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BlackRock® Canada Announces September Cash Distributions for the iShares® ETFs

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TORONTO, Sept. 18, 2019 (GLOBE NEWSWIRE) — BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK), today announced the September 2019 cash distributions for the iShares ETFs listed on the TSX or NEO which pay on a monthly or quarterly basis. Unitholders of record of a fund on September 25, 2019 will receive cash distributions payable in respect of that fund on September 30, 2019.

Details regarding the “per unit” distribution amounts are as follows:

Fund Name Fund Ticker Cash Distribution Per Unit ($)
iShares 1-10 Year Laddered Corporate Bond Index ETF CBH 0.051
iShares 1-5 Year Laddered Corporate Bond Index ETF CBO 0.041
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF CDZ 0.103
iShares Equal Weight Banc & Lifeco ETF CEW 0.038
iShares Global Real Estate Index ETF CGR 0.193
iShares U.S. High Yield Fixed Income Index ETF (CAD-Hedged) CHB 0.088
iShares International Fundamental Index ETF CIE 0.091
iShares Global Infrastructure Index ETF CIF 0.155
iShares 1-5 Year Laddered Government Bond Index ETF CLF 0.034
iShares 1-10 Year Laddered Government Bond Index ETF CLG 0.044
iShares US Fundamental Index ETF CLU 0.080
iShares US Fundamental Index ETF CLU.C 0.096
iShares S&P/TSX Canadian Preferred Share Index ETF CPD 0.053
iShares Canadian Fundamental Index ETF CRQ 0.118
iShares Short Duration High Income ETF (CAD-Hedged) CSD 0.076
iShares US Dividend Growers Index ETF (CAD-Hedged) CUD 0.063
iShares Convertible Bond Index ETF CVD 0.069
iShares Emerging Markets Fundamental Index ETF CWO 0.624
iShares Global Water Index ETF CWW 0.178
iShares Global Monthly Dividend Index ETF (CAD-Hedged) CYH 0.074
Dynamic iShares Active Tactical Bond ETF DXB 0.042
Dynamic iShares Active Canadian Dividend ETF DXC 0.040
Dynamic iShares Active Global Financial Services ETF DXF 0.100
Dynamic iShares Active Crossover Bond ETF DXO 0.057
Dynamic iShares Active Preferred Shares ETF DXP 0.072
Dynamic iShares Active Investment Grade Floating Rate ETF DXV 0.036
iShares Canadian Financial Monthly Income ETF FIE 0.040
iShares Core Balanced ETF Portfolio XBAL 0.105
iShares Core Canadian Universe Bond Index ETF XBB 0.074
iShares S&P/TSX Global Base Metals Index ETF XBM 0.044
iShares Canadian Corporate Bond Index ETF XCB 0.053
iShares Canadian Growth Index ETF XCG 0.167
iShares Core Conservative Balanced ETF Portfolio XCNS 0.058
iShares S&P/TSX SmallCap Index ETF XCS 0.123
iShares Canadian Value Index ETF XCV 0.235
iShares Core MSCI Global Quality Dividend Index ETF XDG 0.074
iShares Core MSCI Global Quality Dividend Index ETF (CAD-Hedged) XDGH 0.058
iShares Core MSCI Canadian Quality Dividend Index ETF XDIV 0.075
iShares Core MSCI US Quality Dividend Index ETF XDU 0.048
iShares Core MSCI US Quality Dividend Index ETF (CAD-Hedged) XDUH 0.046
iShares Canadian Select Dividend Index ETF XDV 0.090
iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) XEB 0.070
iShares S&P/TSX Capped Energy Index ETF XEG 0.062
iShares S&P/TSX Composite High Dividend Index ETF XEI 0.091
iShares Jantzi Social Index ETF XEN 0.156
iShares Core Equity ETF Portfolio XEQT 0.082
iShares ESG MSCI Canada Index ETF XESG 0.046
iShares Edge MSCI Multifactor USA Index ETF (CAD-Hedged) XFA 0.082
iShares Edge MSCI Multifactor Canada Index ETF XFC 0.143
iShares Edge MSCI Multifactor EAFE Index ETF (CAD-Hedged) XFF 0.183
iShares Edge MSCI Multifactor EAFE Index ETF XFI 0.166
iShares S&P/TSX Capped Financials Index ETF XFN 0.104
iShares Floating Rate Index ETF XFR 0.031
iShares Edge MSCI Multifactor USA Index ETF XFS 0.083
iShares Canadian Government Bond Index ETF XGB 0.042
iShares S&P/TSX Global Gold Index ETF XGD 0.005
iShares Global Government Bond Index ETF (CAD-Hedged) XGGB 0.029
iShares Core Growth ETF Portfolio XGRO 0.088
iShares Canadian HYBrid Corporate Bond Index ETF XHB 0.066
iShares U.S. High Dividend Equity Index ETF (CAD-Hedged) XHD 0.065
iShares U.S. High Dividend Equity Index ETF XHU 0.050
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) XHY 0.087
iShares Core S&P/TSX Capped Composite Index ETF XIC 0.219
iShares U.S. IG Corporate Bond Index ETF (CAD-Hedged) XIG 0.062
iShares Core Income Balanced ETF Portfolio XINC 0.051
iShares Core Canadian Long Term Bond Index ETF XLB 0.067
iShares S&P/TSX Capped Materials Index ETF XMA 0.025
iShares S&P/TSX Completion Index ETF XMD 0.173
iShares Edge MSCI Min Vol USA Index ETF (CAD-Hedged) XMS 0.091
iShares Edge MSCI Min Vol USA Index ETF XMU 0.188
iShares Edge MSCI Min Vol Canada Index ETF XMV 0.229
iShares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged) XPF 0.072
iShares High Quality Canadian Bond Index ETF XQB 0.044
iShares S&P/TSX Capped REIT Index ETF XRE 0.064
iShares ESG Canadian Aggregate Bond Index ETF XSAB 0.046
iShares Core Canadian Short Term Bond Index ETF XSB 0.054
iShares Conservative Short Term Strategic Fixed Income ETF XSC 0.045
iShares Conservative Strategic Fixed Income ETF XSE 0.049
iShares Core Canadian Short Term Corporate + Maple Bond Index ETF XSH 0.045
iShares Short Term Strategic Fixed Income ETF XSI 0.052
iShares Short Term High Quality Canadian Bond Index ETF XSQ 0.035
iShares S&P/TSX Capped Consumer Staples Index ETF XST 0.136
iShares ESG Canadian Short Term Bond Index ETF XSTB 0.040
iShares ESG MSCI USA Index ETF XSUS 0.048
iShares Diversified Monthly Income ETF XTR 0.050
iShares Core S&P U.S. Total Market Index ETF (CAD-Hedged) XUH 0.126
iShares S&P/TSX Capped Utilities Index ETF XUT 0.077
iShares Core S&P U.S. Total Market Index ETF XUU 0.138

Estimated September Cash Distributions for the iShares Premium Money Market ETF

The September cash distributions per unit for the iShares Premium Money Market ETF are estimated to be as follows:

Fund Name Fund Ticker Estimated Cash Distribution Per Unit ($)
iShares Premium Money Market ETF CMR 0.062

BlackRock Canada expects to issue a press release on or about September 24, 2019, which will provide the final amounts for the iShares Premium Money Market ETF.

