Karachi, December 08, 2021 (PPI-OT): AVN and Octopus Digital – Corporate Briefing Takeaways

Avanceon Limited (AVN) held its corporate briefing session today to discuss the outlook of the company. Management shared its plan of getting its revenue to the US$100mn mark by the year 2024. The company plans to expand in the markets where it already has presence namely the Qatar, UAE and KSA markets. AVN also plans to expand its product portfolio for the Oil and gas sector in UAE and Africa.

AVN is in the process of setting up an equity JV with one of the largest groups in KSA. A formal announcement will be made within a month’s time.

Going forward, AVN plans to completely shift to a cloud-based setting to improve the quality of services provided. The management believes that at present its competitors do not have the band-with and the resources to invest in such a venture.

Management shared that it follows IFRS-15 for revenue recognition and that the company has a very conservative revenue recognition policy. Management claimed that company’s auditor, Ernst and Young, has never made it reverse any revenue recognized.

Company’s operations have been impacted due to supply chain issues, but management hopes these issues to resolve in the coming quarters.

The management shared its projections both for AVN and Octopus Digital and affirmed that it stays hopeful of achieving its forecasts. AVN is projected to post a Revenue of Rs8.51bn for the year. Whereas, EBITDA for the ongoing year is projected at Rs1.7bn.

AVN’s subsidiary, Octopus Digital is expected to post a revenue in excess of Rs11bn by the 6th year of operations. Octopus Digital is not impacted by the same cycles as AVN and has a different array of services offered.

More than 70% of the company’s Revenues are international and thus are positively impacted by rupee devaluation.

Company plans to maintain a lower leverage.