RNS Number : 8083W
Keywords Studios PLC
03 August 2018

3 August 2018
Keywords Studios plc ("Keywords Studios" or "the Group")
Half year trading update - CORRECTION
The following amendment has been made to the 'Half Year Trading
Update' announcement released on 3 August 2018 at 7:00am under
RNS No 6958W.
The original statement stated that at 30 June 2017 the Group had nonet debt. The date has been corrected to 30 June 2018.
All other details remain unchanged. The full amended text is shown
below.

Keywords Studios plc ("Keywords Studios" or "the Group")
Half year trading update

A strong first half performance delivered a 66% increase inadjusted PBTKeywords Studios, the international technical services provider to theglobal video games industry, is pleased to provide an update on
trading for the six months ended 30 June 2018.
The Group has performed strongly during the ﬁrst half, withpreliminary unaudited revenues for the period expected to be up by
72% to €109.9m (H1 2017: €63.8m) and an anticipated 66% increasein adjusted PBT* to €15.9m (H1 2017: €9.6m). This was achieved
despite the incorporation of the historically lower margin VMCbusiness, as well as a marked weakening of the US dollar, in whichapproximately 60% of the Group's revenues are denominated,against the Euro with average exchange rates having declined 12%
between the comparable periods.
The 11 acquisitions made during 2017 and the 7 acquisitions madesince the beginning of 2018 are all performing in line withexpectations. The Group's largest acquisition to date, VMC,
completed on 30 October 2017 and has been well integrated with therest of the Group. It is starting to beneﬁt from being part of a larger
group focused on similar services, with a number of its client
relationships having been strengthened, while cost synergies areleading to improved operating margins.

The second half of 2017 and the ﬁrst half of 2018 saw us invest
substantially in expansion of the Group's facilities in Montreal, Dublin,London, Liverpool, Madrid, Katowice, New Delhi, Zhengzhou, Manila
and Tokyo, which are now providing additional capacity to support thehigher levels of activity we anticipate in the second half given thedemand we are seeing from our customers.
Keywords has also continued to strengthen its management teamwith some changes to its senior management team including thehiring of a Chief Marketing Oﬃcer, and the appointments of anEngineering Service Line Director, Global Operations Director and aChief Commercial Officer, as announced on 10 July 2018.
The Group has invested net cash of nearly €10.0m for the 5acquisitions made in the ﬁrst half of the year and we are actively
reviewing a number of high quality acquisition opportunities, in linewith our acquisition strategy. Signiﬁcant headroom in our new €105m
credit facility with Barclays Bank, Lloyds Bank and HSBC (announcedon 5 June 2018), combined with continuing strong cash generationand the judicious use of Keywords shares to part-fund acquisitions
where appropriate, leaves the Group well placed to complete further
selective acquisitions this year. At 30 June 2018, the Group had nonet debt.
Andrew Day, Chief Executive of Keywords, commented:"Our progress so far this year has been very encouraging. We havemade signiﬁcant investments, most notably in enlarged facilities andsenior and mid-level management, which are further supporting ourorganic growth in the second half and beyond. Despite theincorporation of the lower growth and margin VMC business, ourlargest acquisition to date, and a weaker US dollar, we have delivered
a ﬁrst half in line with our expectations while also strengthening thebusiness for the future.
"With the beneﬁts of a full six months contribution from ﬁrst halfacquisitions, a strengthening dollar, a healthy pipeline of activity andexpanded capacity to deliver it, we anticipate a strong second half
performance in line with current market expectations for the fullyear."Keywords Studios will provide a further update on trading with its halfyear results which it expects to announce in mid-September.

* The Group reports adjusted PBT before acquisition and integration
expenses, share option charges, amortisation of intangibles andforeign currency gains
For further information, please contact:
Keywords
Studios (www.keywordsstudios.com)
Andrew Day, Chief Executive Officer
David Broderick, Chief Financial Officer
Numis (Financial Adviser)+353 190 22 730

020 7260 1000

StuartSkinner/KevinCruickshank (Nominated Adviser)
James Black / Tom Ballard (CorporateBroker)
MHP Communications (Financial PR)
Katie Hunt /Ollie Hoare020 3128 8100

Certain information contained in this announcement would haveconstituted inside information (as deﬁned by Article 7 of Regulation(EU) No 596/2014) prior to its release as part of this announcement.
About Keywords Studios (www.keywordsstudios.com)
Keywords Studios is an international technical services provider to theglobal video games industry. Established in 1998, and now with over
42 facilities in 20 countries strategically located in Asia, the Americas
and Europe, it provides integrated art creation, software engineering,testing, localisation, audio and customer care services across morethan 50 languages and 16 games platforms to a blue chip client baseof approximately 650 clients across the globe. It has a strong market
position, providing services to 23 of the top 25 most prominent games
companies, including Activision Blizzard, Bandai Namco, Bethesda,Electronic Arts, Konami, Riot Games, Sony, Square Enix, Supercell,TakeTwo, and Ubisoft. Recent titles worked on include Uncharted 4: A
Thief's End, Call of Duty: WWII, Mortal Combat X, Assassin's Creed
Origins, Battleﬁeld 1, League of Legends, Fortnite, Clash Royale, andMobile Strike. Keywords Studios is listed on AIM, the London Stock
Exchange regulated market (KWS.L).

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