First-half revenues and profit rise at Keywords Studios

Video-game specialist says demand for its services remains strong

Andrew Day, chief executive of Keywords Studios. Photograph: Dara Mac Dónaill

Andrew Day, chief executive of Keywords Studios. Photograph: Dara Mac Dónaill


Video-game specialist Keywords Studios said first-half revenues and profit were expected to increase in the first six months of 2020 as demand for its services remained strong.

The Dublin-headquartered company said revenues for the first six months of the year would be approximately €173.5 million, a 13 per cent rise year-on-year.

Adjusted earnings before interest, taxation, depreciation and amortisation is expected to be around €30.8 million, an increase of 19 per cent compared to the prior year, while adjusted pre-tax profit for the six months rises 18 per cent to €21.7 million.

The group said the disruption caused by Covid-19 had held back certain service lines, particularly in its testing and audio businesses.

However, Keywords said most of its audio studios had reopened from June, with some activities in its testing studios resuming from July.

“Demand for video games content has accelerated during the pandemic, which has positively expanded the addressable market for our clients,” said Andrew Day, chief executive of Keywords.

“We expect to see continued strong demand for our services given the industry’s structural growth drivers, the continuing trend towards outsourcing, the launch of next-generation games consoles later in 2020, and the further development of new streaming platforms.”

At the end of June the group had net cash of €101 million and €100 million of an undrawn committed revolving credit facility.


Keywords completed a £100 million placing in May, supported by shareholders and new investors.

Keywords said it would allow the company to continue to execute its mergers and acquisitions strategy while maintaining a strong balance sheet.

It has since completed the acquisition of Unreal Engine development specialists Coconut Lizard, and it is engaging with a number of potential targets.

“Through both this strategy and organic growth the group is well placed to take a leading share of the increasingly outsourced video-games services market,” Mr Day said.

“We fully expect to complete further acquisitions from the strong and attractive pipeline of opportunities that we are currently reviewing over the months ahead.”