175		(9,991)		28,758
Share of net loss of equity-accounted investees		(2,412)		-		(4,896)		(6)
Fair value gain on investments		27,960		-		85,460		-
Net finance income (expense):
Finance income		4		2,545		26		4,982
Finance expense		(779)		(4,747)		(3,058)		(30,035)
Net foreign exchange gain (loss)		(267)		578		(1,506)		(70)
Net finance expense		(1,042)		(1,624)		(4,539)		(25,122)
Profit before income taxes		23,888		14,551		66,034		3,629
Income tax (expense) benefit		(388)		(5,167)		2,392		(9,516)
Net income (loss) attributable to owners of the parent		23,500		9,384		68,426		(5,887)

Weighted-average number of ordinary shares outstanding:
Basic, millions (1)		230.29		227.35		230.28		229.48
Diluted, millions (2)		232.26		227.94		232.52		229.48
Earnings per ADS and per share for net income (loss):
Basic earnings per ADS, US$		0.20		0.08		0.59		(0.05)
Diluted earnings per ADS, US$		0.20		0.08		0.59		(0.05)
Basic earnings per share, US$		0.10		0.04		0.30		(0.03)
Diluted earnings per share, US$		0.10		0.04		0.29		(0.03)

(1) As of September 30, 2022, the total number of shares outstanding for Opera Limited was 226,436,540, equivalent to 113,218,270 ADSs.

(2) Includes the net dilutive impact of employee equity grants. For the nine-month period ended September 30, 2022, diluted weighted-average number of ordinary shares outstanding excludes the effect of 1,891,275 ADSs that will be issued at the vesting of employee equity grants because these potential shares would have had an anti-dilutive effect on the diluted net loss per ADS and per share.

Unaudited Consolidated Statement of Comprehensive Income

	Three Months Ended September 30,				Nine Months Ended September 30,
[US$ thousands]	2021		2022		2021		2022
Net income (loss)		23,500		9,384		68,426		(5,887)
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		(1,415)		(2,412)		(719)		(5,253)
Reclassification of share of other comprehensive income (loss) of equity-accounted investees		-		-		-		708
Other comprehensive loss		(1,415)		(2,412)		(719)		(4,545)
Total comprehensive income (loss) attributable to owners of the parent		22,085		6,973		67,708		(10,431)

Unaudited Consolidated Statement of Financial Position

	As of December 31,		As of September 30,
[US$ thousands]	2021		2022
Assets:
Property and equipment		12,263		11,334
Intangible assets		103,627		103,415
Goodwill		430,378		428,833
Non-current receivables from sale of investments		-		136,142
Non-current investments and financial assets		2,883		2,620
Deferred tax assets		2,323		2,068
Total non-current assets		551,475		684,411

Trade receivables		43,864		54,441
Current receivables from sale of investments		-		31,955
Other current receivables		18,538		8,301
Prepayments		9,192		7,218
Marketable securities		78,135		35,273
Cash and cash equivalents		102,876		166,071
Total cash, cash equivalents, and marketable securities		181,011		201,344
Assets held for sale		288,379		84,600
Total current assets		540,986		387,859
Total assets		1,092,460		1,072,270

Equity:
Share capital		24		24
Other paid in capital		764,381		750,134
Retained earnings		249,155		248,495
Foreign currency translation reserve		(520)		(5,065)
Total equity attributable to owners of the parent		1,013,039		993,588

Liabilities:
Non-current lease liabilities and other loans		2,081		556
Deferred tax liabilities		6,532		8,977
Other non-current liabilities		23		29
Total non-current liabilities		8,635		9,562

Trade and other payables		38,378		41,012
Current lease liabilities and other loans		11,427		3,378
Income tax payable		763		7,076
Deferred revenue		1,092		1,509
Other current liabilities		19,125		16,145
Total current liabilities		70,786		69,120
Total liabilities		79,421		78,683
Total equity and liabilities		1,092,460		1,072,270

Unaudited Consolidated Statement of Changes in Equity

For the nine months ended September 30, 2021 :

