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.£1066.3m
Last close1,728.00p
High / Low (52 weeks)1844.0p / 580.0p
Stock market listingLN
Forecast net cash (€m)12.1
Forecast gearing ratio (%)N/A

Price performance

Relative *12.622.8184.6

* % Relative to local index

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Company news

Investment summary

FY17 was a transformational year for Keywords, both operationally and financially. Acquisitions have bolstered the company’s capability set and geographical reach, while driving strong double-digit earnings growth. The recent trading update confirmed that organic growth remains strong and we see potential for market share gains to accelerate, driven by a strengthened platform for cross-selling. It is not unreasonable to expect a similar scenario into FY18/19. Execution of this should drive further share price upside, despite the premium rating.

Last updated on 02/03/2018

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2015A 58.0 9.5 8.0 12.6 155.5 198.1
2016A 96.6 16.9 14.9 20.3 96.5 74.3
2017E 150.5 25.9 22.5 29.0 67.6 53.8
2018E 239.7 40.9 35.8 45.6 43.0 34.6

Last updated on 21/02/2018

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 02/03/2018

Key management

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

Company address

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