5th Apr 2016 07:15
LONDON (Alliance News) - Keywords Studios PLC on Tuesday said it has lifted its dividend by 10% after reporting material rises in profit and revenue during 2015 when it made a string of acquisitions and secured a number of new customers.
The technical services provider to the global video games industry acquired four companies in the year to expand its service capabilities and geographical reach, snapping up companies based in Brazil, Spain, Mexico and the US.
Keywords said the number of clients using three or more of its services increased by 70%, whilst like-for-like sales remained strong by increasing 20% year-on-year. It also boasted Oculus VR, Amazon, Gearbox, Fincon, Net Marble and Obsidian Entertainment as new clients of the company in 2015.
That led pretax profit to rise to EUR5.1 million from the EUR3.4 million reported in 2014, as revenue climbed to EUR58.0 million from only EUR37.3 million the year before.
The large lift in revenue almost doubled gross profit to EUR21.8 million from EUR12.7 million, but a large lift in administrative expenses partly offset that growth as operating profit came in at EUR5.8 million from EUR3.1 million.
As a result, Keywords increased its total dividend for 2015 by 10% to 1.21 pence from the 1.10p paid in 2014.
"2015 has been another year of strong progress in delivering against the ambitious strategy we set out at the time of the group's flotation in 2013, both organically and by acquisition," said Chief Executive Andrew Day. "The current year has started well with the group trading in line with the board's expectations."
Keywords acquired Alchemic Dream, Reverb, Kite Team and Liquid Development in 2015, boosting its customer support service, audio and art creation capabilities. Since the end of 2015, Keywords has also agreed to acquire Mindwalk Studios to boost its geographical reach further as it enters into China.
Keywords has also struck a four-year outsourcing deal since the end of the year with Ankama SAS in the Philippines to develop its customer service business.
"We expect to make further progress during 2016 with continued organic momentum in the business, as well as realising further synergies, benefiting from the full year effect of our 2015 acquisitions and from the acquisitions of Ankama and Mindwalk in 2016. We are also actively reviewing a number of acquisitions with the potential to further complement our continued strong organic growth. We, therefore, look forward to 2016 with confidence," said Day.
Keywords shares were up 4.4% to 228.0 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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