KEYWORDS STUDIOS PLC ANNUAL REPORT AND ACCOUNTS 2015
Continued 
growth
Annual Report and  
Ac c oun ts  2015 Keywords is the leading 
international technical 
services provider  
to the global video 
games industry.
Established in Dublin in 1998, it now has operations 
in Rio de Janeiro, Montreal, Mexico City, Los Angeles, 
Seattle, Portland (Oregon), Tokyo, Singapore, New 
Delhi, Pune, Rome, Milan, Barcelona, Madrid, London, 
Dublin, Shanghai, Manila and Beijing.
It provides art creation, audio recording, localisation, 
testing, and customer support services across 50 
languages and games platforms to a blue chip client 
base in more than 15 countries.
Its customers comprise many well-known multi-
national games publishers and developers including 
20 out of the 25 largest games companies  
by revenue.
*
 “2015 saw another year of good progress  
for Keywords, in which the Group delivered 
strong like for like growth, supplemented  
by selective acquisitions which have  
further expanded our range of services  
and geographical reach and reinforced our  
market leading position. We therefore look 
forward to 2016 and beyond with confidence.”
Ross Graham
Chairman
Sunny Yú from Evolve
Highlights
OPERATIONAL HIGHLIGHTS
Strong like for like
**
 growth of 20%
70% increase in number of clients using three  
or more Group services
New client wins have included Oculus VR,  
Amazon, Gearbox, Fincon, Net Marble and  
Obsidian Entertainment
Significantly extended service capabilities and 
geographical reach through four acquisitions:
• Alchemic Dream provided entry into customer 
support services 
• Rio de Janeiro based localisation and audio firm, 
Reverb, provided first office in the fast growing 
South American market
• Madrid and Mexico City based audio and 
localisation firm, Kite Team, provided further 
penetration of South America
• Portland, Oregon based Liquid Development 
increased scale in the buoyant art creation market
* Source: NewZoo, December 2015.
** Calculated on the basis of revenues being included for 2015 acquisitions from the date  
of acquisition and for the same period in the prior year. 26%
12%
13%
39%
32%
14%
11%
2%
14%
30%
7%
2014
€37.3m
2015
€58.0m
 
 
 
 
 
 
2013 2014 2015
€16.2
€37.3
€58.0
2013 2014 2015
1.00
1.10
1.21
2013 2014 2015
€2.5
€5.1
€8.0
2013 2014 2015
5.76
8.54
12.71
201 4 – 2015
FINANCIAL HIGHLIGHTS
FINANCIAL TRACK RECORD
Split of revenue by service line
 Functional Testing
 Localisation Testing
 Localisation
 Audio Services
 Customer Support
 Art Creation
Group revenue (m)
Group revenue (m)
€58.0m
h
55%
Adjusted profit before tax (m) 
Adjusted profit before tax (m) 
€8.0m
h
57%
Total dividend (p)
Total dividend (p) 
1.21p
h
10%
Adjusted basic earnings per  
share (c)
Adjusted basic earnings per  
share (c)
12.71c
h
49%
Visit the website for further information 
www.keywordsstudios.com
STRATEGIC REPORT
01-25
Highlights 2014-2015 01
At a Glance 02
Chairman’s Statement 04
Investment Case 05
Market Outlook 06
Our Strategy 08
Our Business 09
Chief Executive’s Review 10
Principal Risks and Uncertainties 20
Financial and Operating Review 22
GOVERNANCE
26-34
Board of Directors 26
Directors’ Report 28
Directors’ Remuneration Report 31
Directors’ Remuneration Policy Report 33
FINANCIAL STATEMENTS
35-74
Independent Auditor’s Report 35
Consolidated Statement of  
Comprehensive Income 36
Consolidated Statement of Financial Position 37
Consolidated Statement of Changes in Equity 38
Consolidated Statement of Cash Flows 39
Company Statement of Financial Position 40
Company Statement of Changes in Equity 41
Company Statement of Cash Flows 42
Notes Forming Part of the Consolidated  
and Company Financial Statements 43
Company Information 74
01 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Continued  
growth
At a Glance
FUNCTIONAL TESTING
Quality assurance including discovery and 
documentation of game defects and testing  
to verify the game’s compliance with console 
manufacturers’ specifications.
CUSTOMER SUPPORT
24/7, multi-lingual customer support for  
games in live operation, forum monitoring  
and moderation services and social media 
engagement on behalf of the game brand. 
LOCALISATION SERVICES
Translation of in-game text, audio scripts, 
cultural and local adaption, accreditation, 
packaging and marketing materials in  
over 50 languages. 
LOCALISATION TESTING
Testing for out of context translations, 
truncations, overlaps, spelling, grammar,  
age rating issues and console manufacturer 
compliance requirements in over 20 languages 
using native speakers.
AUDIO/VOICEOVER SERVICES
Multi-language voiceover recording, original 
language voice production and related services.
ART CREATION
The creation of graphical art assets for 
inclusion in the video game including concept 
art creation, 2D and 3D art asset production.
Tokyo
Singapore
New Delhi 
Beijing 
Milan 
Rome
Manila
Dublin (HQ)
Madrid
London 
Seattle
Portland
Los Angeles
Montreal
Mexico City
Pune 
Shanghai 
Barcelona
Rio de Janeiro
02 KEYWORDS STUDIOS PLC The Group now has 19 studios strategically located to provide  
full, integrated services to local and global clients in key gaming 
clusters across four continents. Since the beginning of 2015,  
we have expanded organically and by acquisition into new 
locations including Portland (Oregon), Barcelona, Madrid, Rio, 
Mexico City, Shanghai and Manila. 
50+
Providing services across more 
than 50 languages
14
and 14 games platforms  
to a blue chip client base  
in over 15 countries
20
serving 20 of the top 25  
games companies by revenue
19
from 19 studios worldwide
Keywords services 20 of the top 25 games companies by revenue
*
...
