Video game services provider Keywords Studios PLC (AIM:KWS, OTC:KYYWF) broadly met expectations in its interim results posted on Wednesday September 21.
It also announced an acquisition of up to C$40mln for games development studio Smoking Gun Interactive, of which the initial cash consideration is C$16mln (£10.5mln).
Amid a transitional shift into development and post-production services, the AIM-quoted company’s top-line result of €321mln (£280mln) represented a 34.5% year-on year gain, a slight improvement on the amount indicated in its recent trading update, with organic revenue growth at 21.7% and a raft of acquisitions in the period.
Adjusted earnings (EBITDA) of €70.1mln were up 38%, with EBITDA margins improving to 21.8% from 21.2%, and statutory profit before tax was up 78% to €39.1mln.
Adjusted earnings per share came to €0.56 and statutory EPS to €0.368, up 34% and 76% respectively.
On the back of healthy results and “continued healthy demand across all service lines" seen in the second half, an interim dividend of 0.77p (GBP) was announced, a 10% yearly bump.
Keywords Studios had over €121mln in net cash on the books at the half year stage, in addition to a €150mln undrawn credit facility.
Chief executive officer Bertrand Bodson said of the results: “The group has delivered a strong performance in the first half, with a heightened focus on high-quality content and the continued trend towards external service provision in the industry, driving healthy demand across our service lines.
“Initial trading in the second half has been encouraging and we are confident of delivering a performance in line with the recently upgraded market expectations for the full year.”
Full-year margins are expected to tighten though, due to further business investments, a return to pre-COVID operating costs, and the transition of staff and operations out of Russia, as indicated in last month's update.