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Keywords Studios raises profit expectations as pandemic gaming boom continues

·1-min read
Gaming has boomed in the pandemic   (PA)
Gaming has boomed in the pandemic (PA)

Keywords Studios' stock was up on Monday morning after the gaming firm told investors full-year profits are set to come in ahead of consensus amid a "buoyant" video games market.

The AIM-listed company, which has worked on titles including Call of Duty: Modern Warfare and Star Wars Jedi: Fallen Order, said it expects to report adjusted pre-tax profits of at least €85 million (£72.6 million) for the year to December 31 - up 55% year-on-year.

The London-listed Irish firm said revenues are likely to be up at least 35% at €505 million.

Keywords, which was founded in 1998 and has a market cap of over £2 billion, has been boosted by the pandemic’s lockdown gaming boom. Today the company said it has benefited from continued strong demand for new gaming content, and from saving cash due to implementing remote working.

Shares were up 4.6%, or 116p, to 2626p, by mid-morning.

Matt Britzman, Equity Analyst at Hargreaves Lansdown, noted the company’s “healthy cash pile and good revenue growth” and said: “Keywords Studios’ investors have been given an early Christmas present.

“There were concerns that the [lockdown gaming] boom would dry up when restrictions eased, but as we thought, at least a good chunk of that increased demand is sticking around for now.

"With fresh controls on socialising outside of the home now looming with the spread of the Omicron variant, it’s likely gaming once again will surge in popularity.”

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