Opera Software admits weak third quarter for mobile advertising following sale of its Opera TV unit

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Opera Software has announced weaker performance across its mobile ad business. The company just recently announced the sale of a majority stake in Opera TV to tech investment firm Moore Freres & Co, for $80m in cash and shares equivalent to 30% of Opera TV.

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In addition, the company sold its consumer business to Golden Brick Capital Private Equity in a deal worth $575m earlier this year. An earlier proposal to sell the whole company had fallen through.

Following the transaction, Opera provided a trading update in which it said that the mobile ad business had lost some tailwind during the third quarter 2016.

Opera predicts that the first quarter of 2017 may be rather soft compared to 2016.

Lars Boilesen, CEO, Opera Software told Reuters:

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“Now we have to focus on developing the four companies we have left, that is the only strategy we have.”

Overall, the company is confident that it can turn a positive performance in 2017 through further investments in products, particularly its SDK, as well as Core update, AI products and data science.