Keywords Studios hurdles obstacles to deliver 72% revenue rise

For the six months to 30 June, the videogame industry services provider expects to report revenues of €109.9m, up 72% from the same period last year, and a 66% increase in profit before tax to €15.9m.

"Our progress so far this year has been very encouraging. We have made significant investments, most notably in enlarged facilities and senior and mid-level management, which are further supporting our organic growth in the second half and beyond," chief executive Andrew Day.

The AIM-traded company said that historically low-margin business VMC is already benefiting from being part of a larger group focused on similar services, with a number of its client relationships having been strengthened.

Keywords also had to contend with the weakness of the US dollar against the Euro, with exchange rates declining 12% during the period but 60% of the group's revenues being derived from the currency.

"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," said Day.

In the second half of 2017 and the first of 2018 Keywords has expanded its facilities in Montreal, Dublin, London, Liverpool, Madrid, Katowice, New Delhi, Zhengzhou, Manila and Tokyo and has invested net cash of nearly €10.0m for five further acquisitions so far this year.

Keywords’ shares were down 6.73% at 1,664.00p at 1031 BST.