Wednesday 21 August 2019

Revenue increases at Keywords Studios on the back of acquisitions, flags 'Fortnite effect'

Graphics created by Irish video-gaming company Keyword Studios
Graphics created by Irish video-gaming company Keyword Studios
Ellie Donnelly

Ellie Donnelly

Irish video-game company Keywords Studios saw its revenue jump 66pc to €250.8m in 2018.

On a like-for-like basis revenue increased 10pc.

Adjusted profit before tax increased by 65pc €37.9m, according to annual results from the group.

The acquisition of eight businesses during the year contributed to the company’s performance.

Meanwhile, adjusted basic earnings per share were up 53pc to 47.75c.

However, the group said it had been impacted by the insolvency of four of its clients, some of which was caused by the 'Fortnite effect' on the industry.

"The phenomenally successful Fortnite game attracted some 200 million players during the course of the year and in so doing disrupted other games which we support," the group said.

Last year the Dublin-based group launched Keywords Ventures to make “modest” investments in innovations that it said will benefit its clients.

Andrew Day, CEO of Keywords Studios, said: “The group delivered a strong performance in 2018 as we increased our share of the growing video games market and expanded our range of services.”

“This considerable progress has further improved our quality of earnings and moved us higher up the value chain with our customers.”

Looking to 2019 and the company, which has already made two acquisitions this year, said it expected capital expenditure to be “lighter” than last year.

“We are actively reviewing acquisitions from which we will continue to be selective, with many businesses excited about the strong platform Keywords could potentially provide for their services and people,” Mr Day added.

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