[US$ thousands]	Share capital		Other paid in capital		Retained earnings		Foreign currency translation reserve		Total equity attributable to owners of the parent
As of December 31, 2020		24		765,129		283,334		408		1,048,895
Net income		-		-		68,426		-		68,426
Other comprehensive loss		-		-		-		(719)		(719)
Total comprehensive income (loss)		-		-		68,426		(719)		67,707
Acquisition of treasury shares		-		(749)		-		-		(749)
Share-based remuneration		-		-		6,114		-		6,114
As of September 30, 2021		24		764,381		357,873		(311)		1,121,967

For the nine months ended September 30, 2022 :

[US$ thousands]	Share capital		Other paid in capital		Retained earnings		Foreign currency translation reserve		Total equity attributable to owners of the parent
As of December 31, 2021		24		764,381		249,155		(520)		1,013,039
Net loss		-		-		(5,887)		-		(5,887)
Other comprehensive loss		-		-		-		(4,545)		(4,545)
Total comprehensive loss		-		-		(5,887)		(4,545)		(10,432)
Acquisition of treasury shares		-		(14,247)		-		-		(14,247)
Share-based remuneration		-		-		5,227		-		5,227
As of September 30, 2022		24		750,134		248,495		(5,065)		993,588

Unaudited Consolidated Statement of Cash Flows

	Three Months Ended September 30,				Nine Months Ended September 30,
[US$ thousands]	2021		2022		2021		2022
Cash flows from operating activities:
Profit before income taxes		23,888		14,551		66,034		3,629
Adjustments to reconcile profit (loss) before income taxes to net cash flow:
Share-based payment expense		3,663		1,740		6,114		5,227
Depreciation and amortization		4,928		3,438		15,045		10,449
Share of net loss of equity-accounted investees		2,412		-		4,896		6
Fair value gain on investments		(27,960)		-		(85,460)		-
Net finance expense		1,042		1,624		4,539		25,122
Other adjustments		265		(739)		(1,117)		(1,486)
Changes in working capital:
Change in trade and other receivables		(3,754)		(4,961)		(7,923)		(10,278)
Change in prepayments		(2,389)		416		(1,542)		967
Change in inventories		22		(888)		-		(1,586)
Change in loans to customers		9		-		14		-
Change in trade and other payables		(6,458)		2,260		11,137		2,634
Change in deferred revenue		138		(359)		243		417
Change in other liabilities		892		1,048		(548)		(2,112)
Income taxes (paid) received		(134)		(97)		(1,341)		133
Net cash flow from (used in) operating activities		(3,436)		18,032		10,091		33,120
Cash flows from investing activities:
Purchase of equipment		(100)		(165)		(984)		(2,758)
Development expenditure		(1,292)		(1,988)		(3,360)		(4,911)
Acquisition of subsidiary, net of cash acquired		-		-		(9,008)		-
Proceeds from sale of shares in former associates		-		4,000		50,000		36,879
Net sale (purchase) of listed equity instruments		(81,313)		12,191		(84,835)		19,235
Interest income received		-		765		21		799
Net cash flow from (used in) investing activities		(82,705)		14,804		(48,166)		49,245
Cash flows from financing activities:
Acquisition of treasury shares		(1)		(4,379)		(749)		(14,247)
Interests on loans and borrowings		(75)		(42)		(243)		(145)
Repayment of loans and borrowings		(63)		(124)		(411)		(308)
Payment of lease liabilities		(1,878)		(848)		(3,784)		(2,884)
Net cash flow used in financing activities		(2,018)		(5,393)		(5,188)		(17,584)
Net change in cash and cash equivalents		(88,158)		27,442		(43,263)		64,781
Cash and cash equivalents at beginning of period		178,481		139,400		134,168		102,876
Effect of exchange rate changes on cash and cash equivalents		(358)		(771)		(942)		(1,586)
Cash and cash equivalents at end of period		89,964		166,071		89,964		166,071

Financial Details by Business Area

The tables below specify the contribution by each business area.

