Norwegian software maker Opera announced Thursday that it has signed a deal with Microsoft to take over the company's Nokia mobile phone unit, making Opera Mini the default browser for Asha models and feature phones.
By signing a licensing deal, Microsoft has given Opera the reins over Nokia's browser building department. Opera Mini will come pre-installed as the default browser for devices running on the Asha, Series 4 and Series 30+ software, while the current user base will be encouraged to switch to the browser. Xpress used to be the default browser for the mentioned devices.
"We continue to sell and support classic first and feature phones as well as the Asha range, which have performed well with millions of people who want new mobile experiences at lower price points. The agreement with Opera will enable us to provide continuity of service as we transition from Xpress Browser to Opera Mini," said Microsoft's head of legacy business for Phones Rich Bernardo.
Opera CEO Lars Boilsesen is also quite excited about the deal, saying the company has dreamed of the opportunity for over 10 years. "The deal will be profitable from the start," he adds.
The deal comes in time for Opera's second quarter earnings statement which reports adjusted earnings before interest, taxes, depreciation and amortization at $27 million, an increase of 24 percent. This figure beats forecasts by analysts which speculated company earnings will be at $24.7 million.
More confident because of a promising deal and stellar quarterly performance, Opera now sees its full-year earnings before interest, taxes, depreciation and amortization anywhere between $117 million and $124 million, rising from an earlier personal forecast of $110 million to $120 million. Expected revenues are also up to between $480 million and $500 million, an increase from $435 million to $460 million as previously set.
Opera's great performance for the quarter and bolstered confidence from the Microsoft deal led company shares to rise by 6.5 percent. However, not all are optimistic about the licensing deal given that Microsoft is planning to cease the production of Asha, Series 40 and Series 30+ phones by 2015.
While Microsoft's plans for included devices may be worrying, the deal will still benefit Opera in the long run because it will expand its user base. Currently, about 250 million people use Opera Mini. Out of that number, 100 million are on Android smartphones.
Update notifications should be sent out to current users by October. Support for transitioning users will be provided by Opera until December 2015.