Further information on the iShares Funds can be found at http://www.blackrock.com/ca.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of June 30, 2019, the firm managed approximately US$6.84 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/ca | Twitter: @BlackRockCA | LinkedIn: www.linkedin.com/company/blackrock.

About iShares

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and US$2 trillion in assets under management as of June 30, 2019, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm1.

1 Based on US$6.84 trillion in AUM as of 6/30/19

iShares® ETFs are managed by BlackRock Asset Management Canada Limited.

Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. 

Contact for Media:
Maeve Hannigan
T – 416-643-4058
Email: Maeve.Hannigan@blackrock.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

IT

GBT – AI Technology To Be Implemented Within Epsilon Program

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SANTA MONICA, Calif., Nov. 14, 2019 (GLOBE NEWSWIRE) — GBT Technologies Inc. (OTC PINK: GTCH) (“GBT”, or the “Company”), a company specializing in the development of Internet of Things (IoT) and Artificial Intelligence (AI) enabled networking and tracking technologies, including its GopherInsight™ wireless mesh network technology platform and its Avant! AI, for both mobile and fixed solutions, announced that it is implementing its Avant! AI technology within Epsilon EDA (Electronic Design Automation) program with the goal of achieving increased reliability for microchips.

Avant! AI will be trained with IC (Integrated Circuit) reliability models, based on physics-of-failure mechanisms. These models will be classified for a wide variety of microchips types, among them microcontrollers, microprocessors, memories, power ICs and others. The system will read the microchip’s specifications and define reliability analysis to be automatically tested by Epsilon. As the design moves forward and a more physical layout is produced, the system will adapt to identify weak spots, predicting potential reliability failures due to physics phenomena like Negative Bias Temperature Instability (NBTI), Electromigration (EM), Hot Carrier Injection (HCI) and Time Dependent Dielectric Breakdown (TDDB). The system is targeting a chip’s reliability prediction to be addressed during early design stages, making correction easier. It is the goal that Epsilon will be able to provide a wide range of reliability predictions, ensuring reliable operation and efficient power consumption. Epsilon will predict, test and validate signals at risk. When potential failures are identified, Epsilon will perform an Auto-Correct to resolve the issue. It is the goal of Epsilon to ensure that microchips will not overheat and fail due to excessive power consumption or faulty design. GBT believes that its reliability predictions, early addressing and auto-correction will become a key player when designing modern chips, especially for high reliability demand fields like military, aviation/space and medicine.

“We identified the EDA field, a modern domain used to design integrated circuits (ICs), that we believe can significantly benefit from our AI technology,” stated Danny Rittman, GBT’s CTO. “One of the major problems with our today’s advanced chips, is their reliability. If a chip is not going through accurate electrical design for reliability, it can overheat, perform poorly or fail. We are now focused on enabling our analysis and auto-correction program, Epsilon, with the capability of predicting potential inner-chip nets that may overheat, cause poor performance or failure over time. Using our Avant! AI deep learning technology within Epsilon, the program will constantly monitor the chip’s design as it evolves, alerting about potential risks. Furthermore, by user permission, Epsilon will be able to perform Auto-Correction for the at-risk signals, creating a Correct-By-Construction chip design environment. Avant! will perform an over-time analysis prediction to indicate how long failure(s) may take for critical nets. This will enable IC design houses to work more efficiently with customer budgets, knowing a chip’s life span. Using Avant! AI for the IC reliability domain will ensure high reliability and performance ICs which are particularly crucial for areas like aviation, space exploration, military and medicine, where human lives depend on integrated circuits operation.”

About GBT Technologies Inc.

GBT Technologies Inc. (OTC PINK: GTCH) (“GBT”) (http://gopherprotocol.com/) is a development-stage company which considers itself a native IoT creator, developing Internet of Things (IoT) and Artificial Intelligence (AI) enabled mobile technology platforms. Gopher has a portfolio of Intellectual Property that, when commercialized, will include smart microchips, mobile and security applications and protocols, and supporting cloud software. Gopher’s system envisions the creation of a global mesh network. The core of the system will be its advanced microchip technology that can be installed in any mobile or fixed device worldwide. GBT envisions this system as a low-cost, secure, private mesh network between any enabled devices, providing shared processing, advanced mobile database management/sharing and enhanced mobile features as an alternative to traditional carrier services.

https://www.avant-ai.net

About GBT Technologies, S.A.

GBT Technologies, S.A., a private Costa Rican corporation (GBT – http://gbttechnologies.com/) is a development-stage company in the business of the strategic management of BPO (Business Process Outsourcing) digital communications processing for enterprises and startups; distributed ledger technology development, AI development and fintech software development and applications. 

https://aggregatorv2.genesisexchange.io (New Beta Version)

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements”. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, governmental and public policy changes, the Company’s ability to raise capital on acceptable terms, if at all, the Company’s successful development of its products and the integration into its existing products and the commercial acceptance of the Company’s products. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of the press release.

Contact:
Dr. Danny Rittman, CTO
GBT Technologies Inc.
Media: press@gopherprotocol.com

 

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Questor Technology Inc. Announces Third Quarter 2019 Results

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CALGARY, Alberta, Nov. 14, 2019 (GLOBE NEWSWIRE) — Questor Technology Inc. (“Questor” or the “Company”) (TSX-V: QST) is pleased to announce its financial and operating results for the third quarter of 2019.

