AUS
NZ
UK
CA
USA
IND
Highlights
- Keywords Studios has posted approximately3% YoY increase in final dividend attributable for FY22.
- The company registered 34.8% YoY revenue growth, while profit before tax increased by 41.7% YoY in FY22.
- KWS has completed the acquisition of Hardsuit Labs Inc, further expanding its footprint in the US.
- The company has strengthened its Create, Engage & technology and delivered five acquisitions for a total maximum consideration of €140 million during FY22
Keywords Studios PLC (LSE:KWS) is an FTSE AIM UK 50 Index listed company engaged in the business of providing creative and technical service platforms for the video games industry. It is driven by the vision to build world-leading assets which video game and related interactive content creators require.
The company serves a huge client base as an external development partner, rendering services across eight lines - Art Services, Game Development, Audio Services, Functionality QA, Localization, Localization QA, Marketing Services and Player Support.
FY22 Financial Highlights
In fiscal year 2022, the company recorded a double-digit dividend growth of 10.3% as compared to FY21.
Also, the revenue of the firm jumped by approximately 34.8% year-on-year, while profit before tax increased by 41.7% YoY in FY22.
Keywords Studios recently completed the acquisition of Hardsuit Labs Inc. for a consideration of USD 15 million. The acquisition marks its expansion in the United States and enhances its AAA expertise to Create service line.
Overall, the company has strengthened its position with Create, Engage & Technology strategy, and delivered five acquisitions for a total maximum consideration of €140 million during FY22. Moreover, KWS increased its market share and accelerated the trend of external service provision. Overall, the Company is well-funded to deliver the value accretive acquisition strategy with several M&A opportunities in the pipeline.
Top 10 Shareholders
The top 10 shareholders collectively form ~43.85% of the total shareholdings of the company. Capital Research Global Investors holds the maximum number of shares with ~8.36% shareholding, followed by Franklin Equity Group with ~6.50% shareholding, as depicted in the chart below. Such a high shareholding by big boys indicate confidence of institutional investors in the company’s future prospects.
Stock Price Performance
Despite reporting good numbers for FY22, KWS shares have witnessed selling pressure in the recent past, in-line with the decline in the broader technology sector. The stock has witnessed a decline of around 21.03% in the last one month and over the last 6 months, it has reduced by 32.76%. The stock has a 52-week low and 52-week high of GBX 1,915.00 & GBX 3,056.00, respectively and is currently trading below the average of 52-week high-low.
(Data Source: EODHD/Others, Analysis done by Kalkine Group)
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 05 June 2023. The reference data in this report has been partly sourced from EODHD/Others.
