24 November 2020

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

Trading Update

Stronger than expected performance despite COVID-19 constraints

Keywords Studios announces today that it expects to deliver a full year adjusted profit before tax* significantly ahead of the current market consensus as a result of continued strong trading since the half year results announcement in September 2020.

Revenue for the year to 31 December is expected to be in line with company compiled consensus of €367m (2019: €326.5m), reflecting robust demand for the Group's services despite previously stated COVID-19 production constraints.  

Adjusted profit before tax* is now expected to be significantly ahead of the company compiled consensus of €46m, at approximately €52m (2019: €40.9m). This reflects good underlying margin improvement, despite the revenue constraints noted above, driven by operational leverage and good cost control, together with a reduction in certain costs due to COVID-19, such as travel.

There will be a trading update from Keywords in late January 2021, with full year results expected to be published in March 2021.

Andrew Day, CEO, commented:

"We are pleased the Group is delivering such a robust performance, with continued organic growth and underlying margin improvement, despite the production constraints in some parts of the business."

* Adjusted profit before tax comprises Profit before taxation as reported in the Consolidated statement of comprehensive income, adjusted for costs including share option expense, costs of acquisitions and integration, amortisation of intangible assets, non-controlling interest, foreign exchange gains and losses, and unwinding of discounted liabilities. In order to present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed is also excluded.

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About Keywords Studios (www.keywordsstudios.com)

Keywords Studios is an international technical services provider to the global video games industry. Established in 1998, and now with 62 facilities in 21 countries strategically located in Asia, the Americas and Europe, it provides integrated art creation, marketing services, software engineering, testing, localization, audio and customer care services across more than 50 languages and 16 games platforms to a blue-chip client base of over 950 clients across the globe. 

Keywords Studios has a strong market position, providing services to 23 of the top 25 most prominent games companies, including Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Konami, Microsoft, Riot Games, Square Enix, Supercell, TakeTwo, Epic Games and Ubisoft. Recent titles worked on include Call of Duty: Modern Warfare, Anthem, Star Wars Jedi: Fallen Order, Assassin's Creed Odyssey, Valorant, League of Legends, Fortnite, Clash Royale and Doom Eternal. Keywords Studios is listed on AIM, the London Stock Exchange regulated market (KWS.L).