Keywords Studios PLC - Half Year Trading Update
Half year trading update and new
Excellent Like for Like revenue growth and significant organic investment
The Group has grown very strongly during the first half, with unaudited revenues for the period expected to be up by c.39% to approximately
This performance was driven by particularly strong growth in our Functional Testing and
Adjusted PBT* is expected to increase by 15% to approximately
During the first half, the particularly strong demand for certain service lines required us to bring forward the expansion of facilities and incur extra costs in areas such as recruitment, training, IT and HR. In addition, the Group invested in establishing Functional Testing operations in
Keywords has made four acquisitions in the period that are integrating well and we continue to review a strong pipeline of acquisition opportunities. Cash invested in acquisitions has totalled €7.0m, which comprised of €5.2m in respect of those companies acquired during the year and
New Financing Facility
The Group today announces that it has agreed terms for a new revolving credit facility, subject to final contract. The new facility is being provided by Barclays Bank plc,
"We were pleased by the strong performance of the Group in the first half, incorporating as it does the anticipated lower growth VMC business acquired in
"Demand from new game streaming services has continued to drive volume increases for us, and we continue to benefit from clients increasing the number of services acquired from Keywords with 113 clients now taking 3 or more services (99 as at
"We continue to review a healthy pipeline of acquisition candidates in line with our strategy to build our business both organically and through acquisition. The new, enlarged banking facility will give us the flexibility and headroom to deliver that strategy and further enhance shareholder value."
*the Group reports adjusted Profit Before Tax (PBT) before acquisition and integration expenses, share option charges, amortisation of intangibles and foreign currency gains.
**like for like (LFL) revenue at constant exchange rates is calculated by adjusting the prior year revenues comparison by adding pre-acquisition revenues for the period equivalent to the period of ownership in the current year results, and applying consistent foreign exchange rates in both years.
For further information, please contact:
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+353 190 22 730
Numis (Financial Adviser)
020 7260 1000
020 3128 8193
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.
It has a strong market position, providing services to 23 of the top 25 most prominent games companies, including Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Konami, Riot Games, Sony, Square Enix, Supercell, TakeTwo, Epic Games and Ubisoft. Recent titles worked on include Uncharted 4: A Thief's End, Call of Duty: WWII, Mortal Combat X, Assassin's Creed Origins, Battlefield 1,
This information is provided by RNS, the news service of the
Quick facts: Keywords Studios PLC
Market Cap: £1.33 billion
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