… and 7 of the top 10 mobile games developers by revenue
**
...
… and has won several new clients.
* Source: Newzoo, Top 25 Games Companies by Revenues, December 2015.
** Source: PocketGamer.biz, Top 50 Developers of 2015, March 2015.
03 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Chairman’s Statement
Continued organic  
and acquisitive growth
As a result, the Group’s revenues have grown  
from €16.2m in 2013 to €37 .3m in 2014 and 
€58.0m in 2015. Like for like growth has been 
strong at over 20% in each of the past two  
years, with stable net adjusted operating  
margins of approximately 14% in 2015.
During this two year period Keywords has firmly 
established itself as the leading services provider 
to the global games market, with an impressive 
range of services and a reputation for high quality, 
secure and timely delivery of those services. In 
addition to the Group’s traditional service lines  
of localisation and localisation testing, we now 
hold strong positions in functional testing, art 
outsourcing and audio and a growing capability  
in customer support.
Managing Growth
As Keywords has continued to expand at a pace, 
we are making good progress in developing our 
infrastructure, including sales, marketing and 
management processes and information, and 
putting in place a structure to manage the 
business both along service lines and by 
geography. A key focus for 2016 will be  
IT and finance.
We continue to successfully embed the Keywords 
culture across our new operations under the 
strong leadership from our senior executives, 
nearly half of whom joined Keywords through  
the acquisitions made in 2014 and 2015.
The Business Model
Although the core elements of the business model 
are described elsewhere I believe its attributes 
deserve to be recognised as an important feature 
of the business and its evolution. Keywords largely 
charges for its services on a time basis, without 
the risk associated with fixed price contracts, and 
it is able to flexibly meet client demand by using 
well developed pools of contractors to supplement 
its permanent staff as required.
Most of its assignments are repeat in nature, with 
services to existing customers typically accounting 
for around 80% of revenues. Customers pay 
monthly for work undertaken in the previous 
month and the Group’s capital expenditure 
requirements are low, leading to a strong profit  
to cash conversion rate. Keywords must deliver 
good quality service to a demanding set of 
customers against set deadlines; our track record 
shows a high level of customer satisfaction, which 
is testimony to the skill and commitment of 
Keywords’ operatives.
People and Culture
I have already touched on the qualities required, 
and in evidence, by the top team at Keywords, all 
of whom display a commitment and belief that 
Keywords will succeed in its strategy to become 
the clear market leader in its field. On behalf of  
the Board and the shareholders, I’d like to thank 
everyone who works for us for all their individual 
contributions to our past and future success.
Shareholders and Dividend
In November 2015, shareholders supported us 
with a successful placing in which £10.5 million 
was raised to fund continued value-enhancing 
acquisitions by the Company. Through the placing, 
we were able to welcome several new institutional 
shareholders and we would like to thank all of our 
shareholders for their support. We look forward  
to continuing to deliver shareholder value, building 
on the share price progression we have seen in line 
with our underlying trading performance over the 
last couple of years.
In line with its progressive dividend policy, and 
allowing for the need to retain resources to fund 
future growth of the Group’s business and its 
strategic aims, the Board is pleased to recommend 
a final dividend of 0.81p per share which, following 
the interim dividend payment of 0.40p per
share, will make the total dividend for the year 
ending 31 December 2015 1.21p per share, an 
increase of 10% on 2014. Subject to shareholder 
approval at the Annual General Meeting, the final 
dividend will be paid on 23 June 2016 to all 
shareholders on the register at 3 June 2016.
Current Trading, Prospects and Outlook
The current year has started well with the Group 
trading in line with our expectations and the 
recent acquisitions of Ankama and Mindwalk have 
both strengthened our customer service and art 
creation services and brought a strong presence  
in the Philippines and China, respectively.
 
The video games market continues to grow 
strongly, at around 8%* per annum. The 
complexity of taking ever more sophisticated 
games to market in multiple geographies and  
on multiple platforms, means developers and 
producers are increasingly seeking to outsource 
elements of their game production and live 
operations support. Keywords is well placed  
to take advantage of these trends without 
dependence on any individual game.
We expect to make further progress during  
2016 with continued organic momentum in the 
business, as well as realising further synergies, 
benefiting from the full year effect of our 2015 
acquisitions and from the acquisitions of Ankama 
and Mindwalk in 2016. We are also actively 
reviewing a number of acquisitions with the 
potential to further complement our continued 
strong organic growth. We, therefore, look forward 
to 2016 with confidence.
Ross Graham
Chairman
2015 has been another year of strong progress in delivering 
against the ambitious strategy we set out at the time of the 
Group’s flotation in 2013, both organically and by acquisition.
* Source: NewZoo, June 2015.
04 KEYWORDS STUDIOS PLC Investment Case
Reasons to invest  
in Keywords 
ACCESS TO A LARGE, HIGH GROWTH MARKET
Keywords operates in an exciting high growth market which is predicted to grow at a Compound 
Annual Growth Rate (CAGR) of + 7 .9% over the next three years, reaching $113.3 billion by 2018 
(Source: NewZoo, 2015), without direct exposure to the successes or failures of individual game 
titles. The increased sophistication of games and the growing complexity of their delivery to market  
is driving the demand for larger scale, professionalised outsourced specialists, such as Keywords.
MARKET LEADING POSITION
Keywords’ Directors believe that the Group has achieved a market leading position as the only 
provider of fully integrated outsourced technical services to the global video games industry, now 
providing services across more than 50 languages and 14 games platforms to a blue chip client base 
in over 15 countries from 19 production studios across four continents. It has gained a reputation in 
the industry for quality, reliability and flexibility, as demonstrated by its strong client relationships 
which include working with 20 of the top 25 traditional games developers, and 7 of the top 10 mobile 
developers. The market for services to video games companies remains highly fragmented, with few 
global suppliers despite clients increasingly looking at moving to fewer, larger suppliers. In this 
context, Keywords’ market leadership places it well to take advantage of the clear opportunities  
to consolidate the market further. 
