Profits soar as Keywords Studios hails strong performance
Half-year profits have grown to almost €16 million at Keywords Studios, the technical services provider to the video games industry, after a strong performance.
Chief executive Andrew Day said the listed company's performance so far this year has been "very encouraging".
Keywords Studios' revenues for the six months to 30 June 2018 are expected to be around €109.9 million, an increase of 72 per cent from a year earlier.
The firm is also posting an anticipated 66 per cent surge in adjusted pre-tax profits to €15.9 million.
"We have made significant investments, most notably in enlarged facilities and senior and mid-level management, which are further supporting our organic growth in the second half and beyond," Day said.
Keywords said its 11 acquisitions in 2017 and seven in 2018 are performing in line with expectations. Its largest purchase to date of QA and support service provider VMC completed in October 2017 for $66 million.
Day added: "Despite the incorporation of the lower growth and margin VMC business, our largest acquisition to date, and a weaker US dollar, we have delivered a first half in line with our expectations while also strengthening the business for the future.
"With the benefits of a full six months contribution from first half acquisitions, a strengthening dollar, a healthy pipeline of activity and expanded capacity to deliver it, we anticipate a strong second half performance in line with current market expectations for the full year."
Keywords has also continued to strengthen its management team with some changes to its senior management team including the hiring of a chief marketing officer and the appointments of an engineering service line director, global operations director and a chief commercial officer.
The group invested nearly €10 million for the five acquisitions made in the first half of the year and is sizing up further deals in 2018.