Keywords Studios: 2023 Full Year Results

Key insights

6 takeaways

01
Group revenue grew 13% to €780m in 2023, and the company describes this as growth ahead of the industry in a tougher year.See it on page 3
02
The Create division's organic revenue grew 17.3% in 2023, while Globalize's organic revenue fell 4.3%.See it on page 12
03
Adjusted operating profit rose 6.5% to €122.0m, with a 15.6% margin, which the company says was stronger than guided.See it on page 17
04
2023 was a record year for M&A, with total maximum potential consideration of €225m across five deals.See it on page 32
05
The adjusted cash conversion rate was 82.3% in 2023, compared with 100.1% in 2022.See it on page 18
06
For 2024, the company expects adjusted operating profit margins to remain above 15%.See it on page 21

Summary

Keywords Studios plc presents its 2023 full year results, covering the group's performance across its Create, Globalize and Engage divisions, its M&A activity, cash flow, balance sheet and 2024 outlook. Group revenue reached €780m in 2023, up 13% reported, with organic growth of about 9% before US strikes & FX (about 6% reported organic growth, per the footnote). Adjusted operating profit was €122m, a 15.6% margin, which the company describes as ahead of guidance. The company completed a record year of M&A, with total maximum consideration of €225m across five deals, and reported an adjusted cash conversion rate of 82%. Net debt stood at €68m, equal to 0.4x net leverage as stated on the slide. The Create division grew revenue to €336.1m with organic revenue growth of 17.3%, while Globalize revenue fell 7.1% to €279.5m with organic revenue down 4.3%. Engage revenue rose 44.2% to €164.8m, with organic growth of 2.3%. For 2024, the company expects strong revenue and profit growth, with adjusted operating margins expected to remain above 15%.