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18 Sep 2019 | 07:33

Keywords Studios reports growth in revenue; margins shrink slightly

Keywords Studios announced that first half revenue, including contribution from acquisitions, increased by 39.3% to €153.2m (H1 2018: €110.0m).

Gross profit margin was down from 37.4% to 36.1% as a result of rapid recruitment and training, staffing of new facilities, and the impact of one significant project brought in through an acquisition.

The company continues to invest in their platform as they wish to capture accelerating outsourcing demand in the growing video games market.

To support this, the company signed a new revolving credit facility agreed for up to €140m with Barclays, HSBC, Citibank and Silicon Valley Bank.

Andrew Day, Chief Executive of Keywords Studios, commented: 'Trading in the second half has started well, with continued strong performances from our Game Development, Functional Testing and Art Creation service lines in particular. Overall, this leaves us well placed to deliver revenues for the full year at the upper end of current market expectatons with our profit expectations broadly unchanged.'

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