Opera’s short-term loan business now accounts for over 42% of the company’s revenue and is responsible for eye-popping top line “growth”.Instead of disclosing to investors that its “high-growth” microfinance segment could be imperiled by these new rules, Opera instead immediately raised $82 million in a secondary offering without disclosing Google’s changes to investors.Given that the vast majority of Opera’s loans are disbursed through Android apps, we think this entire line of business is at risk of disappearing or being severely curtailedwhen Google notices.In August, Google tightened rules to curtail predatory lending and, as a result, Opera’s apps are now in black and white violation of numerous Google rules. Most of Opera’s lending business is operated through apps offered on Google’s Play Store.

Post IPO, Opera has now also made a similar and dramatic pivot into predatory short-term loans in Africa and India, deploying deceptive ‘bait and switch’ tactics to lure in borrowers and charging egregious interest rates ranging from ~365-876%.

and saw its shares plunge more than 80% in just 2 years amid allegations of fraud and illegal lending practices. The group’s largest investor and current Opera Chairman/CEO was recently involved in a Chinese lending business that listed in the U.S.

Opera was purchased by a China-based investor group prior to its IPO.

Opera has swung to negative $12 million in LTM operating cash flow, compared to positive cash flow of $32 million for the comparable 2018 period.

Browser gross margins have collapsed by 22.6% in just one year.

Now, its browser market share is declining rapidly, down ~30% since its IPO.

Opera went public in mid-2018 based largely on prospects for its core browser business.

Opera web browser sree tv app