Avast plc (LON:AVST), together with its subsidiaries, a leading global cybersecurity provider, issues the following scheduled trading update for the first quarter of its current financial year, comprising the period from 1 January 2019 to 31 March 2019.
Financial Summary
|
($’m) |
Q1 2019 |
Q1 2018 |
Change % |
Change % (excluding FX) 1 |
|
Adjusted Revenue |
211.8 |
199.6 |
6.1 |
6.7 |
|
Adjusted Revenue excl. Discontinued Business and sale of Managed Workplace 2,3 |
209.1 |
192.7 |
8.5 |
9.1 |
For the first quarter, Adjusted Revenue rose by 9.1% excluding FX, Discontinued Business and the sale of Managed Workplace, and 8.5% in actual rates, to $209.1m. Adjusted Billings grew slightly ahead of revenue.
For the first quarter, Adjusted EBITDA increased 5.4% to $117.5m, resulting in an Adjusted EBITDA margin of 55.5%4.
In March, the Group voluntarily paid down US$200m of debt using cash on the balance sheet. At 31 March 2019, net debt / LTM (“last twelve months”) Adjusted EBITDA per banking covenant was 2.4x and net debt / Adjusted Cash EBITDA was 2.3x 5, in line with our expectations.
Vince Steckler, Chief Executive of Avast, commented:
“We have started the year well. Our first quarter performance has been strong, continuing the trading momentum seen in the second half of 2018.
“The Group’s cost-effective user acquisition model and large, global user base of more than 435m users remain key competitive strengths for the business. Our market-leading levels of profitability and strong cash generation mean we continue to execute our growth strategy with confidence, and Group expectations for the full year remain unchanged.”
Outlook
The Group reaffirms its FY 2019 outlook for high single digit Adjusted Revenue growth, excluding FX, Discontinued Business and the sale of Managed Workplace, and broadly flat Adjusted EBITDA margin% (pre-IFRS 16 adoption).
Avast intends to report Half Year results for the six months to 30 June 2019 on Wednesday 14 August 2019.
