Keywords Studios PLC (AIM:KWS, OTC:KYYWF) expects revenue and profit for 2022 to beat market consensus forecasts on the back of a boost from the strong US dollar and also predicted results at the upper end of the analyst forecast range for 2023.
The strong performance seen in the first six months continued into the second half, the creative and technical services provider to the global video games industry said in a trading update, adding that the continued strength of the dollar during the period meant the adjusted pre-tax profit margin remained higher than anticipated.
As a result, the company is now forecasting 2022 revenue of at least €675mln, which would represent 32% year-on-year growth, and adjusted pre-tax profit above €110mln, up 28% on 2021. Both are “comfortably ahead of current analysts' consensus” forecast range for revenue of €632mln-€669mln and profit of €97mln-€105mln, Keyword said.
"We expect to deliver another excellent year of growth as the demand for our unique full-service platform remains strong. We have continued to grow our global footprint, scale and capabilities to deliver an ever more compelling proposition and support our customers' needs wherever they are in the world,” commented chief executive officer Bertrand Bodson.
Looking ahead to 2023, Keyword said organic growth is expected to moderate but remain above its medium-term guidance of 10% growth, with adjusted pre-tax profit margins forecast to move to historical levels of around 15% as previously guided.
“As a result, we are confident in achieving a performance at the upper end of the current analysts' forecast range for 2023” for revenue of €712mln-€779mln and adjusted profit before tax of €106mln-€118mln, it said.
Bodson added: "Looking forward, whilst mindful of the current economic climate, I am excited about the opportunity ahead for Keywords as our leading position in the growing content creation market and our strong balance sheet mean we are well placed to continue to build on the group's successful organic and acquisitive growth track record."