[US$ thousands]	Three Months Ended September 30, 2021
Business area	Browser and News		Other		Total
Revenue categories:
Search		30,703		-		30,703
Advertising		34,863		9		34,872
Technology licensing and other revenue		-		1,045		1,045
Total revenue		65,566		1,054		66,620
Direct expenses:
Technology and platform fees		(986)		(205)		(1,191)
Content cost		(926)		-		(926)
Cost of inventory sold		(1,220)		-		(1,220)
Marketing and distribution expenses		(31,991)		(326)		(32,317)
Credit loss expense		(79)		-		(79)
Total direct expenses		(35,201)		(531)		(35,732)
Contribution by business area		30,365		523		30,888



[US$ thousands]	Three Months Ended September 30, 2022
Business area	Browser and News		Other		Total
Revenue categories:
Search		35,368		-		35,368
Advertising		49,138		7		49,145
Technology licensing and other revenue		128		707		834
Total revenue		84,634		714		85,347
Direct expenses:
Technology and platform fees		(1,037)		-		(1,037)
Content cost		(841)		-		(841)
Cost of inventory sold		(13,868)		-		(13,868)
Marketing and distribution expenses		(25,877)		(128)		(26,005)
Credit loss expense		(291)		(8)		(299)
Total direct expenses		(41,914)		(136)		(42,050)
Contribution by business area		42,719		578		43,297



[US$ thousands]	Nine Months Ended September 30, 2021
Business area	Browser and News		Other		Total
Revenue categories:
Search		87,210		-		87,210
Advertising		87,203		41		87,244
Technology licensing and other revenue		-		3,909		3,909
Total revenue		174,413		3,950		178,365
Direct expenses:
Technology and platform fees		(2,635)		(539)		(3,175)
Content cost		(2,490)		(22)		(2,512)
Cost of inventory sold		(2,464)		-		(2,464)
Marketing and distribution expenses		(90,241)		(734)		(90,975)
Credit loss expense		(349)		(36)		(385)
Total direct expenses		(98,179)		(1,332)		(99,511)
Contribution by business area		76,234		2,618		78,853



[US$ thousands]	Nine Months Ended September 30, 2022
Business area	Browser and News		Other		Total
Revenue categories:
Search		101,128		-		101,128
Advertising		130,659		22		130,680
Technology licensing and other revenue		773		2,183		2,956
Total revenue		232,561		2,204		234,765
Direct expenses:
Technology and platform fees		(3,320)		-		(3,321)
Content cost		(2,944)		-		(2,944)
Cost of inventory sold		(29,372)		-		(29,372)
Marketing and distribution expenses		(85,115)		(314)		(85,429)
Credit loss expense		(405)		(5)		(410)
Total direct expenses		(121,157)		(320)		(121,477)
Contribution by business area		111,404		1,884		113,288

Personnel Expenses Including Share-based Remuneration

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

	Three Months Ended September 30,				Nine Months Ended September 30,
[US$ thousands]	2021		2022		2021		2022
Personnel expenses, excluding share-based remuneration		17,274		16,146		49,860		48,286
Share-based remuneration, including related social security costs		3,952		1,848		6,923		5,207
Total personnel expenses including share-based remuneration		21,226		17,994		56,782		53,493

Other Operating Expenses

The table below specifies the nature of other operating expenses.

	Three Months Ended September 30,				Nine Months Ended September 30,
[US$ thousands]	2021		2022		2021		2022
Hosting		1,960		2,343		5,713		6,869
Audit, legal and other advisory services		1,286		899		5,228		5,390
Software license fees		442		578		1,331		1,542
Rent and other office expense		743		774		2,367		2,665
Travel		131		477		319		1,049
Other		856		698		2,279		2,188
Total other operating expenses		5,417		5,770		17,236		19,703

Non-IFRS Financial Measures

	Three Months Ended September 30,				Nine Months Ended September 30,
[US$ thousands, except per ADS and share amounts]	2021		2022		2021		2022
Reconciliation of net income (loss) to adjusted EBITDA
Net income (loss)		23,500		9,384		68,426		(5,887)
Add (deduct):
Income tax expense (benefit)		388		5,167		(2,392)		9,516
Net finance expense		1,042		1,624		4,539		25,122
Share of net loss of equity-accounted investees		2,412		-		4,896		6
Depreciation and amortization		4,928		3,438		15,045		10,449
Share-based remuneration		3,952		1,848		6,923		5,207
Non-recurring expenses		-		-		-		1,208
Fair value gain on investments		(27,960)		-		(85,460)		-
Other operating income		(64)		(80)		(218)		(322)
Adjusted EBITDA		8,197		21,382		11,759		45,300

