Keywords Studios hikes dividend after strong Q1

(Sharecast News) - Technical and creative services firm Keywords Studio hiked its interim dividend on Wednesday as it posted a rise in revenue and pre-tax profit.
Revenues rose 39.3% to €153.2m in the six months ended 30 June, while adjusted pre-tax profits were 14.3% higher at €18.4m. Like-for-like revenue at constant currency exchange rates increased 17.3% to €146.4m.

Earnings before income, tax, depreciation and amortisation came to €25.8m, while gross margins contracted slightly to 36.1% from 37.4%.

Keywords' net debt soared to €9m from the €100,000 reported at the same time a year earlier.

The AIM-listed group, which made four new acquisitions during the half, also announced a 10% increase in its interim dividend to 0.58p per share.

Keywords warned that although trading in the second half had started well, with stronger margins expected for the period, organic revenue growth would be "slightly slower" than it had been in the first six months of the year.

Chief executive Andrew Day said the group was well placed to deliver full-year revenues "at the upper end of market expectations", while profit forecasts remained broadly unchanged.

In a separate announcement, Keywords said it had agreed to acquire German dubbing firm TV+SYNCHRON Berlin for €2.8m in cash and €900,000 new ordinary shares.

Keywords said the acquisition will strengthen the group's audio services in the German video game and entertainment voice-over recording market and anticipates that it will also generate revenues of €4.1m in its current trading year.

As of 0845 BST, Keywords shares had dipped 3.95% to 1,360p.