For the Three months ended September 30 Nine months ended September 30
  2019 2018 2019 2018
(stated in CDN$)
(unaudited)
($) ($) ($) ($)
Revenue 8,293,734 5,761,465 23,377,705 17,491,620
Gross Profit 4,034,759 3,880,343 13,019,726 11,005,699
Earnings for the period        
Per share — basic 0.07 0.07 0.23 0.21
Per share — diluted 0.07 0.07 0.22 0.21
As at   September 30, 2019   December 31, 2018
Working capital, end of period   15,847,765   13,104,925
Total assets, end of period   39,472,381   30,942,245
Total equity, end of period   34,102,235   26,379,455
         

FINANCIAL HIGHLIGHTS SUMMARY

Questor’s unaudited consolidated financial statements and notes thereto and Management’s Discussion and Analysis for the three and nine months ended September 30, 2019 are available on the Company’s website at www.questortech.com and through SEDAR at www.sedar.com.

PRESIDENT’S MESSAGE

Audrey Mascarenhas, Questor’s President and Chief Executive Officer commented, “I am pleased to report that the Questor team has delivered strong results in the third quarter. We remain on pace for 2019 to be another record revenue and earnings year.

The strong performance in the third quarter of 2019 is a result of great effort by the Company to secure sales contracts in Mexico, Texas, and NE British Columbia. Equipment sales during the three months ended September 30, 2019 increased $2.8 million versus the same period of 2018.

We previously announced that the Company has been awarded two projects, totaling $8.2 million, to supply clean combustion incineration technology with our waste heat to power generation equipment at multiple oil and gas production facilities in Mexico. During the third quarter, the Company achieved certain contract milestones and recognized $2.5 million of sales revenue related to the two contracts. In total, $5.9 million of sales revenue has been recorded for these projects at September 30, 2019. We expect to complete the balance of the contracts during the fourth quarter of 2019 and first quarter of 2020. Questor is ambitious with its 2020 expectations for Mexico, given Mexico’s aggressive objectives to address emissions within its mature oil and gas industry.

In addition, I am happy to announce that we have received a new purchase order for $2.2 million for emissions control equipment in Pennsylvania from a large Midstream Company at six of their facilities. We expect to complete the Pennsylvania contract in the fourth quarter of 2019. Questor is proud and privileged to serve and support new and existing clients in fulfilling their commitment to utilize industry leading technology to control emissions.  Underlying Pennsylvania, Ohio and West Virginia are the Utica and Marcellus shale plays, forecasted to supply 45% of the US’s natural gas production by 2040.  Questor has also been awarded a project for a permanent incinerator to be installed in a biogas water treatment plant in Colorado. This holds significance as it is within a Municipality that is well known to require extremely high standards for any industry that operates within its jurisdiction.  After a competitive bid process, we are privileged to be selected for this project as it signifies our competitiveness in the permanent market in Colorado.  It also validates that our low-pressure burner technology translates to bottom-line value for our clients.

Questor is focused on serving our growing list of clients in the North American basins as they focus on meeting regulatory requirements in the new environmental reality. We expect our sales revenue streams to continue to be a vital, and growing part of our business.  

Our rental revenues have increased for the 9 months ending September 30, 2019 versus 2018. Our rental business is performing very well despite new regulations in Colorado (Senate Bill 19-181) which has slowed investment in the state’s oil and gas fields as producers grapple with how local officials will respond to a law giving them more power. Questor’s Colorado clients have reduced their capital budgets, which has resulted in lower demand for our emissions control equipment in the state during 2019 with the reduced drilling activity.  The North Dakota market and our initial entry into Texas, Wyoming and New Mexico have contributed significantly to 2019 rental revenues and fleet utilization.

Colorado is ground zero for a combination of oil and gas production and environmental stewardship. Large operators are changing their approach in Colorado, recognizing they are dealing with a new social reality. Responding to that social reality includes community engagement and altering drilling plans by adding cleaner, quieter technology. Our clients believe they can work with communities, and even thrive under Senate Bill 19-181 and tough new regulations. The Company expects demand for its emissions control equipment will increase in 2020 as Colorado clients respond to the new regulations. Our data project is gaining interest with our clients as they see this technology can assist compliance with the evolving regulations.

In North Dakota, the Industry has invested billions on gas processing infrastructure but is years from catching up. North Dakota regulators are projecting that the states increasing gas production will outstrip that new capacity. Demand for the Company’s emissions control equipment in North Dakota is expected to remain strong going into 2020.

Questor is pleased to announce it has been named in the inaugural Report on Business ranking of Canada’s Top Growing Companies, an annual rank of Canadian companies based on three-year revenue growth. The Canada’s Top Growing Companies ranking program aims to celebrate entrepreneurial achievement in Canada by identifying and amplifying the success of growth-minded, independent businesses in Canada. The Globe and Mail reports Questor is ranked 185th out of the 400 companies on the inaugural Report on Business ranking of Canada’s Top Growing Companies ranking demonstrate ambition, innovation and tremendous business acumen. Their contributions to the economy help to make Canada a better place, and warrant commendation.”

THREE MONTHS ENDED SEPTEMBER 30, 2019

  • Revenue increased $2.5 million (44%) during the three months ended September 30, 2019 versus the same period of 2018:

    — Equipment sales increased $2.8 million from $0.8 million to $ 3.6 million. The Company achieved certain contract milestones and recognized $2.5 million of sales revenue related to the two previously announced Mexico contracts. The Company also sold clean combustion incineration technology to a client in Texas for a midstream project in the Eagleford and provided clean combustion incineration technology to a client in North East BC for an oil and gas processing facility in the Montney;

    — Revenue from incinerators rentals decreased $0.3 million (9%) from $4.3 million to $ 4.0 million. The Company recorded a 28% increase in the number of days rented for the three months ended September 30, 2019 versus the same period in 2018.  The increase in the number of rental days was offset by pricing incentives. The higher mix of contracts with pricing incentives has reduced the equivalent day rates realized during the three months ended September 30, 2019 versus the same period in 2018. The Company expects that the strategy to enter into longer term rental contracts will result in more consistent revenue streams and higher customer retention.
     

  • Gross margin performance for the period is below management’s expectations. The Company incurred higher than expected costs relating to the power generation projects in Mexico. The Mexico projects are the Company’s initial effort in a new and rapidly emerging market, combining combustion incineration technology with power generation equipment. The cost overruns relate to additional equipment required for installations where no local existing electricity grid exists. The Company has identified solutions for any future installations to ensure that gross margins are consistent with initial expectations.
     
  • Earnings increased $0.2 million (12.7%) during the three months ended September 30, 2019 versus the same period of 2018.
     
  • The Company continues to expand its incinerator rental fleet, incurring capital expenditures of $0.5 million for the three months ended September 30, 2019. Questor will continue to commit capital to grow a presence in regions where producers are looking for high performing, cost-effective technologies to manage their waste gas and fugitive emissions. The Company has substantially completed the 2019 – $7 million Capital Expenditure program. The balance of the capital investment in 2019 will be focused towards the development of the Emissions Excellence Control Center.

