Keyword Studios shares jump as chief reaffirms 1bn Euro revenue target despite Hollywood film strikes
Keyword Studios share price increased more than eight per cent on Wednesday after the firm showed resilience in a year marred by Hollywood’s film strikes.
Group revenue increased 13 per cent to €780m (£666m), alongside a 10 per cent rise in the final dividend per share offering.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 7.8 per cent, while adjusted operating profit increased 6.5 per cent to €122m.
The strong performance was driven by five major acquisitions totalling around €225m and marking a record year for M&A at the video game services firm.
Bertrand Bodson, Chief Executive Officer of Keywords Studios, said: “In what was a difficult year for the industry, we delivered resilient performance in 2023 and continued to extend our market leadership position, reflecting our role as a diversified enabler of the industry.
“Whilst the industry back-drop remains tough in the near term, our diversified technology-enabled offering and strong client relationships means that we are incredibly well-positioned to continue to grow our market share as we support clients in the creation of ever more exciting and immersive experiences.”
He added:” We will continue to successfully navigate the current market conditions and are excited by the opportunities that lie ahead as we deliver against our plans and become a +€1bn revenue business in the coming years.”
Strikes from actors and scriptwriters brought the centre of the global film industry to a grinding halt throughout much of 2023. The protests began in May over fair pay and job protection from AI technology and lasted until November.
“Our US businesses saw substantially reduced work volume, leading to around €20m in lost second-half 2023 revenue,” Bodson said in a statement.
“Whilst the strikes are now over, there remains considerable uncertainty around the pace of ramp-up in 2024, as the industry returns to normal, given the logistics involved in each project. However, the Group believes it is very well placed to benefit from the surge in demand, as the industry looks to increase its content output to meet viewer needs.”
By 8.45 this morning its shares were up more than 8.8 per cent.