Keywords Studios PLC (AIM:KWS, OTC:KYYWF) hiked its dividend by 10% and said trading in 2023 has started well with the business well-positioned to increase market share and navigate volatility.
The services provider to the global video games industry reported revenue for the calendar year of €690.7mln, up 34.8% on the previous year. Adjusted profit before tax (PBT) rose 30.2% to €112mln, while statutory PBT was 41.7% higher at €146.9mln.
In January the company guided to revenue of roughly €690mln and adjusted profit of €112mln.
A final dividend per share of 1.60p was declared, up from 1.45p last time, bringing the total dividend for 2022 to 2.37p compared to 2.15p.
Keywords' chief executive Bertrand Bodson said trading has “started well” in 2023, with trading in line with expectations for the year, which continues to be for organic growth to moderate from 2022 levels but remain above the medium-term guidance of at least 10%, at around 15%.
“Whilst mindful of the increasing uncertainty within the broader industry and potential for foreign exchange movements, we are excited about the opportunity ahead with our business model, highly diversified client base, adoption of technology and geographic reach.
“We are increasingly well positioned to support our clients in generating engaging content for their leading franchise," he added in the results statement.
Against a backdrop of higher interest rates globally, Keywords said it will focus future guidance on adjusted operating profit, which it said has historically has been very similar to adjusted PBT, and this is expected to be around 15% in 2023.
With cash of €91.8mln in the bank, the company said it is well-funded to continue its acquisition strategy, with a “healthy number” of M&A opportunities in the pipeline.