Avast says its organic revenue jumped 6.6% in the fiscal first half

Avast says its organic revenue jumped 6.6% in the fiscal first half
Written by:
Wajeeh Khan
August 12, 2020
  • Avast says its organic revenue jumped 6.6% in the fiscal first half.
  • The cybersecurity company adds 640K new paying customers in fiscal H1.
  • The London-listed firm notes a 2.1% growth in adjusted core earnings.

In a report on Wednesday, Avast plc (LON: AVST) said that its financial performance in the first half (H1) of the current fiscal year remained robust on the back of work from home trend fuelled by the Coronavirus pandemic that has so far infected more than 300,000 people in the United Kingdom and caused over 46,500 deaths. As per a report on Wednesday, Britain’s economy contracted by about 20.4% (record-high) in the quarter that concluded in June.  

The company also expressed confidence that it will report growth in its organic revenue this year. Avast boasted to have upgraded its anti-virus for enhanced defence against ransomware attacks last week.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Shares of the company opened more than 1.5% down on Wednesday. The stock continued to plummet in the next hours and tanked another 5% to 559 pence per share. It, however, is still trading more than 15% up as compared to the per-share price at which it started the year 2020.  Here’s what you need to know about investing online in the stock market.

Avast adds 640,000 new paying customers in fiscal H1

According to Avast, it brought about 640,000 paying customers on board in the first six months of the financial year. CEO Ondrej Vlcek commented on the company’s report on Wednesday and said:

“We are especially pleased by the increase in new customers. We now have over 13 million paying customers on the desktop platform.”

Vlcek also accentuated in his comment that demand for Avast’s anti-virus was particularly high in recent months. Its privacy and performance software, he added, also contributed to the hawkish performance as COVID-19 saw companies resorting to work from home arrangements.   

According to the CEO, Avast’s full-year organic review is now expected to jump over 5%. The Czech multinational’s desktop segment makes up roughly 79% of its total billings.

Avast notes a 2.1% growth in adjusted core earnings

On Wednesday, Avast acknowledged the impact of the health crisis on its other businesses that partially offset the strength of its desktop segment. The company said that demand for its security software from mobile operators was under pressure in the recent quarter.

At £184.94 million, the Prague-based company said that its core earnings on an adjusted basis in the fiscal first half came in 2.1% higher on a year over basis. Experts had anticipated the company to print a lower £181.80 million in adjusted core earnings.

In terms of organic revenue, Avast noted a 6.6% jump in H1 to £331.81 million that also marginally topped analysts’ estimates.

At the time of writing, Avast is valued at £5.73 billion and has a price to earnings ratio of 29.88.