NINE MONTHS ENDED SEPTEMBER 30, 2019

  • Revenue increased $5.9 million (34%) during the nine months ended September 30, 2019 versus the same period of 2018:

    — Equipment sales during the nine months ended September 30, 2019 increased $4.7 million versus the same period of 2018. The Company previously announced that it was awarded two contracts to supply clean combustion incineration technology with power generation equipment at three oil and gas processing facilities and supply clean combustion incineration technology to ten production sites in Mexico comprising a total project award amount of $8.2 million. During the nine months ended September 30, 2019, the Company achieved certain contract milestones and has recognized $5.9 million of sales revenue related to the two contracts.

    The Company also sold clean combustion incineration technology to a client in Alberta, North East BC, and Texas during the nine months ended September 30, 2019.

    — Revenue from incinerators rentals increased $1.2 million (10%) from $12 million to $ 13.2 million. The increased customer base in North Dakota is the primary driver of the rental revenue increase.

  • Gross profit increased $2.0 million on a revenue increase of $5.9 million.  Gross margin performance remains strong even after consideration of pricing incentives offered to clients in North Dakota and additional costs incurred on the Mexico project.
     
  • General and administrative expenses were 14.5 percent of revenue for the nine months ended September 30, 2019 versus 15.8 percent for the same period of 2018. The Company expects that general and administrative expenses as a percentage of revenue will remain relatively consistent as the Company will be adding resources to meet its growth objectives.
     
  • The Company incurred $0.6MM of legal expenses for the nine months ended September 30, 2019 related to intellectual property litigation. The Company is the plaintiff and is taking action to protect and enforce certain intellectual property rights. The Company expects the litigation will result in the Company holding rights to patent pending technology developed by the Company.
     
  • Earnings increased $0.2 million (12.7%) during the nine months ended September 30, 2019 versus the same period of 2018.
     
  • The Company continues to expand its incinerator rental fleet, incurring capital expenditures of $6.2 million for the nine months ended September 30, 2019. Questor will continue to commit capital to grow a presence in regions where producers are looking for high performing, cost-effective technologies to manage their waste gas and fugitive emissions.
     
  • Cash balances increased to $10.2 million at September 30, 2018 as compared to $4.9 million at September 30, 2018.
     
  • The Company has in place an Operating and Capital Loan Facility. No amounts have been drawn on the debt facilities.

ABOUT QUESTOR TECHNOLOGY INC.

Headquartered in Calgary, Alberta, Questor has a trained workforce who provide specialized waste gas incineration products and services that may be required for the exploration, development and production of oil and gas reserves.

There are a number of methods for handling waste gases at upstream oil and gas facilities, the most common being combustion. Flaring and incineration are two methods of combustion accepted by the majority of provincial and state regulators. Historically, the most common type of combustion has been flaring. Flaring is the igniting of natural gas at the end of a flare stack—a long metal tube up which the gas is sent. This causes the characteristic flame associated with flaring.

Incineration is the mixing and combusting of waste gas streams, air, and fuel in an enclosed chamber. Air and gas are mixed at a controlled rate and ignited. No flame is visible from an incinerator that is operating properly. Properly designed incinerators can result in higher combustion efficiency than flares. A correctly operated incinerator can yield higher efficiencies through proper mixing, gas composition, retention time, and combustion temperature. Combustion efficiency, generally expressed as a percentage, is essentially the amount of methane converted to CO2, or H2S converted to SO2. The more converted, the better the efficiency.

Questor designs, manufactures and services proprietary high efficiency waste gas incineration systems.  The Company’s incineration product line is based on clean combustion technology that was developed by the Company and patented in both Canada and the United States in 1999. Questor has continued to evolve the technology over the years making a number of improvements from the original patent. The Company currently has five new patent filings that are currently pending. The original clean combustions patent expires in November 2019. 

Questor’s highly specialized technical team works with the client to understand the waste gas volume and composition.  The Company’s technical team determines the specific incineration product specification to achieve 99.99 percent combustion efficiency. The incinerators vary in size to accommodate small to large amounts of gas handling, the range is 50 mcf/d to 5,000 mcf/d. The incinerators also range in automation and instrumentation depending on the client’s requirements. Questor’s incinerators are used in multiple segments of the Oil and Gas industry including: drilling, completions, production and downstream. 

The Company has three primary revenue streams; incinerator sales, incinerator rentals and incinerator services. Incinerator services include incinerator hauling, commissioning, repairs, maintenance and decommissioning. The Company offers incinerator products for purchase or for rent.  Questor’s current key incineration markets are Colorado, North Dakota, Mexico, Pennsylvania, Texas and North East BC. The United States Environmental Protection Agency (EPA) issued regulations to reduce harmful air pollution arising out of crude oil and natural gas industry activities with a particular focus on the efficient destruction of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) and has recently introduced methane emission reduction legislation.  In conjunction with U.S. Environmental Protection Agency (EPA) regulations, Colorado’s Regulation 7 mandates the use of enclosed combustion (incinerators) and now targets methane, resulting in a statewide focus on the responsible management of potentially fugitive hydrocarbons. North Dakota also has additional requirements that reflect some of the unique and specific needs that extend beyond the EPA’s requirements. At September 30, 2019, over 90% of the Company’s incinerator rental fleet is located in Colorado and North Dakota where regulation supports demand for its proprietary high efficiency waste gas incineration systems.

The Company services its key markets with field offices in Brighton and Fort Lupton, Colorado; Watford City, North Dakota and Grande Prairie, Alberta. The infrastructure at the field offices consist of field technicians, maintenance technicians and administration. The facilities generally include, office space, maintenance shop and a yard to store incinerators. Questor personnel based out of the Company’s head office in Calgary, Alberta include Officers of the Corporation, management, engineering, technical sales, accounting and administration.

Questor trades on the TSX Venture Exchange under the symbol ‘QST’.

Audrey Mascarenhas
President and Chief Executive Officer
                          Dan Zivkusic
Chief Financial Officer
Phone:
Facsimile:
Email:
    (403) 571-1530
(403) 571-1539
amascarenhas@questortech.com
  Phone:
Facsimile:
Email:
    (403) 539-4371
(403) 571-1539
dzivkusic@questortech.com
             

Certain information in this news release constitutes forward-looking statements. When used in this news release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve 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. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This document is not intended for dissemination or distribution in the United States.

