Keywords Studios PLC (AIM:KWS, OTC:KYYWF), a global provider of creative and technology-enabled solutions to the video games and entertainment industries, reported a year of resilient financial performance despite the impact of Hollywood strikes.
The group reported annual revenue growth for the year ending 31 December of 13% to €780.4 million, compared to €690.7 million in 2022.
Organic revenue growth, excluding the impact of US strikes and foreign exchange fluctuations, was approximately 9%.
Keywords saw adjusted operating profits rise 6.5% to €122 million (£104 million) from €114.6 million the previous year, with an adjusted EBITDA of €158.3 million, up 7.8% year-on-year.
The adjusted operating profit margin decreased from 16.6% to 15.6%, though this was ahead of guidance, reflecting stringent cost control measures.
Adjusted earnings per share slightly decreased by 0.5% to 112.9 cents, down from 113.5 cents in 2022, with reported EPS dropping 25.3 cents from 61.5 cents.
Keywords proposed a final dividend of 1.76p per share, up 10% from the previous year.
The group swung to a net debt position of €67.5 million, primarily due to its aggressive acquisition strategy, compared to a net cash position of €81.8 million at the end of 2022.
Keywords added five high-quality acquisitions totalling a maximum consideration of €225 million. They are expected to extend high-value offerings in Create and Engage services while adding approximately €90 million in pro-forma revenues.
For 2024, Keywords is optimistic about delivering strong revenue and profit growth. The company expects to leverage improving organic growth, recent M&A activities, and sustained adjusted operating profit margins above 15%.
Chief executive Bertrand Bodson commented: "In what was a difficult year for the industry, we delivered resilient performance in 2023 and continued to extend our market leadership position, reflecting our role as a diversified enabler of the industry.
“Whilst the industry back-drop remains tough in the near term, our diversified technology-enabled offering and strong client relationships means that we are incredibly well-positioned to continue to grow our market share as we support clients in the creation of ever more exciting and immersive experiences.”
Last September, Members of SAG-AFTRA, the trade union representing over 100,000 actors and performers, voted in favour of a strike authorisation on the Interactive Media Agreement that covers members’ work on video games.
Shares rallied 6.5% in opening exchanges following today's results.