Avast PLC THIRD QUARTER TRADING UPDATE (3085Q)
October 18 2019 - 2:00AM
UK Regulatory
TIDMAVST
RNS Number : 3085Q
Avast PLC
18 October 2019
AVAST PLC
THIRD QUARTER TRADING UPDATE
18 October 2019
Avast plc, together with its subsidiaries ('Avast' or 'the
Group'), a leading global cybersecurity provider, issues the
following scheduled trading update for the third quarter of its
current financial year, comprising the period from 1 July 2019 to
30 September 2019.
Financial Summary
($'m) Q3 2019 Q3 2018 Change % Change % (excluding FX) (1)
--------------------------------------------------------- -------- -------- --------- ----------------------------
Adjusted Revenue 220.3 209.8 5.0 6.6
Adjusted Revenue excl. Discontinued Business and sale of
Managed Workplace (2,3) 218.3 203.4 7.3 9.0
--------------------------------------------------------- -------- -------- --------- ----------------------------
($'m) 9M 2019 9M 2018 Change % Change % (excluding FX)
------------------------------------------------------------- -------- -------- --------- ------------------------
Adjusted Revenue 647.1 613.1 5.5 6.7
Adjusted Revenue excl. Discontinued Business and sale of
Managed Workplace 640.1 593.0 7.9 9.1
------------------------------------------------------------- -------- -------- --------- ------------------------
For the third quarter, Adjusted Revenue rose by 9.0% excluding
FX, Discontinued Business and the sale of Managed Workplace, and
7.3% in actual rates, to $218.3m. For the year to date, Adjusted
Revenue rose by 9.1% excluding FX, Discontinued Business and the
sale of Managed Workplace, and 7.9% in actual rates, to
$640.1m.
As expected, Adjusted Billings growth in the third quarter was
similar to the 9.0% Adjusted Revenue growth, and consequently was
above Adjusted Revenue growth for the year to date.
For the third quarter, Adjusted EBITDA increased 8.7% to
$121.9m, For the year to date, Adjusted EBITDA increased 6.6% to
$358.5m, resulting in an Adjusted EBITDA margin year to date of
55.4%(4) .
At 30 September 2019, net debt / LTM ("last twelve months")
Adjusted EBITDA per the banking covenant was 1.9x and net debt /
Adjusted Cash EBITDA was 1.8x(5) . Alongside continued strong
organic cash flow, proceeds from the strategic partnership
transaction with Ascential helped accelerate the programme of
deleveraging.
Ondrej Vlcek, Chief Executive of Avast, said:
"I'm pleased to report that Avast has delivered good growth in
the third quarter, consistent with our expectations at the time of
the Half Year Results in August. We continue to successfully
execute our growth strategy, underpinned by our platform
distribution model and our global installed base of more than 435m
users."
Outlook
The Group reaffirms its FY 2019 outlook for Adjusted Revenue to
be at the upper end of high single digit 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 Full Year results to 31 December 2019 on
Wednesday 26 February 2020.
ENQUIRIES
Investors and analysts:
Peter Russell, Director of IR
IR@avast.com
Media:
Stephanie Kane, VP PR and Corporate Communications
mediarelations@avast.com
Lulu Bridges / Jenny Boyd
Tavistock
Tel: 020 7920 3150
Notes
(1) Growth rate excluding currency impact calculated by
restating Q3 2019 actual to Q3 2018 FX rates. Deferred revenue is
translated to USD at date of invoice and is therefore excluded when
calculating the impact of FX on revenue
(2) As the company is exiting its toolbar-related search
distribution business, which had previously been an important
contributor to AVG's revenues (referred to above, with the Group's
browser clean-up business, as "Discontinued Business"), the growth
figures exclude Discontinued Business, which the Group expects to
be negligible by the end of 2019
(3) To reflect the underlying organic growth performance, growth
figures exclude the impact of the Managed Workplace disposal made
at the end of January 2019, through the exclusion of Managed
Workplace results in February to September 2018
(4) The impact on Adjusted EBITDA and Cash EBITDA following the
adoption of IFRS 16 on 1 January 2019 is $6.5m (favorable impact on
EBITDA margin% by 1% point for 9M 2019).
(5) The impact of IFRS 16 on Net debt (lease liabilities) is a
$69.6m increase. Leverage ratios excluding the impact of IFRS 16
would be 1.8x on Adjusted EBITDA and 1.7x on Adjusted Cash
EBITDA.
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END
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