STRONG TRACK RECORD OF GROWTH, BOTH ORGANICALLY AND 
THROUGH ACQUISITION
Since IPO we have delivered on our strategy to make Keywords the ‘go to’ global provider for 
outsourced video games technical services. We have successfully acquired and integrated ten 
acquisitions since IPO adding two new services, Art Creation and Customer Support, as well as 
enhancing our capabilities in existing service lines. We have also grown Keywords’ network of studios 
to have a presence in 13 countries (compared to five at the time of IPO). In the year to 31 December 
2015, this resulted in a 55% increase in Group revenues which includes a 20 % increase in revenue 
growth on a ‘like for like’ basis (i.e. excluding the impact of acquisitions).
A BUSINESS MODEL THAT SUPPORTS GROWTH
Keywords’ flexible resourcing model and relatively low working capital and capital expenditure 
requirements support its ability to grow the business whilst also achieving strong cash conversion. 
With flexible work forces and the use of extensive in-country freelance networks we can flex up or 
down to meet the highly agile requirements of projects and scale up in the peak production period. 
Most of its assignments are repeat in nature, with the same services to existing customers typically 
accounting for around 80% of revenues. Our business is not exposed to the uncertainties of fixed 
price, fixed term contracts for project deliveries. Instead, we charge per hour, per man month, per 
word or per asset created and with low capital expenditure requirements, the business has good 
profit to cash conversion.
SIGNIFICANT OPPORTUNITY TO GROW OUR GEOGRAPHICAL REACH, 
SERVICE CAPABILITIES AND CLIENT RELATIONSHIPS
Having made strong progress in extending the Group’s client base, market penetration and service 
lines, there remain a number of opportunities for the Group to use its existing expertise, multi-service 
platform, scale and global reach to consolidate its position as the leading provider of outsourced 
services to the video games industry. Our key priorities in the near to medium term are to extend our 
presence in China, which is the world’s largest gaming market; to further build upon our recently 
created art services business, to extend the geographical reach and language capability of existing 
services; and to broaden our relationships with existing clients, including through dedicated teams 
providing managed services.
05 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III 1
2
3
The leading provider  
in a large, growing market
Market Outlook
The global video games market is expected to 
continue to experience healthy revenue growth, 
with NewZoo predicting the global market will 
reach $113.3 billion by 2018, representing a 2014 
to 2018 Compound Annual Growth Rate (CAGR)  
of almost 8% (NewZoo report, 8 June 2015). 
Particularly fast growth in Latin America, where 
revenues increased by 18% in 2015, and China, 
where sales were up 23% year on year in 2015, 
creates the need for high quality localisation and 
testing of original content.
The latest generation of consoles (Xbox One and 
PlayStation 4), which initially launched in late 
2013, have now reached combined worldwide 
sales of well over 40 million units
1
.
With this more established installed base 
encouraging more games developers to produce 
new and exciting material, many will look to 
outsourced solutions such as Keywords to 
support the art creation, localisation, testing  
and aftercare for their games.
With continued growth in the quantity, size  
and richness of content (both graphic and audio 
quality), the market for (smart) phones and tablets 
is predicted to grow at an impressive 15.9% CAGR, 
from over $30.0 billion in 2015 to $44.2 billion in 
2018
3
, ultimately taking 39% of the global games 
market. Keywords is heavily tapped into this  
given its exposure to 7/10 of the top mobile 
games producers; working on several of 2015’s 
top selling mobile games
4
, including Game of War, 
Clash of Clans and Candy Crush Saga.
Although Virtual Reality is still at the beginning  
of its lifecycle, and cannot yet be considered ‘the 
Fifth Screen’, its eventual success is undeniable, 
STRONG GROWTH  
IN CONTENT SET  
TO CONTINUE
with Google, Sony, Samsung and Facebook among 
the many tech giants investing heavily in VR 
technology. NewZoo believe that in the long term, 
game interaction will no longer require a screen, 
and that augmented reality will become 
common-place in the video games market. 
Eventually this will begin to take revenue share 
from the current PC and console markets, but  
with only a small core group of computer gamers 
indulging in the initial technology, the tipping 
point is likely to occur later in the technology’s 
development phase.
3 Global Games Market Report 2015, NewZoo.
4 Top Grossing iPhone mobile gaming apps in the US as  
of Nov 2015, Statista.
Games platforms have become ever more 
sophisticated, with the increased connectivity, 
processing power, storage and bandwidth 
capabilities of both smartphones and consoles, 
allowing them to support more complex, rich and 
interactive content. This higher definition content, 
which takes longer and costs considerably more  
to create, is driving games developers towards 
outsourced providers such as Keywords to supply 
the specialist support they require. 
This trend is evident in existing platforms such  
as the Xbox One and PS4, and is likely to become 
even more prevalent as Virtual Reality content 
becomes more and more in demand.
INCREASED COMPLEXITY 
FOR DEVELOPERS AS 
PROLIFERATION OF GAMES 
PLATFORMS CONTINUES
RICHER AND CONTINUALLY 
UPDATED CONTENT 
SUPPORTED BY HIGHER 
PERFORMANCE GAMES 
PLATFORMS
The ‘connected’ nature of the new generation  
of consoles, as well as mobiles and PCs, supports 
an increase in content through the delivery of 
continuous game content updates and new 
modules in order to retain existing games users  
in the game, whilst this continuous engagement 
with players also generates a greater need for 
ongoing customer support.
