REG - Keywords Studios PLC - Trading Update

Keywords StudiosAnnouncement

21/11/2022 07:00

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RNS Number : 0353H  Keywords Studios PLC  21 November 2022

21 November 2022

 

Keywords Studios plc

("Keywords Studios", "Keywords", "the Group")

 

     Trading Update

 

Full year performance now expected to be ahead of market expectations

 

Keywords Studios, the international technical and creative services provider
to the global video games industry, today provides a trading update for the
year ending 31 December 2022.

The Group has continued to perform very well in the second half of the year,
building on the encouraging start to the period and the strong performance in
H1. The Group has benefitted from the continued strength of the US dollar
during the period, which has meant that the adjusted profit before tax(1)
margin remained higher than anticipated.

As a result, the Board now expects that full year revenue for 2022 will be at
least €675m (+32% year-on-year growth) and the adjusted profit before tax
will be in excess of €110m (+28% year-on-year growth), both comfortably
ahead of current analysts' consensus(2).

Outlook for 2023

We expect the positive trading momentum to continue into 2023. Organic growth
is expected to moderate but remain above the medium-term guidance of 10%+,
with adjusted profit before tax margins expected to move to historical levels
of c.15% as previously guided and as we invest into the business to support
our growth ambitions.  As a result, we are confident in achieving a
performance at the upper end of the current analysts' forecast range(3) for
2023.

The Group will provide a further update with its scheduled trading update at
the end of January 2023.

 

Bertrand Bodson, Chief Executive Officer of Keywords Studios, commented:

"We expect to deliver another excellent year of growth as the demand for our
unique full-service platform remains strong. We have continued to grow our
global footprint, scale and capabilities to deliver an ever more compelling
proposition and support our customers' needs wherever they are in the world.

"Looking forward, whilst mindful of the current economic climate, I am excited
about the opportunity ahead for Keywords as our leading position in the
growing content creation market and our strong balance sheet mean we are well
placed to continue to build on the Group's successful organic and acquisitive
growth track record."

 

(1) Adjusted profit before tax comprises Profit before taxation as reported
in the Consolidated statement of comprehensive income, adjusted for
share-based payment expense, costs of acquisition and integration,
amortisation and impairment of intangible assets, non-controlling interest,
foreign exchange gains and losses, and unwinding of discounted liabilities. In
order to present the measure consistently year-on-year, other income is
excluded.

(2) As at 18 November 2022, company compiled analysts' forecasts gave a
consensus for FY 2022 of €648m of revenue (range: €632-669m) and €102m
of adjusted profit before tax (range: €97-105m).

(3) As at 18 November 2022, company compiled analysts' forecasts gave a
consensus for FY 2023 of €737m of revenue (range: €712-779m) and €112m
of adjusted profit before tax (range: €106-118m).

 

For further information, please contact:

 Keywords Studios                                +353 190 22 730

 Bertrand Bodson, Chief Executive Officer        investors@keywordsstudios.com

 Jon Hauck, Chief Financial Officer

 Giles Blackham, Investor Relations

 Numis Securities                                +44 20 7260 1000

 Stuart Skinner/Kevin Cruickshank/Will Baunton

 MHP Communications (Financial PR)               +44 20 3128 8794

 Katie Hunt/Eleni Menikou/Charles Hirst          keywords@mhpc.com (mailto:keywords@mhpc.com)

 

About Keywords Studios (www.keywordsstudios.com
(http://www.keywordsstudios.com/) )

Keywords Studios is an international technical and creative services provider
to the global video games industry. Established in 1998, and now with over 70
facilities in 26 countries strategically located in Asia, Australia, the
Americas and Europe, it provides services across the entire content
development life cycle through its Create, Globalise and Engage service lines
to a blue-chip client base of over 950 clients across the globe.

Keywords Studios has a strong market position, providing services to 23 of the
top 25 most prominent games companies. Across the games and entertainment
industry, clients include Activision Blizzard, Bandai Namco, Bethesda,
Electronic Arts, Epic Games, Konami, Microsoft, Netflix, Riot Games, Square
Enix, Supercell, TakeTwo, Tencent and Ubisoft. Recent titles worked on include
Anthem, Star Wars Jedi: Fallen Order, Valorant, League of Legends, Fortnite,
Clash Royale and Doom Eternal. Keywords Studios is listed on AIM, the London
Stock Exchange regulated market (KWS.L).

 

 

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