Keywords Studios PLC (AIM:KWS, OTC:KYYWF), which last month upgraded expectations for its 2021 performance, nudged the guidance higher yet again.
The technical and creative services provider to the global video games industry said revenue is expected to be around €512mln, up from previous guidance of “at least €505mln” and from 2020’s €373.5mln.
The adjusted profit before tax should be around €86mln, up from €55.0mln the year before. In December, the company had indicated adjusted profit before tax would top €85m.
Organic revenue growth is expected to clock in at roughly 19%, compared to a growth rate in the first half of the financial year of 22.9% and 2020’s organic revenue growth rate of 11.7%.
The group's strong performance during the year reflected high levels of demand for its services, driven by the buoyant video games market, the industry's focus on new content creation and the continued trend in the industry towards external service provision.
The business also benefited from reduced costs due to coronavirus (COVID-19), primarily relating to remote working and reduced property, travel and business development costs.
Keywords said it expects these reduced costs to rise again with the anticipated easing of restrictions in 2022 alongside further investment in its platform and people.
At the end of 2021, the group has net cash of around €103mln, up from €84.1mln at the end of June.
"We are well placed to continue to capitalise on the group's unique full-service platform powered by our incredibly talented team of over 10,000 Keywordians, including over 1,500 game developers,” said Bertrand Bodson, who took over the chief executive role at the beginning of December.
“We continue to deliver an ever more compelling proposition globally for our partners in the buoyant video games market, and adjacent content industries. We expect the group's trading momentum to continue in 2022, as we invest in the platform and our people to build further on the group's successful organic and acquisitive growth track record," he added.