Keywords Studios Raises Profit Expectations Amid Pandemic Gaming Boom


Eywords Studios stock was up Monday morning after the games company told investors annual profits are expected to exceed consensus in a “buoyant” video game market.

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

Keywords, which was founded in 1998 and has a market cap of over £ 2 billion, was boosted by the boom in pandemic lockdown games. Today, the company said it has enjoyed continued strong demand for new gaming content and money savings through the implementation of 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 good cash flow and revenue growth” and said: “Keywords Studios investors received a Christmas present in advance.

“We feared that the [lockdown gaming] the boom would end when restrictions were relaxed, but as we expected, at least a good chunk of that increased demand persists for now.

“With new controls on socializing outside the home now looming with the spread of the Omicron variant, it is likely that the game will gain popularity again. “

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