Keywords Studios highlights increased demand for development services as coronavirus drives surge in video gaming

Keywords Studios PLC (LON:KWS) has said a surge in video game playing as a result of the coronavirus pandemic is driving “increased demand” for its development services.

In an outlook statement accompanying its final results, the AIM-listed firm also said trading in 2020 had started “in line with market expectation” and that it had only suffered a “limited impact” on its business from the outbreak.

WATCH: Keywords Studios' Andrew Day says business is robust and 'responding positively' to outbreak

Keywords noted that the structural drivers of growth across the video games market had remained during the pandemic and it had entered the current year with “strong growth tailwinds” and the expectation of new game console launches and streaming platforms.

The upbeat outlook was accompanied by figures for the year ended December 31,2019, which saw Keywords report an adjusted pre-tax profit of €40.9mln, up 7.9% on the prior year, while revenues surged 30.2% to €326.5mln.

The firm said the revenue jump had been driven by “strong progress” in functional testing and game development as well as eight acquisitions during the year.

Due to the uncertainty caused by coronavirus, however, Keywords said it is “inappropriate to provide guidance for [2020] at this time” and has decided not to recommend a final dividend for similar reasons.

"Whilst we are seeing some operational disruption to the provision of our services due to the [coronavirus] pandemic, with some of our service lines and locations affected more than others, the underlying drivers of growth across the video games market remain intact. It has also been encouraging to see our clients turningRead More – Source

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