Opera, the software giant known for its browser and Opera News platform, has shared its financial results for the fourth quarter of 2020, showcasing significant growth and expansion efforts. The company reported $50.4 million in revenue for the quarter, marking a 19% increase from the $42.4 million recorded in Q3. This growth was largely attributed to its search and advertising business, which contributed $48.9 million.
Opera’s ability to monetize its platforms effectively is linked to its rapidly growing user base, which expanded by 29 million in 2020. Among its innovative products is Opera GX, a browser tailored for gamers, which has amassed over 7 million users. This success has bolstered its advertising revenue, which grew from $19 million in Q3 to $23 million in Q4.
Introduction of Dify, a New Digital Wallet
Opera is venturing into new revenue streams with the launch of Dify, an integrated digital wallet designed to enhance the online shopping experience for its browser users. According to Co-CEO Lin Song, Dify offers cashback rewards for purchases from over 300 partner merchants, aiming to drive user adoption and streamline online payments. Opera sees Dify as a crucial addition to its ecosystem, leveraging its existing user base to scale the product.
Opera News and Global Expansion
Opera News, a dominant platform in Africa, contributes significantly to the company’s estimated 200 million users in emerging markets. Recently, Opera extended its reach to more developed markets, with promising initial results. Lin Song emphasized that this expansion is aimed at building a broader content ecosystem, expecting it to significantly boost revenue in the coming year despite initial marketing and acquisition costs.
OPay’s Growing Influence in Fintech
Opera’s 13.1% stake in OPay, a Nigerian fintech startup, continues to deliver promising results. Chief Financial Officer Frode Jacobsen highlighted OPay’s rapid revenue growth, nearing profitability while scaling operations in Nigeria and planning to expand into another African country.
OPay’s transaction volumes reflect this growth trajectory. In October 2020, it reported a gross transaction value of $1.4 billion. By December, this figure surged to $2 billion, representing a remarkable 43% growth in just two months. Although independent verification of these figures remains unavailable, OPay’s market share reportedly accounts for around 70%, according to industry reports.
As OPay expands into new markets and attracts more users, its performance in early 2021 is anticipated to further bolster Opera’s investment portfolio. This trajectory underscores Opera’s strategic focus on leveraging fintech innovations alongside its core businesses to drive sustained growth.
