21st Sep 2022 10:10
(Alliance News) - Keywords Studios PLC on Wednesday reported a robust performance in the first half of 2022, with a double-digit rise in profit and revenue as a result of sustained demand, but it expects growth to start moderating.
The Dublin-based technical and creative services provider also announced the acquisition of Vancouver, Canada-based video game development studio Smoking Gun Interactive Inc for up to CAD40 million, around GBP26.4 million.
Smoking Gun develops cross platform games for PC and mobile, including Microsoft Solitaire Collection and multiplayer real-time strategy Age of Empires: Castle Siege.
Keywords will pay an initial CAD16.0 million, followed by an issue of CAD4 million in shares, and up to CAD20 million in cash and shares based on growth target over the year after acquisition.
"The acquisition builds on our presence in the Vancouver area, which is a rich source of talent and one of North America's video gaming hubs. We are really looking forward to working with the Smoking Gun team and supporting the studio's continuing growth as part of the group," said Chief Executive Officer Bertrand Bodson.
For the first half of 2022, Keywords Studios posted a pretax profit of EUR39.1 million, up 78% from EUR21.9 million in the same period a year prior, on revenue which grew 35% year-on-year to EUR321.1 million from EUR238.7 million.
Revenue growth was fostered by sustained demand in all service lines, with the Create and Globalize units in particular benefiting from the current levels of content creation.
Keywords declared an interim dividend of 0.77 pence per share, up 10% from 0.70p a year before.
Looking ahead, Keywords said it had made an encouraging start to the second half of 2022, as demand remained healthy.
However, noting a more uncertain macroeconomic environment and potential volatility in the scheduling of certain projects, organic growth rate in the second half are expected to moderate, while adjusted pretax profit margins moved to historic levels of 15% as Keywords invests in the business.
"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," CEO Bodson said.
Shares in Keywords Studios were down 2.3% at 2,296.00 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Keywords Studios Plc