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Opera Limited announces third quarter 2019 financial results

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  • Revenue of $93.7 million, growth accelerating to 119% year-over-year; exceeding the top end of Opera’s guidance range
  • Monthly active users averaging 232 million for smartphone (up 18% YoY) and 68 million for PC (up 16% YoY)
  • Opera News users grew 39% to over 169 million monthly active users year-over-year; dedicated news app increased to 41 million monthly active users
  • Opera’s microlending business more than tripled revenue versus the second quarter; driven by 5M loans totaling more than $250 million in total loan value
  • OList, our recently launched classifieds offering, reached 1 million listings within three months of launch
  • Net income of $28.1 million, supported by a non-cash OPay valuation gain
  • Adjusted EBITDA of $12.6 million, representing significant margin expansion versus the prior quarter
  • Raising 2019 revenue guidance range to $300 to $310 million, representing 77% growth at the midpoint versus 2018

OSLO, Norway, Nov. 14, 2019 (GLOBE NEWSWIRE) — 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 quarter ended September 30, 2019.

 
Third quarter 2019 financial highlights
 
    Three Months Ended September 30,     Year-over-     Nine Months Ended September 30,     Year-over-  
[US$ thousands, except for margins and per ADS amounts]   2018     2019     year %
change 
    2018     2019     year %
change 
 
Revenue     42,795       93,678       118.9 %     122,069       205,245       68.1 %
                                                 
Net income (loss)     9,717       28,120       189.4 %     23,747       35,923       51.3 %
Margin     22.7 %     30.0 %             19.5 %     17.5 %        
                                                 
Adjusted EBITDA (1)     16,495       12,647       -23.3 %     48,283       25,305       -47.6 %
Margin     38.5 %     13.5 %             39.6 %     12.3 %        
                                                 
Adjusted net income (1)     12,494       30,578       144.7 %     33,151       43,188       30.3 %
Margin     29.2 %     32.6 %             27.2 %     21.0 %        
                                                 
Diluted net income per ADS, US$     0.09       0.25       176.6 %     0.23       0.32       36.6 %
                                                 
Diluted adjusted net income per ADS, US$ (1)     0.11       0.27       146.1 %     0.33       0.38       16.4 %

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

Frode Jacobsen, Opera’s CFO, said, “We are pleased with our third quarter results delivering accelerated revenue growth year-over-year and positive momentum throughout the business. We are successfully leveraging our well-known brand and large user base of more than 350 million monthly active users to drive growth in new opportunities beyond the browser, including news and content, fintech and classifieds. Our new initiatives, strategic investments and the continued growth of our browser, led to an accelerating growth trajectory with 119% year-over-year revenue growth.

“Our third quarter revenue growth was driven by strong results in both advertising and search revenues and more than a tripling of microlending revenue versus the second quarter, driven by rapid scaling in India and continued success in Kenya. Adjusted EBITDA margins expanded meaningfully versus the prior quarter, while we continued to invest aggressively in existing and future growth initiatives.”

Third quarter 2019 user base and product highlights
(All comparisons are relative to the third quarter of 2018 unless otherwise stated)

  • Opera News average Monthly Active Users (“MAUs”) grew 39% to 169 million
  • The Opera News app, launched in January 2018, reached 41 million average MAUs, up 136% on year-over-year basis
  • Total smartphone average MAUs grew 18% to 232 million
  • PC average MAUs grew 16% to 68 million
  • Provided 4.9 million microloans in the quarter with a total value of $250 million, up from 1.8 million microloans and $70 million value in the second quarter

Lin Song, Opera’s COO, said, “We are pleased with our strong third quarter results across all of our key metrics. We maintain a robust user growth trajectory while utilizing our scale to launch new products and further expand our market opportunity.

“Opera News continues to scale, with MAUs of our news app increasing 136% year-over-year to 41 million in the third quarter. We remain focused on driving user growth and increasing engagement through improved product quality and adding hyperlocal content on the platform. This includes the launch of Opera News Hub, a platform which allows content creators to publish and monetize through Opera News, which has already signed on 500 key opinion leaders. We continue to make progress monetizing our dedicated news app, with revenue up 44% versus the prior quarter.

“Opera Ads, our direct selling platform is evolving and expanding its capabilities. We are reaching an increasing number of both large businesses and small to medium sized enterprises which led to an increase in advertising revenue. Additionally, we launched OLeads, a product aimed at helping the tens of millions of small and medium enterprises in Nigeria grow and market their businesses online.

“Olist, our classified offering in Nigeria is progressing well. Listings have more than doubled to over 1 million from three months ago. We are focusing on growing listings and driving consumer awareness. We believe the potential in this area is very interesting, both in terms of advertising, but also from taking part in the underlying transactions through fee based models.

“On the browser side, our focus on product differentiation has led to continued growth with PC users up 16% year-over-year as we remain focused on privacy and security functionality, and supported by the continued success of Opera GX, our web browser tailored for gamers. Our smartphone user base also continued to grow during the quarter, as we launched offline file sharing in our Opera Mini browser that enables users to share content without using their mobile data or being limited by a slow network connection. The recent launch of our new tracker blocker is shown to speed up mobile browser speed by almost 20%.”

Business outlook

Mr. Frode Jacobsen, Opera’s CFO, said, “In light of the success we achieved during the third quarter of 2019, we are again raising our full-year revenue expectations. We now expect 77% revenue growth at the midpoint of our 2019 guidance. This view includes further growth in our microlending business and continued scaling of our advertising business. We expect our newest initiatives, including OList and additional fintech efforts, to be more of a factor in 2020. Further, we are increasing the lower end of our 2019 Adjusted EBITDA guidance. This reflects further margin expansion in the fourth quarter, while continuing to make aggressive investments in both existing and new initiatives aimed at driving strong multi-year growth.”

As a result, Opera expects fourth quarter and full year 2019 revenue and adjusted EBITDA to be in the following ranges:

Fourth Quarter:

  • Revenue of $95 – $105 million, or 89 – 109% growth versus the fourth quarter of 2018, driven by fintech revenue and to a lesser extent growth in advertising and search revenue. This growth will be offset by an expected significant decline in technology licensing revenue
  • Adjusted EBITDA of $15 – $19 million, representing margin expansion versus the third quarter

Full Year:

  • Revenue of $300 – $310 million, or 74 – 80% growth year-over-year, an increase from our previous guidance of $270 – $290 million
  • Adjusted EBITDA of $41 – $45 million

Third quarter 2019 consolidated financial results

All comparisons in this section are relative to the third quarter of 2018 unless otherwise stated.

Revenue increased 119% to $93.7 million.

