Avast PLC (LON:AVST) said it is trading in line with expectations while the disposal of the Family Safety mobile business was completed last week.
The cybersecurity specialist said the sale will be “modestly” earnings dilutive and will benefit reported growth rates over the balance of the year.
It now expects full-year revenue to grow around 8%, which is the upper end of guidance, with the Consumer Indirect segment revised to 1-2% growth.
Due to continued research and development and marketing investment, which will mostly be in the second half, adjusted underlying (EBITDA) will remain broadly flat compared to 2020.
The board has recommended a final dividend of 11.2 US cents per share for 2020, to be paid in June.
In the first quarter of the current financial year, ending on 31 March, revenue jumped 11% to US$236mln, while adjusted EBITDA increased 10% to US$133mln, with margin of 56.4%.
The Consumer Direct business continued to deliver good growth, while the SMB business also sustained its positive momentum.
Last month, the FTSE 100 firm renewed its contract to promote the Chrome web browser with distribution of its consumer antivirus products and CCleaner utility application, through to March 2022.
"The change in guidance comes as a result of the sale of its non-performing business Family Safety Mobile on 16 April, which was a drag on growth," analysts at Peel Hunt noted.
"We already account for this sale in our model, and therefore our forecasts are also at the top end of the range, in line with the new guidance. We retain our 'sell' recommendation given the structural headwinds, which we are beginning to see materialise."
Shares rose 5% to 497.2p early on Tuesday.
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