Keywords Studios


£885.6m market cap

1360p last close

Keywords Studios is the leading and most diverse supplier of outsourced services to the games industry. Through regular acquisitions, it is building its scale, geographic footprint and delivery capability. Its ambition is to become the ‘go to’ supplier across the games industry.

Investment summary

Keywords Studios (KWS) is the largest supplier of outsourced services to the games industry. For its interims in September, the company announced strong revenue growth in H119 and, although investment and one-off factors compressed margins, it looks well placed to sustain double-digit EPS growth in the future. Subsequent to the results, the company finalised the acquisition of TV+SYNCHRON Berlin, completed on a new €140m credit facility, and confirmed Jon Hauck as its new CFO, as part of an orderly transition first announced in June.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 151.4 26.6 23.1 30.0 51.8 42.7
2018A 250.8 44.2 37.9 40.1 38.8 26.0
2019E 315.2 48.5 40.0 45.8 33.9 26.6
2020E 349.9 59.8 51.6 59.5 26.1 22.5
Industry outlook

Keywords Studios operates in the global games sector, an industry where change and innovation are the norm. We believe that the dynamics of the industry remain attractive. Looking ahead, we see sustained industry growth (c 9% to 2022) driven by ongoing digital transition and strategic investment in the sector (streaming, eSports), as well as a continuing shift towards outsourcing for large projects.

Last updated on 21/11/2019
Share price graph
Balance sheet
Forecast net debt (€m) 6.7
Forecast gearing ratio (%) 3
Price performance
Actual 18.5 (13.1) 21.4
Relative* 17.4 (14.3) 17.1
52-week high/low 1838.0p/900.0p
*% relative to local index
Key management
Ross Graham Chairman
Andrew Day CEO
David Broderick FD
Joe Quinn Investor relations

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