06 KEYWORDS STUDIOS PLC 22%
47%
4%
26%
4%
44%
28%
24%
2014
$83.6bn
2015
$91.5bn
  Europe, Middle East, 
Africa
 Asia-Pacific
 Latin America
 North America
37%
23%
13%
27%
13%
20%
29%
38%
2014
$83.6bn
2015
$91.5bn
13%
 Computer screen
 Personal screen
 Floating screen
  E n t er ta in m en t s c r e en
2014 2018
CAGR 2014 – 2018 – 7.9%
113.3
70 70 70
83.6
The global video games market is predicted to grow 
significantly, with NewZoo forecasting a CAGR of 7 .9% 
from $83.6bn in 2014 to $113.3bn in 2018.
Revenues per screen (bn) 
$91.5bn
h
9% YoY
 Global games market size by 2018 ($bn)
$113.3bn
h
7 .9% CAGR
Growth isn’t just limited to traditional consoles. 
Mobile, social and online gaming are growing at  
an even faster rate, given the wide demographic 
that has access to them (a recent survey of  
the US entertainment software market by the 
Entertainment Software Association revealed 
that 48% of all game players are women, and the 
average age of a gamer is 31
2
, dismissing the 
assumption that the market is mainly made up  
of young males).
1 TechTimes, Nov 2015.
2 Essential Facts about the Computer and Video Game 
Industry, 2014.
Global games market 2014/15 per market segment
Global games market 2014/15 per region
China overtakes 
USA as largest 
games market by 
revenue, driving 
strong growth in 
Asia-Pacific.
07 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III 1
2
3
Growing both organically  
and by acquisition
Our Strategy
EXPANDING OUR  
GEOGRAPHICAL REACH
• New clients have included Oculus VR, Amazon, 
NetMarble Games and Obsidian Entertainment.
• Clients using three or more Group services grew  
by 70% to 51 clients in 2015.
Managed service operations set up at Keywords studios  
for two clients, providing clients with dedicated teams  
for pre-agreed activity levels.
• Extended our art services operation to establish  
a studio in Seattle to interface closely with games 
studios there while also managing much of the 
production in India.
• Established multi-lingual customer support operations 
in Tokyo, Montreal and Dublin.
• 12 of our studios across America, Asia and Europe are 
now able to offer multiple services.
• On an annualised basis, our art creation services 
accounted for 20% and customer support accounted  
for 7% of 2015 Group revenues.
• Leveraged existing studio locations to establish 
operations in Seattle and Barcelona organically and 
expanded in Montreal.
• Entered South America and expanded into Madrid  
via acquisitions.
• Established presence in Shanghai.
• During 2015, the Group grew its global presence from  
14 to 19 locations, now across four continents.
• Rio based localisation and audio firm, Reverb, provided 
first office in the fast growing South American market.
• Alchemic Dream provided entry into customer  
support services.
• Spanish audio and localisation firm, Kite Team, 
provided further penetration of South America.
• Oregon based Liquid Development increased scale  
in the buoyant art creation market.
See more on Page 17
See more on Page 16
See more on Page 18
See more on Page 19
MARKET TRENDS STRATEGIC PRIORITY 2015 PROGRESS
DEVELOPING CUSTOMER 
RELATIONSHIPS AND 
OUTSOURCING
EXTENDING  
OUR SERVICES
SELECTIVE  
ACQUISITIONS
STRONG GROWTH IN 
CONTENT SET TO 
CONTINUE
INCREASED COMPLEXITY 
FOR DEVELOPERS AS 
PROLIFERATION OF 
GAMES PLATFORMS 
CONTINUES
RICHER AND 
CONTINUALLY  
UPDATED CONTENT 
SUPPORTED BY HIGHER 
PERFORMANCE GAMES 
PLATFORMS
08 KEYWORDS STUDIOS PLC 1
2
4 3
6
5
Our Business
The Keywords Business –  
what we do in brief
Services Keywords Studios currently provide.
Services Keywords Studios do not currently provide.
1. PRE-PRODUCTION
 – Concept art
 – Level design
2.  EARLY STAGE GAME 
DEVELOPMENT
 – Programming
 – Story writing
 – Motion capture
 – Development quality assurance
 – Game trailers
 – Art production
 – Audio production
• Original language  
voice production
• Music scoring
• Sound design
3.  LATER STAGE GAME 
DEVELOPMENT
 – Functional testing
 – Text localisation
 – Audio localisation
 – Localisation testing
 – Cinematics/visual effects
 – Player research
4. LAUNCH
 – Certification testing
 – Marketing
5.  ONGOING LIVE OPERATIONS 
SUPPORT
 – Customer support
 – Community management
 – Data analytics
 – Payments processing
6.  NEW CONTENT FOR GAMES
including game extensions, level expansions 
and issue patches
Keywords provides outsourced technical services 
to the global video game industry which assist 
developers and publishers to develop, sell and 
operationally support their games across all 
games platforms and throughout the games cycle. 
Services are delivered through 19 production 
facilities (‘studios’), which are strategically located 
across Europe, Asia and the Americas to be close 
to our clients or as lower cost centres, and through 
the provision of managed services either on 
clients’ or our premises. 
The Company’s reputation for quality and 
reliability combined with its scale, which provides 
the flexibility to deliver client needs locally, with 
the right mix of languages, services and costs, 
positions Keywords as the ‘go to’ supplier for 
games services.
09 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Prototype desert creature 
by Lakshya Digital
Chief Executive’s Review
Another year of  
good progress
2015 saw another year of good progress for Keywords, in which 
the Group delivered healthy like for like growth, supplemented  
by selective acquisitions which have further expanded our range 
of services and extended our geographical reach. 
Strong like for like growth of 20% was driven by 
our art creation, localisation and audio service lines 
in particular. In addition, we continued to deliver on 
our industry consolidation strategy by acquiring 
four companies during 2015 and a further two 
since the year end. These acquisitions have 
expanded our service offering into player support 
and community management services to support 
games in live operations and have extended our 
reach geographically to Mexico and the Philippines. 
