Shares in Irish video game firm Keywords Studios jump on dividend return

Revenues rose by 14.4% last year to €373.5m

Shares in Irish video game content provider Keywords Studios jumped by more than 4% on the company reporting a strong set of figures for 2020 and saying it is preparing to reinstate shareholder dividends.

The Dublin-based company provides design, sound, and cultural market localisation services for many of the world’s top console game manufacturers including Sony, Bethesda, and Capcom.

Keywords said its revenues jumped 14.4% last year to €373.5m. Even with its heavy acquisition-led growth strategy, organic revenue grew nearly 12%.

Adjusted pre-tax profits rose by 34.5% to €55m. 

The company owns companies in mainland Europe and the Americas, and earlier this month entered the Australian market through the purchase of Melbourne-based games developer Tantalus.

The company had net cash of almost €103m and undrawn credit of €100m at the end of 2020, despite spending nearly €40m on acquisitions last year. 

It said it remains well-funded to deliver on its ongoing acquisition strategy and has a healthy pipeline of opportunities. It also said it intends to resume its progressive dividend policy this year.

"The group's strong position in the buoyant video games market, our increasingly sought-after 9,000 people strong resource base, a robust business model that has proven capable of continued growth in the face of the pandemic, together with our financial strength, places us well for further growth and long-term success," said joint interim CEO Jon Hauck.