Dublin, Ireland - Keywords Studios, a leading provider of services to the videogames industry, has revealed that the ongoing strikes in the U.S. entertainment sector have started to impact its performance in the early part of the second half of the year. As a result, the company anticipates that its organic revenue growth for the entirety of 2023 could be reduced by up to 2.5%. However, excluding the impact of the strikes, Keywords Studios remains on track to meet its guidance for underlying organic revenue growth and operating margins.
Following an analysis, the company has forecasted that underlying organic growth in the second half will be comparable to the first half, once the strike impact is excluded. Furthermore, Keywords Studios expects operating margins to maintain above 15% for the full year due to effective cost-control measures that significantly mitigate the impact of the strikes.
In regards to financial performance for the first six months of this year, Keywords Studios reported a pretax profit of €23.2 million ($24.9 million), declining from €39.1 million compared to the same period last year. However, revenue experienced a 19% increase to reach €383.5 million, driven by organic growth of 10% and contributions from recent acquisitions.
Despite a decline in margin from 17.5% to 15.4%, adjusted operating profit saw a modest increase of 5.2% to reach €58.9 million.
Additionally, the board of Keywords Studios has declared an interim dividend of 0.85 pence per share, representing a 10% increase from last year.
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