16 December 2013

Keywords Studios plc ("Keywords Studios", "the Group")

Market and Trading Update

Keywords Studios, the international technical services provider to the global video games industry, today provides an update on trading following the successful launches of both the Xbox One and the PlayStation4 ("PS4") in the past weeks.

Following the Group's announcement on 20 September 2013, the board confirms that revenue and profits for 2013 will be in line with revised market expectations.

The launches of the Xbox One and PS4 have been highly successful, with both consoles reported to have significantly outstripped the initial sales performances achieved during the launches of Xbox 360 and PS3.  Industry commentators believe that this performance indicates that the new generation consoles will surpass the sales of the previous generation within a considerably shorter cycle.  This revitalisation of the console sector has come at a time when the industry is also being driven by substantial growth in smartphone gaming, where Keywords is strongly represented through its support of leading players such as King, Supercell, Disney, Kixeye and Zynga.  

Approximately 60% of Keywords Studios' revenues are derived from the console games market.   The Group has continued to gain market share in this segment during the current financial year and has worked on over half of all the launch titles for the PS4 and Xbox One platforms.  The Group has also continued to make strong progress in working on additional titles from its existing blue-chip client base in mobile, social and online gaming.

Andrew Day, Chief Executive of Keywords Studios, commented:

"Keywords Studios is proud to have played a key role in the majority of the game titles for the successful launch of the PS4 and Xbox One platforms.  2014 is expected to be a year of significant activity for the games industry as it supports the fast growing new generation hardware and the existing 250m installed console base as well as the significant growth being seen in smartphone gaming. 

"Our strong market position, following our continued success in gaining market share, leaves us well placed to take advantage of industry growth whilst we are also making good progress in reviewing a number of high quality acquisition opportunities."

¹ Gartner, Market Trends: Gaming Ecosystem Goes Mobile with New Monitization Models, 21 November 2012

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About Keywords Studios

Keywords Studios is an international technical services provider to the global video games industry.  Established in 1998, and now with facilities in Dublin, Tokyo, Rome, Montreal and Seattle, it provides integrated localisation, testing and audio services across 30 languages and 12 games platforms to a blue chip client base in more than 15 countries. It enjoys a leading market position, providing services to 15 of the top 25 most prominent games companies listed by Gartner¹, including Microsoft, Namco Bandai, Konami, Electronic Arts and Square Enix. Key recent titles it has worked on include: Pro Evolution Soccer 2013, Halo 4 and Farmville 2.  Keywords is listed on AIM, the London Stock Exchange regulated market (KWS.L).