Keywords Studios Plc Share News (KWS)

(Alliance News) - Keywords Studios PLC on Thursday posted a first-half earnings rise with the video game services provider seeing "strong demand" due to Covid-19.

The company also unveiled a new acquisition, boosting its presence in the US West Coast.

Revenue in the six months to June 30 was up 13% year-on-year to EUR173.5 million from EUR153.2 million. On an organic basis, revenue climbed 8.0%.

Pretax profit jumped 66% to EUR11.1 million from EUR6.7 million a year earlier.

The company noted "strong demand for most of our services throughout the period". Lockdowns meant leisure facilities were forced to close during the six months ended June 30, meaning more people turned to video games to keep themselves entertained.

Keyword did note some "Covid-19 related supply side constraints", however.

The company decided against an interim payout, after releasing a 0.58 pence dividend a year earlier.

Also on Thursday, Keyword said it has agreed to buy California-based game development services provider Heavy Iron Studios Inc for up to USD13.3 million.

It will pay USD4 million up front, USD500,000 in shares and a deferred consideration of up to USD8.8 million contingent on performance-based targets.

Keyword Chief Executive Officer Andrew Day said: "We welcome the extremely experienced and talented Heavy Iron team to the Keywords family. The addition of Heavy Iron to the group further strengthens and scales our game development service line."

Shares in the company were 5.3% lower at 2,138.00 pence each in London on Thursday morning.

By Eric Cunha; ericcunha@alliancenews.com

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