Reconciliation of net income (loss) to adjusted net income
Net Income (loss)		23,500		9,384		68,426		(5,887)
Add (deduct):
Share-based remuneration		3,952		1,848		6,923		5,207
Amortization of acquired intangible assets		857		645		3,999		1,935
Amortization of Nanobank intangible assets (1)		1,759		-		5,277		-
Non-recurring expenses		-		-		-		1,208
Income tax adjustment (2)		(252)		(118)		(1,057)		(430)
Adjusted net income		29,816		11,759		83,567		2,033

Adjusted net income per ADS and per share:
Basic adjusted net income per ADS, US$		0.26		0.10		0.73		0.02
Diluted adjusted net income per ADS, US$		0.26		0.10		0.72		0.02
Basic adjusted net income per share, US$		0.13		0.05		0.36		0.01
Diluted adjusted net income per share, US$		0.13		0.05		0.36		0.01

(1) The amortization of Nanobank intangible assets is included in the line "Share of net income (loss) of equity-accounted investees".

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

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SOURCE Opera Limited

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NorthStar Gaming Announces Revocation of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") is pleased to announce that effective May 16, 2025, the Ontario Securities Commission has revoked the temporary management cease trade order ("MCTO") it had previously granted to the Company on May 8, 2025 under National Policy 12-203 Management Cease Trade Orders, as the Company successfully completed the filing of its annual audited financial statements, management's discussion and analysis, and related certifications for the year ended December 31, 2024 (collectively, the "Annual Filings") on May 14, 2025.

The revocation of the MCTO means members of management are no longer prevented from trading the Company's securities. All of the Annual Filings are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

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NorthStar Gaming Reports Year-End 2024 Results

Annual Revenue Growth of 57%, Gross Margin up 91%

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three months and year ended December 31, 2024. The Company also announced that it will discuss the results on an investor webinar to be held Thursday, May 15, 2025 at 11:00am (please see below for details). All dollar figures are quoted in Canadian dollars.

"We delivered strong financial results in 2024, highlighted by 57% growth in revenue and a 91% increase in gross margin. At the same time, we held marketing expense to a 10% increase and reduced G&A expense, demonstrating the continually improving operating leverage built into our business model," said Michael Moskowitz, Chair and CEO of NorthStar. "Equally important, our team rolled out innovations in both our sportsbook and casino that have further differentiated NorthStar Bets as a premium offering and helped drive the retention of, and engagement with, our loyal customers."

Restatement of Results

The comparative results for the three months and twelve months ended December 31, 2023 have been restated in the financial statements and management's discussion & analysis ("FY2024 MD&A") for the year ended December 31, 2024 to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements (note 2 of the Financial Statements for the year ended December 31, 2024). The Company's payment processor deducted the additional merchant fee from the daily remittances to the Company, and the deductions were not accounted for by the Company. These additional fees were identified as part of the year-end reconciliation of the amount due from the payment processor, and the financial statements and FY2024 MD&A have been adjusted accordingly. These restatements did not impact the cash balances reported for the years ended December 31, 2022, 2023, or 2024. However, they did result in adjustments to the reported current asset balances for those periods.

Financial Highlights for the Fourth Quarter Ended December 31, 2024 ("Q4 2024"):

Total Wagers¹ at Northstarbets.ca were $303.0 million in Q4 2024, a 42% increase compared to $213.3 million in Q4 2023.
Gross Gaming Revenue² at Northstarbets.ca was $10.0 million in Q4 2024, a 31.6% increase from $7.6 million in Q4 2023.
Revenue² was $9.5 million in Q4 2024, a 51% increase from $6.3 million in Q4 2023. Revenue in Q4 2024 includes $1.5 million of managed services revenue, which compares to $0.2 million in Q4 2023.
Gross Margin was $3.6 million, a 71% increase from $2.1 million in Q4 2023, while the Gross Margin percentage increased to 38.1%, up from 33.6% in Q4 2023.
Profit/(loss) before marketing and other expenses¹ was $0.6 million in Q4 2024 compared to a loss of $2.5 million in Q4 2023, indicating that gross margin is now sufficient to cover the Company's overhead expenses.

