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UPDATE 2-Norway's Opera aims to double sales by 2019/2020
March 30, 2017 / 5:35 AM / 9 months ago

UPDATE 2-Norway's Opera aims to double sales by 2019/2020

(Adds CEO quotes, share price, analyst, detail)

March 30 (Reuters) - Norway’s Opera Software Asa on Thursday set a goal to raise its revenues to more than $1 billion in 2019 or 2020, from $537 million in 2016, and to boost its EBITDA earnings margin to about 15 percent from the 9.1 percent seen last year.

* Thomson Reuters Eikon data show analysts had on average expected Opera’s revenues to rise to $778 million in 2019, with an EBITDA margin of 13.4 percent

* Opera’s shares traded 4.6 pct higher for the day at NOK 40.7 by 1030 GMT

* Company maintains 2017 target of revenues $550 million-$650 million, up from $537 million in 2016

* Maintains 2017 target of adjusted EBITDA $50 million-$70 million, corresponding to an EBITDA margin of 9-11 percent

* Says medium-term ambition is for revenue to exceed $1 billion, adjusted EBITDA margin of about 15 percent

* CEO Lars Boilesen told Reuters: “medium-term” refers to 2019 or 2020, depending on how quickly the AdColony unit grows

* Brokerage Pareto Securities said Opera’s medium-term sales and EBITDA targets sharply exceed market expectations for 2019

* Pareto: ”this adds confidence in the company’s ability to lift margins within mobile advertising, which have come under pressure the past 2 years, and we expect a positive share reaction today

* Pareto has buy recommendation and a target price of NOK 43

* Opera says main drivers of medium-term ambition in AdColony unit are new product launches and automation/operational efficiencies

* Says main drivers of medium-term ambition in Bemobi unit are its market-leading position in Latin America and an international expansion

* Says main drivers of medium-term ambition in SurfEasy are white-label VPN solution roll-out with partners and continued growth in consumer VPN subscribers

* Says main drivers of medium-term ambition in SkyFire are a push from mobile operators for unlimited data plans and “wins and design-ins from network suppliers” Source text for Eikon: Further company coverage: (Reporting by Ole Petter Skonnord; editing by Niklas Pollard and Terje Solsvik)

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