Keywords Studios Gears Up for Private Ownership with Positive Revenue Outlook

2 min read | September 16, 2024 01:54 AM PDT | By Team Kalkine Media

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In the communication sector, Keywords Studios PLC has expressed confidence in achieving overall revenue growth for 2024, according to its interim trading statement released on Monday. This optimism comes as the company is on the verge of being acquired by private equity group EQT in a significant £2.1 billion deal.

Interim Performance and Future

Keywords Studios (OTC:KYYWY), a prominent player in the video game services industry, reported a 1.9% decline in organic revenues for the first half of 2024, totaling $440.4 million (£334.6 million). Despite this decrease, the company anticipates stronger performance in the latter half of the year as the gaming industry recovers from previous slower content creation trends.

Adjusted operating profit also experienced a decline, dropping 9.6% to $57.4 million. However, the company maintained its margins at 13%, aligning with the forecasted targets. This reflects the company’s ability to manage operational costs effectively despite the challenges faced in the initial part of the year.

Upcoming Acquisition and Impact

Keywords Studios is preparing for a major shift as it moves towards being taken private by EQT. The transaction, valued at £2.1 billion, is expected to be finalized on October 23, with the company's shares scheduled to be delisted from AIM the following day. This transition marks a significant change for Keywords Studios, which has been publicly listed since 2013 and has seen substantial growth during this period.

Bertrand Bodson, CEO of Keywords Studios, acknowledged the support received from shareholders over the years, attributing much of the company’s growth to their backing. He highlighted the transformative impact of the acquisition on the company’s future direction, emphasizing it as an exciting new chapter.

Transition to Private Ownership

The upcoming delisting of Keywords Studios from AIM signifies the end of its tenure as a publicly traded entity. The private equity acquisition is poised to offer the company new avenues for growth and development, allowing it to pursue its strategic goals without the pressures of public market scrutiny.

This move underscores the significant changes on the horizon for Keywords Studios as it transitions to a new phase under private ownership.

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