Additionally, our acquisitions of Liquid Development 
and Mindwalk added further scale to our activities 
in the buoyant art creation market which we 
entered in 2014 with the acquisition of Lakshya.
We have also made good progress on the 
integration of the acquisitions we made in 2014 
and in 2015. We have put in place a management 
structure which combines global management to 
drive and coordinate the six service lines that now 
make up Keywords Studios with regional and 
country management to ensure the appropriate 
local support is in place.
Results Overview
Including the effect of acquisitions, the  
Group’s revenues increased by 55% to €58.0m 
(2014: €37 .3m) during the period, reflecting 
growth across all lines of business as outlined in 
the Operational Review section from page 12.  
In order to provide a better measure of organic 
revenue growth in the businesses that Keywords 
now owns, we are also providing like for like 
revenue growth, which provides a 2014 
comparative as if all of the 2015 acquisitions had 
been owned for the same period in 2014 as they 
have been in 2015. On this measure, organic 
growth was approximately 20% in 2015.
10 KEYWORDS STUDIOS PLC Batman from Batman: 
Arkham Knight
37.6%
Gross profit margins
Gross profit margins increased to 37 .6% 
(201 4: 34.0%) reflecting a combination of the 
increase in our higher margin art creation services  
as a proportion of the revenue mix, and the 
maintenance or increase of our margins in the  
other service lines.
The Group reported adjusted profit before tax 
(before share option charges, amortisation of 
intangible assets, costs of acquisition and 
integration, and foreign currency movements)  
for 2015 of €8.0m (2014: €5.1m). Statutory profit 
before tax for the period was €5.1m (2014: €3.4m).
The Group’s effective tax rate has decreased  
as we make better use of our brands, operating 
models and tools from our Dublin operational 
headquarters in support of our business around 
the world, much of which is in higher tax rate 
jurisdictions including Canada, the US, Japan, India 
and Italy. The Group’s effective tax rate based  
on the KWS measure of profit before taxation  
in the period (as set out on page 23) was 22.9% 
(2014: 24.0%).
Basic earnings per share for the year, before 
one-time costs of acquisitions and integration, 
share option charges, amortisation of intangibles, 
and foreign exchange movements, was 12.71c 
compared with 8.54c for 2014. After these items, 
the basic earnings per share from continuing 
operations was 6.98c (2014: 4.94c).
 “The Group’s revenues increased  
by 55% to €58.0m (2014: €37 .3m) 
during the period, reflecting growth 
across all lines of business.”
11 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III 2014 2015
€0.6m
€8.2m
2014 2015
€17.1m
€12.0m
Operational Review
Having acquired Alchemic Dream in January 2015 
we effectively began the year with six service 
lines – two more than at the start of 2014. All  
six service lines grew like for like sales during  
the year and four were positively impacted by 
acquisitions. A segmentation of the Group’s 
revenues by service line is provided in the  
Financial and Operating Review.
Art Creation
Our higher margin, art creation services revenue 
grew to €8.2m (2014: €0.6m), reflecting a full  
year contribution in 2015 from Lakshya, which 
had been acquired in October 2014, and Liquid 
Development’s contribution following its 
acquisition in August 2015. Importantly, the 
combined art creation businesses have delivered 
like for like growth of approximately 70% year  
on year, reflecting the high market demand for  
art services and our investment in talent to 
respond to this opportunity. This investment 
helped Lakshya to almost double its revenues  
year on year supported by the opening of a 
production studio in Seattle in May 2015 and  
the expansion of its art team in India by over  
100 artists during 2015.
The acquisition of Liquid Development in August 
2015 gave the Group further scale, bringing with it 
additional capabilities in video game art production 
as it works for game developers involved in 
producing console, online, PC, mobile and console 
games as well as interactive experiences for theme 
parks. Liquid Development and Lakshya are starting 
to work well together and we remain encouraged 
by their performance and growth plans.
The objective for our art creation services line is to 
grow capacity to meet demand, whilst maintaining 
our reputation for quality and reliability of delivery 
to our customers’ timescales. In addition, we aim to 
extend our capabilities to areas such as concept 
art (taking us right to the very start of the game 
development cycle) and visual special effects. 
The acquisition of Mindwalk Studios in Beijing 
which was announced after the year end and is 
dependent on the fulfilment of certain acquisition 
related conditions, will add further capacity both 
in its existing 150 artists and in its access to the 
wider talent pool of game artists in China.
Localisation
Localisation activities, including contributions 
from Reverb, Alchemic Dream and Kite Team,  
which were acquired in the year, increased 
revenues by approximately 43%, to €17 .1m  
(2014: €12.0m) and accounted for approximately 
30% of Group revenue.
A Mordesh from Wildstar
Chief Executive’s Review continued
Localisation services
€17.1m
Art creation services
€8.2m
12 KEYWORDS STUDIOS PLC 2014 2015
€6.5m
€5.0m
 “All six service lines grew like for like sales during the  
year and four were positively impacted by acquisitions.”
With an output of some 90 million translated words 
in 2015, our games localisation business is now the 
largest specialist games business in the world and 
we continue to pursue growth opportunities in 
what remains a highly fragmented market. A 
resolute focus on quality, on-time delivery and cost 
effectiveness helped see this service grow its like 
for like revenues by approximately 26% aided by 
strong volume growth of existing clients and new 
clients wins.
Functional Testing
Our functional testing service, which accounted  
for approximately 11% of Group revenue in 2015, 
increased revenues by approximately 30% to 
€6.5m (2014: €5.0m). On a like for like basis, 
revenues grew by approximately 17%.
