16th Sep 2024 17:29
(Alliance News) - Keywords Studios PLC on Friday reported a loss in its first-half results, amid uncertainty in the video game industry and its ongoing acquisition by EQT.
The Dublin-based technical and creative solutions provider to the global video games industry said it swung to a pretax loss of USD25.3 million for the six-month period ended June 30, from a pretax profit of USD25.1 million at the same time last year.
Keywords reported USD49.3 million in costs associated with the acquisition and integration of businesses, mostly down to USD32 million in costs related to the EQT takeover.
In total, Keywords said adjusting cost items amounted to USD76.3 million, versus USD35.0 million a year before. Adjusting for these, pretax profit fell 15% year-on-year to USD51.0 million from USD60.2 million.
Revenue was up 6.6% to USD440.4 million from USD413.3 million.
Keywords declared no interim dividend, in comparison to an 0.85 pence interim payout in 2023.
The company said it expected performance to improve in its second half, as the sector begins to emerge from slower content creation trends. Keywords remains confident in its long-term growth trajectory and ability to outperform the market, and continues to have an active pipeline of acquisition opportunities.
In July, post period-end, Keywords and Houting UK Ltd, a newly-formed company owned by EQT Group, agreed the terms of a final cash acquisition of the entire share capital of Keywords. The offer involved a price of GBP24.50 per share and valued the entire share capital of Keywords Studios at GBP2.1 billion on a fully diluted basis.
Chief Executive Officer Bertrand Bodson said: "Keywords delivered solid growth in the first half despite the current mixed market backdrop. This has resulted in lower activity levels across the industry, as clients recalibrated their operations and game portfolios, and meant that our organic growth was lower than originally anticipated, as flagged in July.
"The [takeover of Keywords by EQT] represents an exciting new chapter for the business as we continue our journey. There is no question that the long-standing support we received as a public company provided the fuel for our growth over the last ten years, and wanted to take this opportunity to thank all of the shareholders who have supported us since we listed on AIM in 2013 with just EUR16 million of revenue, many of whom are still on the shareholder register."
Shares in Keywords Studios closed up 0.1% at 2,429.00 pence each in London on Monday.
Shares are expected to be cancelled on October 24, following the completion of the takeover.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.