Business Irish

Tuesday 18 June 2019

Revenue at Keywords Studios jumps 72pc

Andrew Day, CEO of Keywords
Andrew Day, CEO of Keywords
Ellie Donnelly

Ellie Donnelly

Irish video-game company Keywords Studios has reported a 72pc increase in its revenues to €110m in the six months to 30 June.

Adjusted profit before tax is expected to be €16m for the six months, according to a trading update from the group.

The result is especially significant give the weakening of the US dollar, in which roughly 60pc of the group’s revenues are denominated.

Keywords said that the 11 acquisitions made during 2017, as well as the seven acquisitions made since the beginning of 2018 are all performing "in line with expectations."

In addition, the group said that its largest acquisition to date, VMC, completed in October last year has been well integrated with the rest of the group.

Since the start of this year Keywords has invested nearly €10m in acquisitions.

And the acquisition spree looks set to continue with the group "actively reviewing" a number of acquisition opportunities in line with its acquisition strategy.

Keywords will fund the acquisitions through a combination of its new €105m credit facility with Barclays, Lloyds, and HSBC, continuing strong cash generation, and the use of Keywords shares to part-fund acquisitions, where appropriate.

"With the benefits of a full six months contribution from first half acquisitions, a strengthening dollar, a healthy pipeline of activity and expanded capacity to deliver it, we anticipate a strong second half performance in line with current market expectations for the full year," Andrew Day, CEO of Keywords, said.

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