Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has again upped its top-line and profit guidance for the past calendar year, boosted by high levels of demand for its video games content creation and post-production teams.
The outlook for 2023 also remained strong, despite a complex macroeconomic backdrop and headwinds being cited elsewhere in the industry, the computer games services group said, with management confident of delivering a performance “towards the upper end” of the recently raised analysts' consensus range.
Analysts forecast for the coming year range from revenue of €785mln to €816mln and adjusted profit before tax was in a range of €117mln to €123mln, as of the end of last week.
Chief executive Bertrand Bodson said Keywords’ business model, diversified across over 950 clients and a geographical spread across 26 countries “means that we are less exposed to the ‘hit or miss’ risk from individual games and more insulated from changes to the development cycle of new releases”.
He said the company is “increasingly well positioned” to support clients and “believe that we will see robust demand for content generation”.
“This backdrop, together with our continued delivery against our strategy, means we are well placed for 2023 and will continue to build upon our position as the partner of choice for the global video games industry, and beyond," he added.
For 2022, revenue came in at roughly €690mln and adjusted profit before tax near €112mln, the AIM-listed company stated in a year-end trading statement, which would represent increases of 35% and 30% respectively on the previous year. That is also higher than the €675mln and €110mln previously guided in November.
Organic revenue growth in the second half was around 22% compared to 21.7% in the first and 19% in the prior full year, while five acquisitions were added for an eventual maximum payment of up to €140mln if all deferred elements are paid.
Keywords said cash stood at around €80mln at the end of December, having spent €118mln on acquisitions, including €26mln of deferred sums for additions from prior years.