Otello Corporation ASA

Earnings Release • Feb 10, 2016

OPERA SOFTWARE ANNOUNCES FOURTH QUARTER RESULTS

OPERA SOFTWARE ANNOUNCES FOURTH QUARTER RESULTS

Record revenue; strong momentum for advertising and performance business going

into 2016.

Oslo, Norway - February 10, 2016 - Opera Software (OSEBX: OPERA) today reported

financial results for the fourth quarter, which ended December 31, 2015.

4Q 2015 financial highlights include:

· § Revenue was $193.5 million in 4Q15, up from $154.4 million in 4Q14, an

increase of 25%. On a constant currency basis, revenue growth was 29% in 4Q15

vs. 4Q14.

· § Adjusted EBITDA* (excluding one-time costs) of $32.8 million, down 5%

versus 4Q14

· § Operating Cash Flow of $21.4m versus $20.3m in 4Q14

· § Free Cash Flow** of $14.8m versus $12.5m in 4Q14

Revenues

Revenue in 4Q15 was $193.5 million, up 25% from 4Q14, when revenue was $154.4

million. On a constant currency basis, revenue would have been $198.9 million an

increase of 29%. Overall, revenues came in above Opera´s guidance range for the

quarter.

Profit

EBITDA, excluding stock-based compensation expenses and one-time costs, was

$32.8 million compared with $34.4 million in 4Q14, down 5%. EBITDA (excluding

one-time costs) was $29.9 million in 4Q15 compared with $30.7 million in 4Q14.

EBIT (excluding one-time costs) was $14.5 million in 4Q15 compared to $19.4

million (excluding the impairment charge related to Skyfire) in 4Q14. Overall,

Adjusted EBITDA came in at the very high end of Opera´s guidance range for the

quarter.

4Q15 IFRS Net Income was -$6.6 million compared to -$58.3 million in 4Q14. Non

-IFRS 4Q15 Net Income was $11.2 million compared to $25.7 million in 4Q14.

Liquidity and capital resources

Opera's net cash flow from operating activities was $21.4 million in 4Q15

compared to $20.3 million in 4Q14. Opera's total cash balance was impacted

positively by net cash flow from operating activities and negatively by cash

outlays related to acquisitions, investments in research and development and

capital expenditures. Cash and cash equivalents at the end of 4Q15 were $97.7

million compared to $138.2 million in 4Q14.

Operational Highlights

· § Mobile Advertising (3rd Party Publishers)

Revenue of $145.4 million, up 41% vs. 4Q14

Mobile video advertising revenues comprised 60% of Mobile Advertising revenue in

4Q15 vs. 50% in 4Q14

Audience reach (3rd Party Publishers) exceeded 1 billion consumers in 4Q15

compared to 800 million in 4Q14 (including Opera´s O&O audience, audience reach

exceeded 1.3 billion in 4Q15 vs 1.1 billion in 4Q14)

The number of apps and websites powered by the Opera Mediaworks ad platforms was

25,000 in 4Q15 compared to 18,500 in 4Q14

Change of Leadership at Opera Mediaworks, with Will Kassoy, formerly CEO of

AdColony, taking over as CEO of Opera Mediaworks

AT&T AdWorks launches cross-screen addressable advertising trial

· § Consumers (Owned and Operated Properties)

Revenue of $36.6 million, up 24% vs. 4Q14 (up 38% on a constant currency basis

vs. 4Q14)

Mobile browser revenue grew 40% in 4Q15 vs. 4Q14, with solid advertising and

search revenue growth

Opera´s Android monthly browser users reached 144 million at the end of 4Q15, up

11% versus the end of 4Q14

Total Opera mobile consumer browser users reached 281 million at the end of

4Q15, up 2% versus the end of 4Q14

The number of downloads generated via the Opera Mobile Store and Opera´s other

apps and games discovery properties was 510 million in 4Q15 compared to 153.8

million in 4Q14

Total of 26.6 billion ad requests were generated from Opera´s mobile Owned and

Operated properties, a decrease of 28% from 4Q14

Opera launches new versions of both Opera Mini for Android and iOS and Opera

Coast for iOS

Desktop users reached 59 million by the end of 4Q15, up 7% versus the end of

4Q14

· § Tech Licensing

Revenue of $11.5 million, down 47% vs. 4Q14

Opera TV powers Humax's industry-first Freeview Play set-top box

Opera TV launches on LG Smart TVs

Guidance

1Q FY16 Guidance***:

Revenue: Revenue for the company's first fiscal quarter is projected to be in

the range of $152m to $160m.

Adj EBITDA*: Adjusted EBITDA for the company's first fiscal quarter is projected

to be in the range of $14m to $18m.

FY16 Outlook***:

Revenue: Revenue for the company's full fiscal year 2016 is projected to be in

the range of $690m to $740m.

Adj EBITDA*: Adjusted EBITDA for the company's full fiscal year 2016 is

projected to be in the range of $100m to $125m.

Please find the fourth quarter report (4Q15.pdf), fourth quarter press release

(4Q15_Press_release.pdf) and fourth quarter presentation (4Q15_presentation.pdf)

attached.

Webcast:

http://www.operasoftware.com/company/investors/webcasts/q42015

Petter Lade, Investor Relations

Tel: +47 2369 2400

*"Adjusted EBITDA", or Non- IFRS EBITDA, refers to EBITDA excluding stock-based

compensation expenses,  one-time costs and acquisition costs.

**Operating Cash Flow less capital expenditures and capitalized R&D costs

*** Assumes currency rates as of February 9th, 2016

This Press Release contains forward-looking statements. These statements

include, among other things,

statements regarding future operations and business strategies and future

financial condition and prospects.

These forward-looking statements are subject to certain risks and uncertainties

that could cause our actual

results to differ materially from those reflected in the forward-looking

statements. Factors that could cause

or contribute to such differences are covered in the Opera Software FY 2014

Annual Report under the heading "Risk Factors." We undertake no obligation to

revise or publicly release the results of any revision to these forward-looking

statements, except as required by law. Given these risks and uncertainties,

readers are cautioned not to place undue reliance on such forward-looking

statements.

About Opera Software ASA

Opera enables more than 350 million internet consumers worldwide to connect with

the content and services that matter most to them. Opera also helps publishers

monetize their content through advertising and advertisers reach the audiences

that build value for their businesses, capitalizing on a global consumer

audience reach that exceeds 1 billion.