Opera Software in New Pact with Google, Positive on Prospects

   By Dominic Chopping 
 

Norwegian web browser developer Opera Software ASA (OPERA.OS) said Wednesday it has entered into a new agreement with Google Inc. (GOOG) to integrate Google as the default search partner for the Opera mobile and desktop browsers, and said it remains positive about the company's overall growth prospects.

 
   MAIN FACTS: 

-The agreement also includes promotion of various Google products and services. This agreement replaces the agreements entered into on Nov. 20, 2009 and is effective through Aug. 1, 2014.

-This agreement covers all global territories and includes all of Opera's standard mobile and desktop Web browsers.

-Opera remains positive about the company's overall growth prospects, which are expected to be driven primarily by the mobile browser and mobile advertising businesses going forward.

-Within Opera's Mobile Publisher & Advertiser business - non-Opera owned and operated properties, Opera expects to generate meaningfully more revenue from this business in 2012 compared to 2011, as Opera ramps up revenue directly from advertisers and ad agencies via its mobile advertising network subsidiaries, Mobile Theory and 4th Screen Advertising, and capitalizes on AdMarvel's strong position with premium USA publishers.

-Opera's key operational priorities in 2012 include continuing to sign up additional operators and grow active users of Opera's new, and existing, products and services with existing operator customers.

-Seeks to grow revenues and users of Opera's mobile consumer products, particularly on the Android smartphone platform, and expand usage and monetization of Opera's owned and operated properties.

-To increase revenue from mobile publishers and advertisers by expanding demand-side advertising reach and capabilities.

-To increase position with mobile phone OEMs and chipset makers to drive greater distribution of mobile products.

-To grow Opera's desktop user base, particularly in Russia/CIS.

-To build on momentum with ConnectedTV manufacturers and to increase Opera's overall profitability and margins.

-Revenue $52.1 million, from $39.4 million.

-Restructure costs $4.3 million.

-Ebit $6.7 million, from $8.1 million.

-Net profit $1 million, from $5.1 million.

-Shares closed Tuesday at NOK44.40, valuing the company at NOK5.31 billion.

-Write to Dominic Chopping at [e-mail]

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