By Samuel Indyk
Investing.com – Keywords Studios (LON:KWS) said first half revenues are expected to increase by approximately 23%, with all service lines performing well against the comparative period last year when the pandemic constrained some revenues.
Adjusted profit before tax is expected to be around 80% higher to approximately €40 million as the company has benefitted from robust demand for the group’s services amid a “buoyant” video games market.
The group said it has delivered a strong underlying margin as it benefits from a reduction in certain costs due to Covid-19, primarily resulting from higher proportion of remote working and lower costs related to travel, business development, and marketing.
“Keywords is enjoying the spoils of a very active gaming market,” said Hargreaves Lansdown (LON:HRGV) Senior Equity Analyst Sophie Lund-Yates. “As a supplier to the gaming industry it doesn’t face a nail-biting wait to see how individual titles do, rather it gets paid whatever the outcome.”
CEO Transition
The company is still in search of a new CEO following the news that Andrew Day had brought forward his retirement plan due to a health scare. The company said it will provide an when appropriate, but for now, Jon Hauck and Sonia Sedler will continue as joint interim CEOs.
“The search for a new CEO continues, and it’s a quandary that shareholders will be hoping is solved soon,” Lund-Yates added.
“Keywords is doing well, propped up by very helpful market conditions. But even the best-placed ship needs a firm captain if it’s to prosper.”
AT 10:30BST, shares in Keywords Studios were trading lower by 2.9% at 2,846 pence per share.