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Keywords Studios (KWS) investor relations material
Keywords Studios H1 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue grew 6.6% year-over-year to $440.4m, driven by acquisitions, while organic revenue declined 1.9% due to project cancellations and delays in Create and lower activity in Globalize.
Adjusted EBITDA fell 6.6% to $77.8m, with margin down to 17.7% from 20.2% as cost savings from restructuring are expected to be realized in H2.
Operating loss of $18.7m (vs. $31.7m profit in H1 2023) was impacted by $47m in one-off costs related to the EQT acquisition and Globalize restructuring.
Shareholders approved a £2.1bn cash acquisition by EQT at £24.50/share, with delisting expected in October 2024.
Financial highlights
Group revenue: $440.4m (H1 2023: $413.3m), up 6.6%.
Adjusted operating profit: $57.4m (H1 2023: $63.5m), margin 13.0% (H1 2023: 15.4%).
EBITDA: $15.4m (H1 2023: $65.3m), impacted by $47m in exceptional items.
Adjusted earnings per share: 49.77c (H1 2023: 59.92c); basic loss per share: (38.82)c (H1 2023: 19.93c).
Net debt: $102.4m (Dec 2023: $75m), with undrawn facilities of $268m.
Outlook and guidance
Confident in delivering overall revenue growth in 2024, with H2 expected to be stronger as industry content creation recovers.
Margins expected to improve in H2 as cost savings and higher volumes materialize.
Active M&A pipeline and continued focus on cost management.
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