Avast shares dipped 0.1% to 679.8p in late morning trading on Tuesday, following a 7.6% drop in adjusted EBITDA to $249.7 million and a 4.4% fall in adjusted EBITDA margin to 52.9%.
The software company said its EBITA decline was linked to higher investment into its Digital Trust Services sector.
Avast confirmed an operating profit slide to $172.6 million from $226.7 million on the back of higher exceptional costs of $25.3 million and higher additional costs of $27.8 million.
The company highlighted a 0.2% decline in statutory revenue as a result of its Family Safety mobile business disposal in FY 2021.
However, Avast reported a 0.2% rise in adjusted revenue to $472 million, alongside a 0.2% uptick in billings to $483.7 million. Meanwhile, consumer direct revenue climbed 1.4% to $407.1 million.
The group mentioned strong cash generation, with unlevered free cash flow of $217.1 million and levered free cash flow of $204.3 million.
Avast further noted a resilient balance sheet with $378 million in cash and available liquidity.
The company announced a fully diluted EPS of 13c compared to 20c the year before.
Avast/Norton merger
Avast highlighted its recommended merger with NortonLifeLock, after the Competitions and Markets Authority (CMA) approved the transaction, following its conclusion that the merger would not significantly reduce UK competition in the sector.
The current statutory deadline for the CMA’s final report is scheduled for 8 September 2022.
Dividend
Avast recommended a HY1 2022 dividend of 4.8c per share, following its second interim dividend for 2021 of 11.2c paid in February 2022 and a total FY 2021 dividend of 16c per share.