Financial Highlights for the Year Ended December 31, 2024 ("FY 2024"):

Total Wagers² at Northstarbets.ca were $980.0 million in FY 2024, a 51% increase compared to $648.8 million in the year ended December 31, 2023.
Gross Gaming Revenue² at Northstarbets.ca was $34.0 million in FY 2024, a 51% increase from $22.5 million in FY 2023.
Revenue² was $29.6 million in FY 2024, a 57% increase from $18.8 million in FY 2023. Revenue in FY 2024 includes $2.3 million of managed services revenue, which compares to $0.5 million in FY 2023.³
Gross Margin was $10.5 million, marking a 91% increase from $5.5 million in FY 2023, with the Gross Margin increasing to 35.7%, up from 29.3% in FY 2023.
Profit/(loss) before marketing and other expenses¹ was $0.1 million in FY 2024 compared to a loss of $6.7 million in YTD 2023, an improvement of $6.8 million.

"Early in 2025, we completed our most significant fund-raising to date, with a $43.4 million debt financing. This capital gives us a long runway on which to continue our trajectory of growth in wagering, gross margins and improving operating leverage. This was a milestone event for our business," added Mr. Moskowitz.

2024 Operating Highlights:

Completed the inaugural Blackjack Championship tournament, an innovative online competition that helped drive the acquisition of new high-value players and engagement for existing customers while increasing Blackjack wagering activity.
Implemented a series of enhancements to the NorthStar Bets platform, highlighted by streamlined navigation in both the Casino and Sportsbook sections, a doubling of Casino game selection since the start of 2024, personalized prop bets and intelligent parlay suggestions.
Introduced the "NorthStar Elite" program and branded tables to help secure the loyalty and satisfaction of our most active players and reinforcing the Company's positioning as a premium offering.
Launched "Sports Insights 2.0," a robust suite of enhancements to our content vertical that includes a redesigned home page, comprehensive team and player statistics, injury and player news feeds, added coverage of popular sports and strengthened casino content.
Gained significant traction outside the Ontario market with managed services revenue from Northstarbets.com site, owned by the Abenaki Council of Wolinak, increasing from $0.5 million in FY 2023 to $2.3 million in FY 2024.
Outpaced the industry growth rates reported by iGaming Ontario in 2024 in both Total Wagers (51% for NorthStar vs. 33% for the industry) and Gross Gaming Revenue (51% for NorthStar vs. 31.5% for the industry).

Outlook

"We expect our consistent pattern of year-over-year revenue increases to continue throughout 2025, based on our ongoing success in attracting and engaging high-value players," said Mr. Moskowitz. "We will maintain disciplined control over costs so that incremental gross margin falls primarily to the bottom line. As we continue to focus on operational excellence, we remain confident that we have the capital necessary to reach profitability based on our current business platform."

FY 2024 Corporate Update Webinar

On May 15, 2025, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's FY 2024 Earnings, current operations and strategic priorities. All investors and other interested parties are invited to register for the webinar at the link below.

Date: Thursday, May 15, 2025
Time: 11:00 am EDT
Register: Webinar Registration

Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.

Extension of Strategic Marketing Agreement

The Company also announced that its wholly owned subsidiary, NorthStar Gaming (Ontario) Inc. ("NorthStar Ontario"), has extended its strategic partnership with Playtech Software Limited ("Playtech Software") through the renewal of their previously announced strategic marketing agreement. Under the agreement, Playtech Software contributes services designed to accelerate NorthStar Ontario's player acquisition strategy in the province. The agreement was first implemented in June 2023 and has since been renewed several times. Pursuant to the latest renewal, Playtech Software will reimburse marketing expenses valued at a total of up to $1.5 million over a 3-month period through to March 31, 2025. Playtech Software will be compensated through a share of revenue from the income generated in connection with the marketing initiatives to which it contributes. The Transaction between Playtech and NorthStar Ontario is exempted from Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions.

"We are very pleased to renew the marketing services agreement with Playtech Software," said Michael Moskowitz, Chair and CEO of NorthStar. "The agreement serves to extend our marketing budget and has contributed to our tremendous growth in Ontario. Playtech plc continues to be a valuable strategic partner and we look forward to further collaboration."

Continuous Disclosure

Further to a review by the staff of the Ontario Securities Commission (the "OSC") of the Company's continuous disclosure, the FY2024 MD&A includes enhanced disclosures with respect to:

the Company's regulatory framework, licensing regimes applicable to its business operations and the legal authorizations necessary to conduct its business operations;
specific risk factors relating to the Company's business operations which include risks relating to operating in a heavily regulated industry, cyber security risks and risks relating to conflicts of interest with respect to directors and officers of the Company; and
the relationship between the Abenaki Council of Wolinak and the Company as well as its subsidiary, Slapshot Media Inc.

