Keywords Studios (KWS)

Business description

Keywords Studios provides localisation, testing, artwork, community support and now engineering services exclusively to the video games industry. It provides services to 20 of the top 25 games developers and is leading consolidation of this fragmented industry.

Stock data

Market cap.£795.4m
Last close1,416.00p
High / Low (52 weeks)1466.0p / 421.0p
Stock market listingLN
Forecast net cash (€m)6.4
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual11.3278.79206.16
Relative *7.7476.21183.02

* % Relative to local index

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Company news

Keywords Studios acquires video game developer

Thu, 19 Oct 2017 07:02:10 GMT

Keywords Studios PLC scoops AIM growth business of the year award

Fri, 13 Oct 2017 15:01:51 GMT

Keywords Studios crashes through £10 as revenues surge

Thu, 27 Jul 2017 14:50:47 GMT

Keywords Studios acquires clutch of French computer games service suppliers

Fri, 04 Aug 2017 07:22:06 GMT

Keywords Studios investing to accommodate organic growth

Tue, 19 Sep 2017 07:27:21 GMT

Investment summary

Keywords Studios’ financial performance highlights the strength of the company’s platform and its ability to acquire companies at reasonable multiples then drive an acceleration in sales and earnings growth through synergies with the rest of the group. The company’s expansion into art and engineering strengthens this platform further, expanding the company’s addressable market, creating new opportunities for cross-selling and deepening relationships with developers at every stage of the development cycle. Keywords is valued at a premium, but has delivered a 55% EPS CAGR over the past three years and we see ample scope for the company to continue on a similar trajectory.

Last updated on 03/10/2017

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2015A 58.0 9.5 8.0 12.6 123.4 157.2
2016A 96.6 16.9 14.9 20.3 76.6 50.6
2017E 135.1 23.0 20.5 28.6 54.4 38.5
2018E 158.8 27.0 24.3 33.5 46.4 33.1

Last updated on 19/09/2017

Latest video

Executive Interview - Keywords Studios

Industry outlook

Growth is supported by a generally buoyant environment in the global games development industry; market analyst Newzoo estimates the industry grew 8.5% in 2016 and will expand at an annual rate of 6.6% through to 2019. Industry consolidation is ongoing and there is a continued trend to technical outsourcing as publishers seek to improve flexibility and efficiency. Both trends should benefit Keywords.

Last updated on 03/10/2017

Key management

Ross Graham, Chairman
Andrew Day, CEO
David Broderick, FD

Company address

South County Business Park
Dublin 18
Ireland
+353 1 902 2730
View website