  • Search revenue increased 13% to $21.5 million, primarily due to smartphone and PC browser growth.
  • Advertising revenue increased 17% to $18.3 million, due to an increase in both smartphone and PC users and continued monetization improvements.
  • Fintech revenue was $39.9 million. This revenue tripled versus the prior quarter due to rapidly scaling India and continued growth in Kenya.
  • Retail revenue was $6.0 million versus $2.9 million in the third quarter of 2018.
  • Technology licensing and other revenue was $7.9 million. This was higher than expected due to non-recurring incremental low margin revenue relating to investee support.

Operating expenses increased 181% to $87.0 million.

  • Cost of revenue was $15.0 million, compared to $10.1 million in the second quarter of 2019. Within the total, $6.0 million related to retail revenue, $8.8 million related to microlending and $0.2 million related to the browser and news business area.
  • Personnel expenses including share-based remuneration were $19.5 million, a 108% increase. This expense consists of cash-based compensation expense of $18.0 million, and $1.5 million of share-based remuneration expense. The increase included approximately $4.0 million of short-term elevated compensation cost relating to investee support, and some staff increases mainly related to Opera News, Opera Ads, microlending and other growth initiatives.
  • Marketing and distribution expenses were $20.0 million, an increase of 160% following our previously announced efforts to further invest in accelerating our growth in 2019.
  • Credit loss expense was $19.6 million, including $20.0 million related to microlending which was partially offset by a $0.4 million reduction in credit loss provision within the browser and news segment.
  • Depreciation and amortization expenses were $4.5 million, a 48% increase. The increase is largely the result of the adoption of IFRS 16 on January 1, 2019.
  • Other operating expenses were $8.3 million, a 19% increase.

Operating profit was $6.7 million, representing an operating margin of 7%, compared to $11.8 million and a 27% margin in the year-ago quarter. The decline was largely due to the increased investment in marketing and distribution activities and increased headcount associated with our growth initiatives.

Share of net income of associates and joint ventures amounted to $23.3 million, including a non-cash gain from the increased OPay valuation in connection with the company’s recent funding round.

Income tax expense was $1.7 million, compared to an expense of $1.0 million in the year-ago quarter.

Net income was $28.1 million, compared to $9.7 million in the third quarter of 2018.

Net income per ADS was $0.25 in the quarter, and $0.25 on a diluted basis.

Adjusted net income per ADS was $0.28 in the quarter, and $0.27 on a diluted basis. Each ADS represents two shares in Opera Limited. In the quarter, the average number of shares outstanding was 221.6 million, corresponding to 110.8 million ADSs. Note that the third quarter only includes 1.0 million impact of the 7.5 million new ADSs issued as part of the company’s follow-on offering. An additional 1.1 million new ADSs were issued in October related to the underwriters’ execution of the over-allotment option.

Adjusted EBITDA was $12.6 million, representing a 13% adjusted EBITDA margin, compared to $16.5 million in third quarter 2018. Adjusted EBITDA excludes share-based remuneration.

Adjusted Net Income was $30.6 million in the quarter, representing a 33% adjusted net margin compared to $12.5 million in third quarter 2018. Adjusted net income excludes share-based remuneration and amortization of intangible assets related to acquisitions (all of which relates to the Opera privatization in 2016). Adjusted net income further includes partially offsetting reversals of the tax impacts of the foregoing adjustments.

Other highlights included a follow-on public offering of 8.6 million American Depositary Shares (ADS), raising a total of $82.6 million net of underwriting discounts and commissions. The initial offering of 7.5 ADSs was completed on September 24th and the underwriters’ execution of the over-allotment option of 1.1 million ADSs was completed on October 16th.

Conference call

Opera’s management team will host a conference call from Lagos, Nigeria at 8:00 AM U.S. Eastern Time (2:00 PM Central European Time, 9:00 PM Beijing/Hong Kong time) on Thursday, November 14, 2019.

The dial-in details for the live conference call are:
United States: +1 (877) 506-7703
China: +86 400 682 8609
Hong Kong: +852 5819 4851
Norway: +47 239 64173
United Kingdom: +44 (0)203 107 0289
International: +1 (786) 815-8450
Confirmation Code: 7235635

A live webcast of the conference call will be posted at https://investor.opera.com.

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, 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 associates and joint ventures, restructuring costs, depreciation and amortization, share-based remuneration and expensed costs related to our recent initial public offering, less other income.

We define adjusted net income as net income excluding share-based remuneration, amortization of acquired intangible assets, and expensed costs related to our recent initial public offering.

We believe that adjusted EBITDA and adjusted net income provides 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,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Opera and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its goals and strategies; its expected development and launch, and market acceptance, of its products and services; its expectations regarding demand for and market acceptance of our brand, platforms and services; our expectations regarding growth in our user base and level of engagement; its ability to attract, retain and monetize users; its ability to continue to develop new technologies and/or upgrade our existing technologies and quarterly variations in its operating results caused by factors beyond its control and global macroeconomic conditions and its potential impact in the markets it has businesses. All information provided in this press release is as of the date hereof, and Opera 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 Opera 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 Opera’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

About Opera

Opera is a leading global internet brand with an engaged and growing base of over 350 million average monthly active users. Building on over 20 years of innovation, starting with our browser products, we are increasingly leveraging our brand as well as our massive and highly active user base in order to expand our offerings and our business. Today, we offer users across Europe, Africa and Asia a range of products and services that include our PC and mobile browsers as well as our AI-powered news reader Opera News and our app-based microfinance solutions.

 
OPERA LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
    Three Months Ended September 30,     Nine Months Ended September 30,  
[US$ thousands, except per share and ADS amounts]   2018     2019     2018     2019  
Revenue     42,795       93,678       122,069       205,245  
                                 
Operating expenses                                
Cost of revenue     (3,663 )     (15,023 )     (5,741 )     (32,906 )
Personnel expenses including share-based remuneration     (9,378 )     (19,495 )     (29,844 )     (46,180 )
Marketing and distribution expenses     (7,709 )     (20,029 )     (22,885 )     (55,799 )
Credit loss expense     (162 )     (19,641 )     167       (27,274 )
Depreciation and amortization     (3,051 )     (4,511 )     (9,817 )     (12,934 )
Other expenses     (6,992 )     (8,326 )     (21,862 )     (22,236 )
Total operating expenses     (30,954 )     (87,026 )     (89,982 )     (197,329 )
                                 
Operating profit (loss)     11,841       6,652       32,086       7,917  
                                 
Share of net income (loss) of associates and joint ventures     (1,757 )     23,295       (3,381 )     26,252  
                                 
Net finance income (expense)                                
Finance income     629       611       827       3,970  
Finance expense     (54 )     (222 )     (131 )     (548 )
Net foreign exchange gain (loss)     28       (539 )     140       (693 )
Net finance income (expense)     603       (151 )     836       2,728  
                                 
Net income (loss) before income taxes     10,687       29,797       29,541       36,897  
Income tax (expense) benefit     (970 )     (1,677 )     (5,794 )     (974 )
Net income (loss)     9,717       28,120       23,747       35,923  
                                 
Net income (loss) attributable to:                                
Equity holders of the parent     9,717       28,120       23,747       35,923  
Non-controlling interests                        
Total net income (loss) attributed     9,717       28,120       23,747       35,923  
                                 
Weighted average number of ordinary shares outstanding                                
Basic, millions(1)     209.99       221.55       196.83       220.31  
Diluted, millions(2)     216.82       225.89       202.92       224.83  
                                 
Net income (loss) per ordinary share                                
Basic, US$     0.05       0.13       0.12       0.16  
Diluted, US$     0.05       0.12       0.12       0.16  
                                 
Net income (loss) per ADS                                
Basic, US$     0.09       0.25       0.24       0.33  
Diluted, US$     0.09       0.25       0.23       0.32  
(1) Assuming 200 million shares in Opera Limited were outstanding for all periods presented prior to the Initial Public Offering (IPO), less 9.75 million shares that were surrendered by two shareholders upon completion of the IPO. As of September 30, 2019, the total number of shares outstanding for Opera Limited was 235,576,326, equivalent to 117,788,163 ADSs.
 
(2) Includes the net dilutive impact of employee equity awards, all of which are dilutive.
 
OPERA LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
 
    Three Months Ended September 30,     Nine Months Ended September 30,  
[US$ thousands]   2018     2019     2018     2019  
Net income (loss)     9,717       28,120       23,747       35,923  
                                 
Other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods (net of tax)                                
Exchange differences on translation of foreign operations     (177 )     (1,982 )     (1,273 )     (2,092 )
Reclassification of exchange differences on loss of control                 (138 )     7  
Share of other comprehensive income (loss) of associates and joint ventures                       (41 )
Net other comprehensive income (loss) that may be reclassified to the Statement of Operations in subsequent periods     (177 )     (1,982 )     (1,411 )     (2,126 )
Total comprehensive income (loss)     9,541       26,139       22,336       33,797  
                                 
Total comprehensive income (loss) attributable to:                                
Equity holders of the parent     9,541       26,139       22,336       33,797  
Non-controlling interests                        
Total comprehensive income (loss) attributed     9,541       26,139       22,336       33,797  
OPERA LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 
    As of December
31,
    As of September
30,
 
[US$ thousands]   2018     2019  
ASSETS                
Non-current assets                
Furniture, fixtures and equipment     12,162       27,689  
Intangible assets     115,444       112,355  
Goodwill     421,578       421,578  
Investments in associates and joint ventures     35,060       67,560  
Non-current financial assets     2,025       2,689  
Deferred tax assets     944        
Total non-current assets     587,213       631,870  
                 
Current assets                
Trade receivables     37,468       47,983  
Loans to customers     3,092       55,508  
Other receivables     4,031       3,931  
Prepayments     14,372       26,857  
Inventories           1,932  
Other current financial assets     89        
Marketable securities     1,165       45,253  
Cash and cash equivalents     177,873       170,697  
Total cash, cash equivalents, and marketable securities     179,038       215,950  
Total current assets     238,090       352,161  
TOTAL ASSETS     825,303       984,031  
                 
                 
EQUITY AND LIABILITIES                
Equity                
Share capital     22       24  
Other paid in capital     738,690       803,896  
Retained earnings     36,432       76,044  
Foreign currency translation reserve     316       (1,810 )
Equity attributed to equity holders of the parent     775,460       878,154  
Non-controlling interests            
Total equity     775,460       878,154  
                 
Non-current liabilities                
Non-current lease liabilities and other loans     2,271       9,750  
Deferred tax liabilities     13,358       13,654  
Other non-current liabilities     212       130  
Total non-current liabilities     15,841       23,534  
                 
Current liabilities                
Trade and other payables     17,957       41,542  
Current lease liabilities and other loans     2,490       26,471  
Income tax payable     1,920       1,700  
Deferred revenue     1,932       1,159  
Other current liabilities     9,701       11,471  
Total current liabilities     34,002       82,343  
                 
Total liabilities     49,843       105,877  
TOTAL EQUITY AND LIABILITIES     825,303       984,031  
 
OPERA LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 
[US$ thousands]   Share capital (1)     Other paid
in

capital (1)
    Retained
earnings
    Foreign
currency
translation
reserve
    Total equity  
As of December 31, 2017, as previously reported     19       576,512       5,366       1,605       583,503  
Impact of new accounting standards                 (629 )           (629 )
As of January 1, 2018, restated     19       576,512       4,737       1,605       582,874  
Net income (loss)                 23,747             23,747  
Other comprehensive income (loss)                       (1,411 )     (1,411 )
Total comprehensive income (loss)                 23,747       (1,411 )     22,336  
Contribution of equity, net of transaction costs     3       167,153                   167,156  
Share-based remuneration expense                 4,638             4,638  
As of September 30, 2018     22       743,665       33,122       194       777,003  
[US$ thousands]   Share capital (1)     Other paid
in

capital (1)
    Retained
earnings
    Foreign
currency
translation
reserve
    Total equity  
As of December 31, 2018     22       738,690       36,432       316       775,460  
Impact of implementing IFRS 16 Leases                 64             64  
As of January 1, 2019, restated     22       738,690       36,496       316       775,524  
Net income (loss)                 35,923             35,923  
Other comprehensive income (loss)                       (2,126 )     (2,126 )
Total comprehensive income (loss)                 35,923       (2,126 )     33,797  
Contribution of equity, net of transaction costs     2       70,986                   70,988  
Acquisition of treasury shares           (5,780 )                 (5,780 )
Share-based remuneration expense                 3,624             3,624  
As of September 30, 2019     24       803,896       76,044       (1,810 )     878,154  
(1) The amounts of share capital and other paid in capital have been amended by reclassifying amounts between the two equity components.
 
