Keywords Studios - An attractive proposition for uncertain times
Keywords’ FY20 results were in line with its trading update (FY20 revenues €373.5m, adjusted PBT €55.0m), with 12% organic growth in FY20 despite COVID-19. Adjusted EBITDA rose 29% to €74.2m, with PBT up 35% to €55.0m and adjusted PBT margins climbing to 14.7%, close to management’s 15% long-term target. We believe the outlook for FY21 looks benign, with demand for Keywords’ services continuing to build in the short to medium term. Sonia Sedler joined in January as COO to strengthen the management team and has been appointed interim joint CEO, alongside Jon Hauck (CFO), pending Andrew Day’s return as CEO. We have updated our estimates for the €46.8m acquisition of Tantalus Media and introduced FY23 estimates. With net cash and facilities totalling €202.9m at year end, Keywords remains well placed for further M&A.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.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.