TIDMKWS
RNS Number : 2172M
Keywords Studios PLC
27 July 2017
27 July 2017
Keywords Studios plc ("Keywords Studios" or "the Group")
Half year trading update
Strong performance in the first half of the year
Keywords Studios, the international technical services provider
to the global video games industry, is pleased to provide an update
on trading for the six months ended 30 June 2017.
The Group has performed strongly during the first half, with
preliminary unaudited revenues for the period up by 50% to EUR63.7m
(H1 2016: EUR42.4m) and a 60% increase in adjusted PBT* to EUR9.6m
(H1 2016: EUR6.0m).
All the Group's service lines showed good organic growth, as
measured on a like-for-like basis, with the exception of Audio
which had a particularly tough comparative due to the exceptional
performance of Synthesis in H1 2016, as previously reported. The
underlying like-for-like** revenue growth was 17%, or 28% when
excluding Synthesis in both periods.
The Group continues to deliver on its strategy of growing
organically and through acquisition in order to become the "go to"
supplier of technical services to the video games industry
globally. To this end, the Group is now comprised of seven globally
managed service lines operating from 33 production studios in 17
countries.
Since the start of the year we have made four acquisitions of
Spov, XLOC, GameSim and Red Hot which have, respectively, extended
the Group's market position as a leading provider of digital art
services; given the Group a content management system which allows
it to provide integrated software and services across the full text
localisation cycle; provided a first step into the market for video
games related software engineering services; and positioned the
Group as the leading global player in the outsourced art services
market in terms of capacity and breadth and depth of service.
To date in 2017 the Group has invested net cash of EUR6.9m for
the acquisitions described above and it continues to evaluate a
healthy pipeline of high quality acquisition opportunities, in line
with its acquisition strategy. The credit facility of up to EUR35m
with Barclays Bank which was announced in April 2017, combined with
continuing strong cash generation and the judicious use of Keywords
shares to part-fund acquisitions where appropriate, leaves the
Group well placed to complete further selective acquisitions this
year.
Andrew Day, Chief Executive of Keywords, commented:
"We are delighted with our progress so far this year. This has
enabled us to deliver a first half performance ahead of our
expectations, underpinning our confidence in the Group at least
meeting market consensus for the year as whole.
"We continue to win new clients and grow market share and are
regularly seeing the benefits of our wider geographic reach and
broader range of services as we introduce additional services to
established clients.
"We look forward to another full year of strong progress as we
continue to invest in existing and new businesses, building our
talent pool and integrating the newer members of our Group."
Keywords Studios will provide a further update on trading with
its half year results which it expects to announce in mid
September.
*The Group reports adjusted PBT before acquisition and
integration expenses, share option charges, amortisation of
intangibles and foreign currency gains
** Calculated on the basis that the H1 2016 comparative includes
all of the 2017 and 2016 acquisitions as if they had been owned for
the same period in 2016 as they have been in 2017.
For further information, please contact:
Keywords Studios (www.keywordsstudios.com)
Andrew Day, Chief Executive
Officer
David Broderick, Chief Financial
Officer +353 190 22 730
Numis (Financial Adviser)
Stuart Skinner / Kevin Cruickshank
(Nominated Adviser)
James Black / Tom Ballard
(Corporate Broker) 020 7260 1000
MHP Communications (Financial
PR)
Katie Hunt /Ollie Hoare 020 3128 8100
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
About Keywords Studios (www.keywordsstudios.com)
Keywords Studios is an international technical services provider
to the global video games industry. Established in 1998, and now
with facilities in Dublin, Rio de Janeiro, Montreal, Quebec City,
Portland, Mexico City, Los Angeles, Seattle, Tokyo, Singapore, New
Delhi, Pune, Rome, Milan, Barcelona, Madrid, Taipei, Shanghai,
Beijing, Manila, Hamburg, Paris and London, it provides integrated
art creation, localisation, testing, audio and customer care
services across 50 languages and 14 games platforms to a blue chip
client base in more than 15 countries. It has a strong market
position, providing services to 21 of the top 25 most prominent
games companies, including Activision Blizzard, Bandai Namco,
Bethesda, Electronic Arts, Konami, Riot Games, Sony, Square Enix,
Supercell, TakeTwo, and Ubisoft. Recent titles worked on include
Uncharted 4: A Thief's End, Call of Duty: Infinite Warfare, Mortal
Combat X, Assassin's Creed Syndicate, Battlefield 1, World of
Warcraft: Legion, Hearthstone, Clash Royale, and Mobile Strike.
Keywords is listed on AIM, the London Stock Exchange regulated
market (KWS.L).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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