Opera's $300M stock buyback plan sends shares soaring 20% after record revenue growth
Opera, Ltd. has unveiled a $300 million share repurchase plan, equal to 22% of its current stock market value. The announcement came as the company reported strong financial results, including a 26% rise in revenue per user. Shares jumped by over 20% following the news.
Opera's latest financial report showed a 22% increase in revenue, reaching $177.2 million for the fourth quarter. Adjusted earnings per share also climbed by 9%, hitting $0.30. The company attributed part of this growth to a strategy focused on attracting higher-paying users in Western markets.
The number of Western users rose by 2 million, bringing the total to 60 million. This shift helped push average revenue per user (ARPU) up by 26% year-over-year, reaching $2.49. Management now expects full-year revenue to grow between 17% and 20%, with stable profit margins.
Opera currently holds $155 million in cash and carries no debt. The company also pays a dividend with a yield of 6.4% at the latest stock market price. Its market capitalisation stands at roughly 1.15 billion euros (about 1.24 billion USD), though its share price has fallen by 37.69% over the past year.
The $300 million buyback programme signals confidence in Opera's financial position. With steady revenue growth and a focus on higher-value users, the company aims to strengthen shareholder returns. Trading on the NYSE since 2018, Opera continues to expand despite broader stock market fluctuations.