Gross margins also improved, a testament to 
Keywords’ ability to manage large multi-month 
testing projects alongside projects of only a few 
days, whilst ensuring high levels of staff utilisation 
through its flexible staffing model.
Localisation Testing
Our localisation testing operations, which 
accounted for 26% of Group revenue in 2015, 
grew by a relatively modest 2% to €15.0m  
(2014: €14.7m). 
OUR BUSINESSES
€8.2m
Art creation services 
revenue
€17.1m
Localisation activities 
revenues
Functional testing
€6.5m
13 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III 2014 2015
€14.7m
€15.0m
2014 2015
€5.1m
€7.2m
2014 2015
€0.0m
€3.9m
The performance of localisation testing reflects 
the phasing of activity from certain key clients 
which had fewer titles in 2015 compared to 2014. 
Those clients are expected to return to higher 
levels of activity in 2016 as they increase their 
pipeline of titles to be released this year.
Audio
Our audio business increased revenues by 
approximately 41% to €7 .2m (2014: €5.1m), 
including contributions from Reverb and Kite  
Team which were acquired in January and July 
respectively. On a like for like basis, revenues in  
our audio service line grew by approximately 23%.
Providing single language Brazilian Portuguese, 
Latin American Spanish and Iberian Spanish audio 
recording and production services, Reverb and Kite 
Team have won tenders from game publishers 
who source each language separately. Publishers 
who adopt a multi-lingual approach use the 
services of our Binari Sonori business which has 
proven expertise gained over many years in 
managing simultaneous production of audio 
voiceover recordings in 20 or more languages.
Customer Support
In January 2015 we acquired Alchemic Dream 
which provided us with an entry point to providing 
customer support services. This new customer 
support business achieved revenues of €3.9m 
(2014: €nil), accounting for approximately 7% of 
Group revenues and a 10% increase on a like for 
like basis.
Alchemic Dream uses a network of multi-lingual 
agents working remotely but connected through 
technology platforms to deliver its customer 
support services. We have begun to build upon this 
capability by utilising our existing international 
production facilities and talent pool of over 1,000 
employees, enabling us to provide customer 
support and community management teams out 
of our studios in Tokyo, Singapore, India, Dublin  
and Montreal. We believe it will be an advantage  
to both clients and users for Keywords’ teams,  
who have already garnered deep knowledge of  
all aspects of the game through their involvement 
in the production and launch phases of a game,  
to provide ongoing live operational support to 
those games. 
We anticipate that this approach will support good, 
profitable growth in this service line in future years.
Delivering Our Strategy
We have made strong progress in delivering on  
our strategy to grow Keywords Studios both 
organically and by acquisition to extend the 
Group’s client base, service lines and geographical 
penetration, where the Group can use its existing 
expertise, multi-service platform, scale and global 
reach to generate synergies in a highly fragmented 
games services industry. We are particularly 
pleased to have both established a substantial 
capability in the higher margin, art creation 
services, which means that we are now working 
with clients at an earlier stage in the game 
development cycle, and that we now have a much 
better balanced business across the six service 
lines. The Board believes that there is a clear 
opportunity for Keywords to extend its existing 
relationships with many of the major games 
companies both through providing additional 
services to existing customers and through 
providing dedicated outsourced services.
In addition, we believe that content in its many 
forms is becoming more interactive and, as 
highlighted at the time of the IPO, we continue to 
maintain a watching brief on some closely adjacent 
markets to that of video games in the expectation 
that at some point our expertise in what is the 
most interactive form of content, video games, will 
become highly relevant to other industries such as 
e-learning, film and television and online gambling.
People
Increasingly, we see evidence of the Group 
becoming a home for top talent in our industry. 
Rather than chase the production of game after 
game from development studio to development 
studio, talented artists, producers, project 
managers and testers can work at Keywords where 
the games come to them. In addition to externally 
recruited management and production talent, we 
continue to develop our people internally across all 
our businesses and we have benefited greatly from 
some strong additions to our senior leadership 
team following the acquisitions we have made.  
The Group employed an average of 1,273 people 
in 2015 (2014: 978).
Chief Executive’s Review continued
Audio/voiceover services
€7.2m
Customer support
€3.9m
Localisation testing
€15.0m
€15.0m
Localisation testing 
operations revenues
14 KEYWORDS STUDIOS PLC Outlook
Trading in the first two months of the current 
financial year has been in line with the Board’s 
expectations. As expected, 2015 was the first, 
solid, post transition year following the launch  
of the new Xbox and PlayStation platforms in 
November 2013. With 2016 being the year in 
which Virtual Reality is launched by a number  
of headset providers including Oculus, Sony and 
Valve, we anticipate that 2016 will bring further 
strength in the console sector while our mobile, 
social and online games content related business 
should continue to perform strongly.
High demand for our art outsourcing services at 
Liquid Development, Lakshya and now Mindwalk  
is expected in 2016 and, as in 2015, we anticipate 
good organic growth from this service line which 
we plan to build upon through further selective 
acquisition opportunities. The establishment of  
an art studio in Seattle in 2015 is starting to bear 
fruit as we benefit from proximity to a number of 
clients in the area, proving the model of having 
lead artists and art managers close to the client 
while undertaking the majority of the production 
in our studios in India.
Our audio service line, which is currently 
under-weight compared to the other services in 
the Group, is targeted for expansion. In particular, 
we are promoting our single language capabilities 
for Italian, Spanish, Latin American Spanish and 
Brazilian Portuguese, where we have in territory 
recording studios, and for Arabic, where we have 
become a go to provider for this complex but fast 
growing language. We also have a pipeline of 
potential acquisitions in this area.
We expect to make continued good progress during 
2016, as we realise the full year benefits of our 
2015 acquisitions and as they are integrated further. 