OPERA LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
[US$ thousands]   2018     2019     2018     2019  
                                 
Net cash flow from (used in) operating activities     6,820       (17,539 )     21,713       (24,460 )
Net cash flow from (used in) investing activities     (2,426 )     (35,311 )     (3,713 )     (62,794 )
Net cash flow from (used in) financing activities     169,463       90,206       167,117       81,041  
                                 
Net change in cash and cash equivalents     173,857       37,356       185,118       (6,213 )
                                 
Cash and cash equivalents at beginning of period     43,993       134,155       33,207       177,873  
Net foreign exchange difference     (209 )     (813 )     (682 )     (962 )
Cash and cash equivalents at end of period     217,642       170,697       217,642       170,697  
 
Financial details by business area
 
The tables below specify the contribution by each business area:
 
[US$ thousands]   Three months ended September 30, 2018  
Business area   Browser and News     Fintech     Retail     Other     Total  
Revenue categories                                        
Search     19,130                         19,130  
Advertising     15,679                         15,679  
Origination fees and interest                              
Airtime and handsets                 2,871             2,871  
Technology licensing and other revenue                       5,116       5,116  
Total revenue     34,809             2,871       5,116       42,795  
                                         
Cost of revenue     (672 )           (2,991 )           (3,663 )
Marketing and distribution expenses     (7,709 )                       (7,709 )
Credit loss expense     (162 )                       (162 )
Direct expenses     (8,543 )           (2,991 )           (11,534 )
                                         
Contribution by business area     26,266             (120 )     5,116       31,262  
[US$ thousands]   Three months ended September 30, 2019  
Business area   Browser and News     Fintech     Retail     Other     Total  
Revenue categories                                        
Search     21,527                         21,527  
Advertising     18,349                         18,349  
Origination fees and interest           39,858                   39,858  
Airtime and handsets                 6,006             6,006  
Technology licensing and other revenue                       7,937       7,937  
Total revenue     39,876       39,858       6,006       7,937       93,678  
                                         
Cost of revenue     (207 )     (8,797 )     (6,019 )           (15,023 )
Marketing and distribution expenses     (16,831 )     (3,198 )                 (20,029 )
Credit loss expense     345       (19,986 )                 (19,641 )
Direct expenses     (16,693 )     (31,981 )     (6,019 )           (54,693 )
                                         
Contribution by business area     23,183       7,877       (13 )     7,937       38,985  
[US$ thousands]   Nine months ended September 30, 2018  
Business area   Browser and News     Fintech     Retail     Other     Total  
Revenue categories                                        
Search     59,115                         59,115  
Advertising     42,312                         42,312  
Origination fees and interest                              
Airtime and handsets                 2,871             2,871  
Technology licensing and other revenue                       17,771       17,771  
Total revenue     101,427             2,871       17,771       122,069  
                                         
Cost of revenue     (2,750 )           (2,991 )           (5,741 )
Marketing and distribution expenses     (22,885 )                       (22,885 )
Credit loss expense     167                         167  
Direct expenses     (25,468 )           (2,991 )           (28,459 )
                                         
Contribution by business area     75,959             (120 )     17,771       93,610  
[US$ thousands]   Nine months ended September 30, 2019  
Business area   Browser and News     Fintech     Retail     Other     Total  
Revenue categories                                        
Search     63,514                         63,514  
Advertising     48,649                         48,649  
Origination fees and interest           56,466                   56,466  
Airtime and handsets                 20,471             20,471  
Technology licensing and other revenue                       16,145       16,145  
Total revenue     112,163       56,466       20,471       16,145       205,245  
                                         
Cost of revenue     (1,420 )     (11,058 )     (20,428 )           (32,906 )
Marketing and distribution expenses     (51,730 )     (4,069 )                   (55,799 )
Credit loss expense     (200 )     (27,074 )                 (27,274 )
Direct expenses     (53,350 )     (42,201 )     (20,428 )           (115,979 )
                                         
Contribution by business area     58,813       14,265       43       16,145       89,266  
Personnel expenses including share-based remuneration
The table below specifies the amounts of personnel expenses including share-based remuneration:
 
[US$ thousands]   Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
Personnel expenses including share-based remuneration   2018     2019     2018     2019  
Personnel expenses excluding share-based remuneration     8,617       18,012       26,416       41,726  
Share-based remuneration, including related social security costs     761       1,483       3,427       4,454  
Total     9,378       19,495       29,844       46,180  
Other expenses
 
The table below specifies the nature of other expenses:
 
[US$ thousands]   Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
Other expenses   2018     2019     2018     2019  
Hosting     2,470       1,879       7,649       5,278  
Audit, legal and other advisory services     1,865       2,122       6,743       6,093  
Software license fees     356       494       1,248       1,789  
Rent and other office expense     1,032       1,553       3,368       3,917  
Travel     540       1,017       1,570       2,401  
Other     729       1,262       1,284       2,757  
Total     6,992       8,326       21,862       22,236  
 
Non-IFRS financial measures 
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
[US$ thousands, except per share and ADS amounts]   2018     2019     2018     2019  
Reconciliation of net income (loss) to adjusted EBITDA                                
Net income (loss)     9,717       28,120       23,747       35,923  
Add: Income tax expense (benefit)     970       1,677       5,794       974  
Add: Net finance expense (income)     (603 )     151       (836 )     (2,728 )
Add: Share of net loss (income) of associates and joint ventures     1,757       (23,295 )     3,381       (26,252 )
Add: Depreciation and amortization     3,051       4,511       9,817       12,934  
Add: Share-based remuneration     761       1,483       3,427       4,454  
Add: Expensed IPO related costs     843             2,952        
Adjusted EBITDA     16,495       12,647       48,283       25,305  
                                 
Reconciliation of net income (loss) to adjusted net income                                
Net Income (loss)     9,717       28,120       23,747       35,923  
Add: Share-based remuneration     761       1,483       3,427       4,454  
Add: Amortization of acquired intangible assets     1,280       1,280       3,840       3,840  
Add: Expensed IPO related costs     843             2,952        
Income tax adjustment (1)     (106 )     (305 )     (816 )     (1,029 )
Adjusted net income     12,494       30,578       33,151       43,188  
                                 
Weighted average number of ordinary shares outstanding                                
Basic, millions     209.99       221.55       196.83       220.31  
Diluted, millions     216.82       225.89       202.92       224.83  
                                 
Adjusted net income (loss) per ordinary share                                
Basic, US$     0.06       0.14       0.17       0.20  
Diluted, US$     0.06       0.14       0.16       0.19  
                                 
Adjusted net income (loss) per ADS                                
Basic, US$     0.11       0.28       0.34       0.39  
Diluted, US$     0.11       0.27       0.33       0.38  
(1) Reversal of tax benefit related to the social security cost component of share-based remuneration, deferred taxes on the amortization of acquired intangible assets, and expensed IPO-related costs. 
Investor Relations Contact: Derrick Nueman or (408) 596-3055 For media enquiries, please contact:

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