Such amended disclosure is being included in the FY2024 MD&A to address comments received from the OSC on its management's discussion & analysis, for the period ended September 30, 2024, and to improve the Company's disclosure.

As a result of having to include such enhanced disclosure after the OSC review, the Company will be placed on the public list of Refilings and Errors in accordance with OSC Staff Notice 51-711 (Revised) - Refilings and Corrections of Errors for a period of three (3) years.

Additional Information

For additional information, please refer to the Company's condensed consolidated financial statements for the year ended December 31, 2024, and the corresponding FY2024 MD&A. These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.

About NorthStar

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-IFRS Financial Measures [/ Reconciliation of Non-IFRS Measures to IFRS Measures]

Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" "Total Wagers" and "Profit/(Loss) before marketing and other expenses" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.

Total Wagers

Total Wagers are calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.

Gross Gaming Revenue

Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

Reconciliation of Non-IFRS Measures to IFRS Measures

In Q4 2024, the Company reported $10.0 million of Gross Gaming Revenue ($34.0 million in FY 2024) and has provided a reconciliation to the most comparable IFRS financial measure (Revenue) as follows: $ Millions (unaudited)	Unaudited Three months ended		Year ended
	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Gross gaming revenue from wagered games	$10.0	$ 7.6	$ 34.0	$22.5
Bonuses, promotional costs and free bets	(2.0)	(1.5)	(6.7)	(4.2)
Sub-total Gaming revenue	8.0	6.1	27.3	18.3
Other revenue from managed services	1.5	0.2	2.3	0.5
Revenue	$ 9.5	$ 6.3	$ 29.6	$ 18.8

Operating Results

Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.

$ Millions (unaudited)	Unaudited Three months ended		Year ended
$ Millions (unaudited)	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Revenue	$ 9,478	$ 6,275	$ 29,556	$ 18,845
Cost of Revenues	5,868	4,167	19,013	13,317
Gross Margin	3,610	2,108	10,543	5,528
General and administrative expenses	3,033	4,452	10,453	12,277
Profit/(Loss) before marketing and other expenses (1)	577	(2,344)	90	(6,749)
Marketing	5,249	5,472	15,456	14,094
Loss before other expenses (1)	(4,672)	(7,816)	(15,366)	(20,843)
Other expenses	(1,070)	149	3,645	6,547
Net loss	$ (3,602)	$ (7,965)	$ (19,011)	$ (27,390)

(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.

Cautionary Note Regarding Forward-Looking Information and Statements

This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities, and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Company Contact:

Corey Goodman
Chief Development Officer 647-530-2387
investorrelations@northstargaming.ca

Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com

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NorthStar Gaming Announces Receipt of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces that its principal regulator, the Ontario Securities Commission, has granted its request for a management cease trade order ("MCTO") effective May 8, 2025.

As previously announced on April 29, 2025, the Company applied for the MCTO due to a delay in filing its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (the "Annual Filings") which were required to be filed by April 30, 2025.

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NorthStar Gaming Announces Delay of Annual Filings

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces an anticipated delay in the filing of its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (collectively, the "Annual Filings"). The Company does not expect to file its Annual Filings by the regular filing deadline of April 30, 2025, as required, due to an unanticipated delay relating to the audit of the Annual Filings. The Company is working diligently with its auditor to finalize the Annual Filings and expects to file the Annual Filings no later than May 15, 2025.

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Opera Reports Record Third Quarter 2022 Results

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Investor Insight

Overview

Financial Performance

Company Highlights

Key Brands

NorthStarBets.ca

NorthStarBets.com

Management Team

Michael Moskowitz – CEO and Chairman

Corey Goodman – Chief Development Officer, Counsel and Corporate Secretary

Chin Dhushenthen – Chief Financial Officer

Barry Shafran – Lead Director

Vic Bertrand – Director

Brian Cooper – Director

Sylvia Prentice – Director

Dean MacDonald – Director

Chris McGinnis – Director

Alex Latner – Director, General Counsel, Playtech

Mike Cormack – Head of Content & Integrations

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