Keywords Studios performs 'very well' in H2

Video game services group Keywords Studios said on Monday that it had continued to perform "very well" in the second half of the year, building on its "encouraging start" and strong performance in the first half.

Keywords Studios stated it had benefitted from the "continued strength" of the US dollar during the second half, which drove adjusted pre-tax profit margins to a higher-than-anticipated level.

As a result, Keywords now expects full-year revenues to be at least €675.0m, up 32% year-on-year, and adjusted pre-tax profits to be in excess of €110.0m, up 28% year-on-year and "comfortably ahead" of current consensus estimates.

Keywords added that it expects recent positive trading momentum to continue into 2023, with organic growth predicted to moderate but remain above the medium-term guidance of 10% and adjusted profit before tax margins seen at historical levels of roughly 15%.

Chief executive Bertrand Bodson said: "We expect to deliver another excellent year of growth as the demand for our unique full-service platform remains strong. We have continued to grow our global footprint, scale and capabilities to deliver an ever more compelling proposition and support our customers' needs wherever they are in the world.

"Looking forward, whilst mindful of the current economic climate, I am excited about the opportunity ahead for Keywords as our leading position in the growing content creation market and our strong balance sheet mean we are well placed to continue to build on the group's successful organic and acquisitive growth track record."

As of 0955 GMT, Keywords shares were up 4.24% at 2,852.0p.

Reporting by Iain Gilbert at Sharecast.com