Avast posts rise in H1 earnings, agrees to be bought by NortonLifeLock
Cybersecurity firm Avast - which has agreed to be bought by US rival NortonLifeLock in a £6.2bn deal - reported a jump in first-half adjusted earnings and revenue on Wednesday as it backed its full-year revenue guidance.
In the six months to 30 June, adjusted earnings before interest, tax, depreciation and amortisation rose 11.9% to $270.2m on revenue of $471.3m, up 8.8% on the same period a year ago. Billings were 2.9% higher at $482.7m.
Avast maintained its guidance for full-year revenue growth at the upper end of 6% to 8%.
Chief executive Ondrej Vlcek said: "In line with the board's expectations, we are pleased to report a resilient set of group results for the first half of 2021, against the backdrop of a strong prior year performance.
"We are optimistic about Avast's prospects for the second half of the year, and as comparator period trends start to normalise, we anticipate a reacceleration of billings growth. The launch of our new flagship Avast One product remains on track for later this year. Our focus remains on driving customer engagement, acquisition and retention, which will require higher levels of margin investment in R&D, innovation and marketing over the medium term."
Late on Tuesday, NortonLifeLock announced that it had agreed to buy Avast in a deal that would see shareholders receive cash and shares and which values the company at between $8.1bn and $8.6bn.
The companies said: "The boards of NortonLifeLock and Avast believe that the merger has compelling strategic and financial rationale and represents an attractive opportunity to create a new, industry-leading consumer Cyber Safety business, leveraging the established brands, technology and innovation of both groups to deliver substantial benefits to consumers, shareholders, and other stakeholders."
At 0815 BST, Avast shares were up 3.2% at 586.40p.