By capitalising on the synergies across the group, 
from sharing access to our talented people and 
production facilities, to leveraging our established 
client relationships, global sales force and marketing 
spend across all service lines, we anticipate driving 
continued strong organic growth, complemented by 
further selective acquisitions.
Andrew Day
Group Chief Executive Officer
STRATEGIC PRIORITIES
€7.2m
 Audio business revenues
15 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III ART CREATION IN FOCUS
Outsourced art services to the video games industry is a key area for expansion for  
Keywords as it is a buoyant, large and highly fragmented market which also provides  
Keywords with earlier involvement in the development cycle of video games titles.
Art creation is the design and rendering of  
all video game visuals (‘art assets’ such as 
characters, clothing, vehicles, landscapes, 
cityscapes). Computer graphics have developed 
enormously in the past 20 years. All of the art 
in a video game is hand-crafted, with the 
characters and other art assets becoming more 
sophisticated and detailed. The increased 
capabilities of games platforms, such as the 
latest generation of consoles, has materially 
increased the time required to design and 
render a core character. For example an art 
asset that used to take approximately 20 man 
days on the Xbox 360, may now take 40 days  
for the Xbox One.
In October 2014, Keywords Studios acquired 
Lakshya Digital, a leading provider of 
outsourced art services for the video games 
industry internationally which provided the 
company with an entry point into this fast 
growing market.
In August 2015, Keywords expanded its art 
creation offering with the acquisition of Liquid 
Development. We have also expanded our art 
creation team during 2015, hiring more than 
100 additional artists in India and the US to 
support strong organic growth. This together 
with the acquisitions resulted in growth of 70% 
in revenue.
The acquisition in March 2016 of Mindwalk 
Studios in Beijing did not only deepen our 
involvement in this field, but has given us  
a meaningful base in China from which to 
further expand our art creation activities as 
well as our other service lines.
The higher margin art creation offering 
accounted for approximately 20% of Group 
revenue on an annualised basis at the end  
of 2015.
STRATEGY IN ACTION
EXTENDING OUR SERVICES 
70%
Like for like growth  
year on year
Storm Kestrel from Firefall
Chief Executive’s Review continued
16 KEYWORDS STUDIOS PLC Dropshift from Firefall
STRATEGY IN ACTION
OUTSOURCING
Year on year we have expanded the number of services 
we provide to each of our clients. The number of clients 
now using three or more services grew by 70% to 51  
clients in 2015.
In 2015 we expanded our 
relationship with two existing 
clients adding dedicated, managed 
services teams for localisation, 
localisation testing and community 
management tasks both based out 
of our Dublin studio.
One of the clients is a leading 
mobile games developer/publisher 
and the other develops and 
operates one of the world’s leading 
online games. We are seeing 
increased opportunities for such 
managed services and single 
sourced arrangement given our 
financial solidity, our operational 
robustness thanks to multi-site, 
multi-country duplication of 
capabilities, and being seen as 
having some of the best talent  
in the industry.
In March 2016, we took over  
the live operations support team 
from French publisher, Ankama 
SAS. Based in the Philippines,  
this team provides a range of 
support services including fraud 
management, customer support, 
testing, ‘bot hunting’ (seeking  
out and neutralising automated 
programs that have been 
introduced into the game against 
the rules), and promotions 
management for Ankama’s games 
including Dofus, Wakfu and Tactile 
Wars in English. We are investing  
in new, larger premises in Manila 
and will be expanding this team  
to provide similar services to 
additional game clients.
DEVELOPING CUSTOMER RELATIONSHIPS AND OUTSOURCING
70%
Increase in number  
of clients using three 
or more Keywords 
services since 2014
17 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Jeep design by Liquid Development
Chief Executive’s Review continued
STRATEGY IN ACTION
GEOGRAPHICAL GROWTH
GEOGRAPHIC DEVELOPMENT
In order to best serve its video game developer and 
publisher clients and to access specific talent pools, the 
Group has continued to expand geographically and now 
has 19 (2014: 14) studios in four continents providing 
full, integrated video games services to both local and 
global clients.
Keywords’ studios are strategically 
located to provide services to key 
gaming clusters in locations such 
as Tokyo, Singapore, Montreal, 
Seattle, Los Angeles and London. 
Since the beginning of 2015 we 
have expanded into new locations 
including Mexico City, Beijing, 
Shanghai, Manila and Madrid.
We have also leveraged our studio 
locations by housing a newly 
established art creation operation 
for Lakshya together with our 
existing localisation testing 
operations in Seattle in a new 
facility. Separately we have seeded 
our customer support operations 
into our studios in Rio de Janeiro, 
Tokyo, Montreal, Singapore, Dublin 
and New Delhi.
Having added Manila to our 
network of studios in March this 
year we intend to expand our 
operations in the Philippines during 
2016, as it is an important, low 
cost, English proficient location 
ideally suited to services such as 
customer support and games 
operations management.
China continues to present an 
exciting opportunity for the Group. 
It is thought to have surpassed the 
US as the largest market for games 
and is slowly liberalising. In 
addition to the acquisition of 
Mindwalk described on page 19, 
we established a wholly owned 
foreign enterprise and an initial 
presence in Shanghai during the 
year which, in addition to 
undertaking business development 
and corporate development 
activities for the Group, is now 
starting to deliver localisation 
services directly from Shanghai.
19
Global studios,  
up from 14  
in 2014
18 KEYWORDS STUDIOS PLC STRATEGY IN ACTION
SELECTIVE ACQUISITIONS
ACQUISITIONS
While we are particularly pleased with our organic 
growth, Keywords has continued to take advantage of 
the highly fragmented markets for video games services. 
We have acquired a further six 
businesses since the beginning  
of 2015 to take the total to ten 
acquisitions since listing on AIM  
in July 2013, and we are 
encouraged by the way in which 
the acquired businesses have  
been welcomed into the Group  
and integrated through the 
adoption of common systems, 
reporting formats, sales and 
marketing. The globally managed 
service line based organisation 
structure implemented in 2015 
further facilitates this integration 
process and provides management 
bandwidth for conducting and 
integrating further acquisitions.
