Keywords Studios

Keywords Studios is a technical services provider to the video games industry. Co.'s segments include: Localization Services, which relate to translation and cultural adaptation of in-game text and audio scripts; Localization Testing, which includes testing of linguistic correctness and cultural acceptability of computer games; Audio/Voiceover Services, which relate to audio production process for computer games; Functional Testing, which relates to quality assurance services provided to game producers; Art Creation Services, which relate to the production of graphical art assets for inclusion in the video game; and Customer Support, which relates to the live operations support services.
  • TickerKWS
  • ISINGB00BBQ38507
  • ExchangeLondon Stock Exchange
  • SectorSupport Services
  • CountryUnited Kingdom
Richard Williamson

Keywords Studios - Delivering the promise of a resilient growth model

In Keywords Studios’ trading update, management expectations are for H120 revenues of approximately €173.5m, delivering organic growth of 8% and a rise of 13% over H119 (€153.2m). Adjusted EBITDA is expected to be €30.8m (17.8% margin), a 19% increase on H119 (€25.8m), with adjusted PBT of €21.7m, 18% higher than H119 (€18.4m). Given the impact of COVID-19, this represents a strong performance, helping to demonstrate the benefits of a diversified services business, with a global footprint. We maintain our view that Keywords is well placed as the only games service provider on a g...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EM Equities At New Highs Despite Some Caution Signs We continue to believe the path of least resistance is higher for global equities. As a result, our outlook remains bullish and we suggest buying any dips. · Global Equities Remain Bullish. A weaker US dollar (DXY) has paved the way for new highs in a number of non-US global indexes, including for emerging markets (EEM-US) and developed international (VEA-US). As we like to say, new highs are not a sell signal. We believe that as long as the DXY is below 96, it will be bullish for global risk sentiment and we believe EM/non-US outp...

Richard Williamson

Keywords Studios - £100m placing, trading resilient

Keywords announced a £100m equity placing on 14 May 2020. The funds are to increase flexibility for the group’s buy-and-build M&A strategy and reinforce its financial position. Management also updated on trading over March and April (7% y-o-y growth), with January and February showing 21% y-o-y growth. Recognising this resilience during lockdown, we have raised our revenue growth forecast for FY20 to 8% y-o-y (4% previously), with a consequential impact on FY21e (€405.8m, 15% growth). We maintain our view that Keywords is well placed as the only games service provider on a global scale. T...

Expert Corporate Governance Service (ECGS)

Keywords Studios – AGM 27 May 2020

Item 3: Re-elect Mr. Andrew Day, CEO   ECGS voting policy recommends to oppose the election of the CEO in the UK, if he is a member of the nomination committee.   Item 6: Re-elect Mr. Ross Graham, Chairman   Mr. Ross Graham chairs the Nomination Committee while the gender diversity does not respect our guidelines and market practice: the Board's female diversity is only 14% compared to our requested minimum of 30%. There has been no progress in gender diversity. Consequently, in line with ECGS policy, we recommend to oppose the re-election of the Chairman of the Nomination Committee cons...

Richard Williamson

Keywords Studios - A diversified, resilient business in troubled times

Keywords delivered a strong performance in FY19 (revenue growth of 30.2% overall, 15.5% organic, 21.2% like-for-like), very much in line with its January trading statement. In the face of the uncertain impact of COVID-19, we are revising our FY20 revenue estimate down, assuming nominal l-f-l 1% revenue growth, with operating profit falling to €38.1m (11.2% margin). We introduce FY21 forecasts, with games industry growth in FY21 helping the business bounce back with 15% revenue growth. The company’s FY21e P/E multiple of 31.1x reflects continuing industry growth, a strong track record and l...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for international equity markets, and supports our neutral outlook (at best)... see page 2. We continue to recommend avoiding broad indexed exposure in favor of selectivity. In today's report we highlight actionable country- and Sector-specific themes: • Norway and India are leadership. Norway's Oslo OBX and India's SENSEX remain global leaders. Overweight these markets... see below and page 3 for overviews and actionable country-specific stocks. • Aus...

1 director sold

A director at Keywords Studios sold 500,000 shares at 1,540p and the significance rating of the trade was 71/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board...

Richard Williamson

Keywords Studios - Delivering the promise of a resilient growth model

In Keywords Studios’ trading update, management expectations are for H120 revenues of approximately €173.5m, delivering organic growth of 8% and a rise of 13% over H119 (€153.2m). Adjusted EBITDA is expected to be €30.8m (17.8% margin), a 19% increase on H119 (€25.8m), with adjusted PBT of €21.7m, 18% higher than H119 (€18.4m). Given the impact of COVID-19, this represents a strong performance, helping to demonstrate the benefits of a diversified services business, with a global footprint. We maintain our view that Keywords is well placed as the only games service provider on a g...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EM Equities At New Highs Despite Some Caution Signs We continue to believe the path of least resistance is higher for global equities. As a result, our outlook remains bullish and we suggest buying any dips. · Global Equities Remain Bullish. A weaker US dollar (DXY) has paved the way for new highs in a number of non-US global indexes, including for emerging markets (EEM-US) and developed international (VEA-US). As we like to say, new highs are not a sell signal. We believe that as long as the DXY is below 96, it will be bullish for global risk sentiment and we believe EM/non-US outp...

Richard Williamson

Keywords Studios - £100m placing, trading resilient

Keywords announced a £100m equity placing on 14 May 2020. The funds are to increase flexibility for the group’s buy-and-build M&A strategy and reinforce its financial position. Management also updated on trading over March and April (7% y-o-y growth), with January and February showing 21% y-o-y growth. Recognising this resilience during lockdown, we have raised our revenue growth forecast for FY20 to 8% y-o-y (4% previously), with a consequential impact on FY21e (€405.8m, 15% growth). We maintain our view that Keywords is well placed as the only games service provider on a global scale. T...

Richard Williamson

Keywords Studios - A diversified, resilient business in troubled times

Keywords delivered a strong performance in FY19 (revenue growth of 30.2% overall, 15.5% organic, 21.2% like-for-like), very much in line with its January trading statement. In the face of the uncertain impact of COVID-19, we are revising our FY20 revenue estimate down, assuming nominal l-f-l 1% revenue growth, with operating profit falling to €38.1m (11.2% margin). We introduce FY21 forecasts, with games industry growth in FY21 helping the business bounce back with 15% revenue growth. The company’s FY21e P/E multiple of 31.1x reflects continuing industry growth, a strong track record and l...

Richard Williamson

European video games

The games industry is a rare example of a sector set for a good crisis. With billions of extra leisure hours available daily and quick adjustment to distributed working, many games developers and publishers are seeing strong revenue and margin growth. In this report, we compare business models across geographies and look at how different segments of the market may be affected by the COVID-19 pandemic. The general pre-crisis backdrop was a sector forecast to grow at c 8.4% (2019–22), reaching a total market size of $190bn by 2022. Mobile gaming offers a low double-digit revenue CAGR, while...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the we...

Expert Corporate Governance Service (ECGS)

Keywords Studios – AGM 27 May 2020

Item 3: Re-elect Mr. Andrew Day, CEO   ECGS voting policy recommends to oppose the election of the CEO in the UK, if he is a member of the nomination committee.   Item 6: Re-elect Mr. Ross Graham, Chairman   Mr. Ross Graham chairs the Nomination Committee while the gender diversity does not respect our guidelines and market practice: the Board's female diversity is only 14% compared to our requested minimum of 30%. There has been no progress in gender diversity. Consequently, in line with ECGS policy, we recommend to oppose the re-election of the Chairman of the Nomination Committee cons...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch