Capital Markets Day 2022: Keywords Studios

Key insights

7 takeaways

01
Keywords reports FY21 revenue of €512.2m, up 37.1%, with adjusted PBT of €86.0m and organic revenue growth of 19.0%.See it on page 7
02
The company says it works with 23 of the top 25 games companies by revenue and 10 of the top 10 mobile games publishers by revenue.See it on page 10
03
Keywords estimates its FY21 share of the outsourced video game services market at 5%, against a market it sizes at c.$11bn.See it on page 15
04
Keywords targets a medium-term model of 10%+ organic revenue growth, around 15% adjusted PBT margin and 80%+ cash conversion.See it on page 110
05
The company reports 56 value-creating acquisitions since IPO and says its M&A pipeline identifies +90 opportunities, from which it selects the highest quality.See it on page 19
06
In its Microsoft case study, Keywords reports 913 projects ingested and 859 projects delivered following go-live on 18 May 2022.See it on page 55
07
The company expects to deliver FY22 performance in line with expectations and states it is confident of this outlook.See it on page 119

Summary

This is a Keywords Studios Capital Markets Day presentation from June 2022, covering the company's market position, 2021 final results, growth strategy, technology, talent, adjacent markets, M&A and medium-term growth model. Keywords reports FY21 revenue of €512.2m (up 37.1%) and adjusted PBT of €86.0m (up 56.4%), with organic revenue growth of 19.0%. The company operates in 23 countries with more than 70 studios and over 11,000 employees, and it cites a video game services market of c.$35bn, of which c.$11bn is outsourced. Its 2021 market share of outsourced game services is stated as 5%.

The presentation describes an inorganic growth engine, with 56 value-creating acquisitions since IPO and a pipeline of +90 identified opportunities. The company states a medium-term model of 10%+ organic revenue growth, adjusted PBT margin of around 15%, 80%+ cash conversion and €50-100m acquisition spend per year. It sets a medium-term goal of €1bn+ revenue.

The document also presents a Microsoft case study in which automated translation workflows went live on 18 May 2022, with the company reporting 913 projects ingested and 859 delivered in the early deployment stats.