Another beat and raise
Keywords Studios (LON:KWS): Full-year revenues and PBT are both expected to come in 3% above our forecasts, which were upgraded in November, suggesting like-for-like growth in the region of 20%. We upgrade our FY17 revenue and EPS estimates by 2% and 4% respectively, but with the company attractively positioned within a generally buoyant gaming technical services sector, we see clear scope for the organic upgrade trajectory to continue through both organic performance and acquisitions.
Broad-based strength
Full-year revenues and PBT are expected to be €96.6m and €14.8m vs our old estimates of €93.5m and €14.3m, respectively. The upgrade is nearly entirely underlying, with the December acquisition of Sonox for €650k the only M&A activity since we last upgraded our estimates in November and suggests like-for-like growth at close to 20%. The strength is broad based, with Localisation, Art and Community Management (the latter off a low base) all performing particularly well. Net cash stands at €9m (€17m cash, €8m debt) down from €17.3m last year, with solid cash generation offset by eight acquisitions for a net cash spend of €20.7m.
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