(Alliance News) - Keywords Studios PLC on Wednesday said interim profit nearly doubled due to high customer demand in a buoyant video games market.
Pretax profit for the six months that ended June 30 is expected to be around EUR40 million, up 80% from EUR21.7 million a year previously. Expected revenue is EUR238 million, 37% higher than EUR173.5 million a year before.
The Dublin-based video game developer and services provider said it had seen increases in the number of gamers during the pandemic which had not declined even as national lockdown restrictions eased.
"Keywords has made a strong start to the year, continuing the momentum seen in the second half of 2020, with demand for our services being driven by a buoyant video games market, structural trends towards outsourcing, and a renewed focus on content creation," commented Joint Interim Chief Executive Jon Hauck.
Looking forward, Keywords noted that it expected strong demand to continue across most service lines. The momentum underpinned its confidence in delivering an annual performance at least in line with market expectations, it added, albeit with growth rates and margins expected to moderate against stronger second half 2020 comparatives, and as some costs return with the easing of restrictions.
The group is "well placed" to return to a progressive dividend policy in 2021, it highlighted, helped by strong cash generation and EUR100 million available under its undrawn committed revolving credit facility.
In other news, Keywords said it had identified a "number of high calibre candidates" in its ongoing search for a new permanent chief executive following the resignation of Andrew Day in June, after 12 years at the helm.
Shares in Keywords were down 3.6% at 2,826.00 pence in London on Wednesday.
Keywords will announce its interim results on September 15.
By Will Paige; willpaige@alliancenews.com
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Keywords Studios Plc (KWS)