Keywords Revenues Jump 55% in 2015 on Rapid-fire Acquisitions

On April 5, 2016, Dublin-based game globalization firm Keywords Studios reported its full-year results for the year ending December 31, 2015.

Including its recent acquisitions, Keywords posted a 55% increase in group revenue to EUR 58m (2014: EUR 37.3m). Profit before tax and various charges grew by 57% to EUR 8m (2014: EUR 5.1m).

Furthermore, Keywords reported a 20% growth through acquisitions, “calculated on the basis of revenues being included for 2015 acquisitions from the date of acquisition and for the same period in the prior year.”

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In a nutshell, the company’s core business is growing nicely, while acquisitions have boosted revenues and are earnings accretive.

Keywords also noted a 70% increase among clients that use “three or more Group services.” Cited as new client wins were Oculus VR, Amazon, Gearbox, Fincon, Net Marble, and Obsidian Entertainment.

In terms of outlook, the company said “trading in the first [two] months of the current financial year has been in line with the Board’s expectations.”

On the Prowl

Last Friday, Slator reported on Keywords’ big push into Asia. Now, a day after announcing its 2015 financial results, the company also said it was buying the 50% of game localizer Kite Team it did not already own. Keywords will pay Kite Team shareholders a total of EUR 1.15m.

According to Keywords, the announcement came 20 months earlier than provided for under the original terms of sale so it can “deliver the operational benefits of the full integration of Kite Team into Keywords.” With its acquisition of Kite Team, which has studios in Madrid and Mexico City, Keywords said it got “further penetration of South America.”

Under the original terms, the remaining 50% of Kite Team would have cost Keywords no less than EUR 0.8m and no more than EUR 1.8m “calculated by reference to the profit before interest and tax of Kite Team in the years to 31st December 2017.”

Aside from Kite Team, Keywords also listed the following acquisitions in its London Stock Exchange filing: Canada-based IT support firm Alchemic Dream, Rio-based localization and audio firm Reverb, and Portland-based graphic arts agency Liquid Development.

Post-period-end acquisitions cited were a “strategic outsourcing deal” with Ankama “with the benefit of a four-year contract” as well as its purchase of Beijing art agency Mindwalk Studios.