Keywords Studios reports growth in revenue; margins shrink slightly

Writer, Stock Market Wire
Wednesday, September 18, 2019 - 07:33

Keywords Studios announced that first half revenue, including contribution from acquisitions, increased by 39.3% to €153.2m (H1 2018: €110.0m).

Gross profit margin was down from 37.4% to 36.1% as a result of rapid recruitment and training, staffing of new facilities, and the impact of one significant project brought in through an acquisition.

The company continues to invest in their platform as they wish to capture accelerating outsourcing demand in the growing video games market.

To support this, the company signed a new revolving credit facility agreed for up to €140m with Barclays, HSBC, Citibank and Silicon Valley Bank.

Andrew Day, Chief Executive of Keywords Studios, commented: 'Trading in the second half has started well, with continued strong performances from our Game Development, Functional Testing and Art Creation service lines in particular. Overall, this leaves us well placed to deliver revenues for the full year at the upper end of current market expectatons with our profit expectations broadly unchanged.'

Related content

Keywords Studios secures new revolving credit facility for up to €140m

Keywords Studios confirmed it had secured a new revolving credit facility for up to €140m, replacing the existing €105m facility.

The new facility was being...

Mon, 14/10/2019 - 09:08

Keywords Studios appoints Jon Hauck as CFO

Video game services provider Keywords Studios appointed Jon Hauck as Chief Financial Officer, with immediate effect.

David Broderick would be available to the business...

Mon, 14/10/2019 - 08:06

Keywords Studios completes acquisition of TV+SYNCHRON Berlin

Keywords Studios said it had completed the acquisition of TV+SYNCHRON Berlin from Thomas Wolfert.

The company initially announced the acquisition on 18 Sep, but had...

Wed, 02/10/2019 - 08:54

Broker Forecast - Peel Hunt issues a broker note on Keywords Studios

Peel Hunt today reaffirms its sell investment rating on Keywords Studios (LON:KWS) and cut its price target to 1210p (from 1310p).

Broker Forecasts data provided...

Wed, 18/09/2019 - 10:00

Broker Forecast - Berenberg issues a broker note on Keywords Studios

Berenberg today downgrades its investment rating on Keywords Studios (LON:KWS) to hold (from buy) and raised its price target to 1620p (from 1600p).

Broker Forecasts...

Thu, 01/08/2019 - 10:30