Keywords Studios (LSE: KWS) Rewards Investors with 10.4% Higher Dividend After Double-Digit Revenue Growth in FY23

2 min read | January 30, 2024 03:13 AM AEDT | By Team Kalkine

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Keywords Studios (LSE: KWS) Rewards Investors with 10.4% Higher Dividend After Double-Digit Revenue Growth in FY23 — Image source: Shutterstock

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Highlights

Keywords Studios posted a 13% year-on-year increase in revenue in FY23.

KWS secured 4% YoY revenue growth to €383.50 million in H1 FY23, due to sustained demand for high quality content.

It paid an interim dividend of 0.85 pence per share in October 2023, with an ex-dividend date of 05 October 2023.

FTSE AIM UK 50 Index listed Keywords Studios PLC (LSE:KWS) offers creative and technical service platforms for the video games industry.

For the full fiscal year 2023, the company posted a 13% year-on-year increase in revenue, despite a mixed industry back-drop and the US entertainment strikes. Also, there has been a 17% YoY surge on a constant currency basis.

In the first half of the fiscal year 2023, KWS secured 19.4% YoY revenue growth to €383.50 million, as compared to €321.10 million in H1 FY22, due to sustained demand for high quality content. Its adjusted EBITDA witnessed a 10.3% YoY surge to €77.3 million in H1 FY23 from €70.10 million in H1 FY22.

Furthermore, Keywords Studios clocked a 10.4% year-on-year surge in interim dividend. It paid an interim dividend of 0.85 pence per share in October 2023, with an ex-dividend date of 05 October 2023.

The company believes that its well-positioned for some significant merger and acquisition opportunities, as its Revolving Credit Facility has surged to USD 400 million, with maturity extended to 2027.

For the full fiscal year 2024, KWS is expecting its adjusted operating margins to be higher than 15%. It is anticipating an adjusted cash conversion of more than 80%, following higher cashflows in H2 FY23. In FY23, five high-quality acquisitions have been completed by the firm for a combined consideration of €225 million. KWS has closed FY23 with a net debt position of around €68 million.

Top 10 Shareholders:

Approximately 42.70% of the total shareholding of the company is held by its top ten shareholders. While Capital Research Global Investors is the biggest shareholder in the company with around 8.33% shareholding, Liontrust Investment Partners LLP owns over 5.3% shareholding in KWS.

Stock Price Performance

KWS’ stock price has dropped by around 6.83% in the last one month. It has decreased by approximately 12.54% over the last six months. The stock’s 52-week low and high price stand at GBX 1,252.00 and GBX 3,000.00, respectively.

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 25 January 2024. The reference data in this report has been partly sourced from EODHD/Others.

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