In January 2015, Alchemic Dream, 
which provided us with an entry 
point into customer support and 
community management services, 
and Reverb, which provides 
localisation and audio for Brazilian 
Portuguese, were welcomed into 
the Group. In July we acquired 50% 
of Kite Team (localisation and audio 
for Spanish, Latin American Spanish 
and Brazilian Portuguese) and,  
in August, Portland, Oregon art 
creation services business Liquid 
Development joined the stable.
We have been pleased with the 
progress made with integrating 
the acquired businesses. The 
businesses have performed well  
as part of the Group and we have 
been very encouraged by the 
positive responses from customers 
to the acquisitions.
Since the year end we have 
acquired Ankama Asia Pte Ltd in  
a strategic outsourcing deal which 
provides the Group with a platform 
in Manila from which to further 
develop our customer services 
business with the benefit of a four 
year contract with Ankama SAS.  
In addition, we have acquired 
Mindwalk Studios, for a total 
consideration of $5.5 million, which 
provides outsourced art creation 
services to the video games 
industry internationally from its 
base in Beijing, giving us both 
additional art creation capacity  
and a strong platform from which 
to grow in China. 
We expect acquisition activity  
to be a feature of the business  
for the foreseeable future as the 
Company takes advantage of its 
leadership position in the market 
and continues to consolidate 
carefully selected, earnings 
accretive businesses. We continue 
to review a healthy pipeline of 
acquisition opportunities which fall 
within our stated strategic goals 
and could provide the Group with 
complementary services, increased 
scale in our existing activities or 
further geographic penetration.
6
Businesses acquired 
since the beginning  
of 2015
19 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Principal Risks and Uncertainties
Managing risks 
efficiently
External risks
Exposure to large customers
The Company’s client base principally comprises global game companies whose revenues are in the billions and hundreds of millions of dollars. Our top five 
clients account for 36.4% (2014: 61%) of the company’s revenues. These companies have exacting standards and demand a high quality of service. Any 
failure in this regard or breakdown in the relationships at the top level could cause considerable damage to the business. The potential impact is partially 
mitigated through the Company’s highly flexible resource base and its expansion continues to reduce its exposure to any single large client.
The City and investors
Keywords floated on AIM in July 2013 with an expressed set of objectives of growing the business organically and by acquisition. Should the Company lose 
the confidence of investors, the Company’s rating will suffer and this in turn will affect its ability to raise money for or place shares to pay for acquisitions. 
However, the Company makes every effort to communicate regularly with investors via announcements and face to face contact and this effective 
communication of how it continues to execute on its stated growth strategy and successfully integrate the businesses it acquires should continue to 
maintain the confidence of its investors.
Sudden business interruption
Keywords is a global business and needs to minimise business interruptions and be able to continue servicing customers. This threat could be internal such 
as a major failure in its IT systems but also external such as the Group experienced and managed during the 2011 Tokyo earthquake and tsunami. The 
Group’s multiple, full service delivery hubs provide for a good level of contingency and, supported by a solid business continuity plan and comprehensive 
insurance, the effects of such disasters can be managed.
Technology
The Company uses various third party and proprietary tools and technologies for process control and productivity purposes. Continued investment in 
these tools is important to ensure the Group’s effectiveness. New technologies for automated testing, machine translation, crowdsourcing etc. could pose 
a threat to the Group in the long term. The Company participates directly and with clients in various pilot programmes for new technologies to keep 
abreast of the state of the art.
The market is highly dynamic, with technology, 
business models and consumer tastes evolving 
constantly. In this environment Keywords has the 
objective of becoming the leading global supplier 
of localisation, testing, audio, art and other related 
services to the industry and sees the following 
risks as it pursues this objective.
The Principal risks associated with the Group’s 
strategy can be divided into:
1. General business risks for any  
international company;
2. Industry related risks; and
3. Those specific to the Keywords  
Group and its strategy.
Beyond the general business risks associated  
with any international company, the principal  
risks related to the industry or more specifically  
to Keywords and its strategy, as identified by the 
management and the Board, are set out below.
20 KEYWORDS STUDIOS PLC Internal risks
Security
The industry requires the highest standards of security within a company offering services such as Keywords. Security breaches may lead to piracy, 
disruption of clients’ marketing plans and loss of competitive edge and could result in compensation claims. Keywords maintains physical and data security 
policies and procedures which are regularly audited by its larger clients.
Success of acquisitions
Keywords has an active acquisition strategy to reinforce its global growth. Managing such acquisitions successfully and embedding the Keywords culture is 
a crucial ingredient of success. Failure to do so will have adverse consequences such as management distraction, disposal and reduced profit. Since IPO, the 
Company has involved an increasing number of senior managers in the acquisition and integration process building on the considerable experience of 
acquisitions that exists at Board level. The management structure with globally managed service lines supported by regional management that was 
introduced in mid-2015 has provided further bandwidth to identify, execute and integrate acquisitions.
Service delivery
Most of Keywords’ services are of a time critical nature with delays or service delivery failures potentially impacting the development or launch plans for 
games. Timely delivery and the resourcing flexibility to enable delivery to tight deadlines has been an integral part of the Company’s modus operandi, and 
Keywords’ approach to project management is applied across the Group. With the expansion of the Group, measures are being taken to assess ongoing 
delivery performance beyond the regular project post-mortems that are routinely conducted.
Cross contamination
As the Group succeeds in delivering multiple services to the same clients, so the risk of failure in one service line contaminating the relationship with the 
client across the other service lines increases. Adhering to Keywords’ strong standards of delivery and efficient communication across service lines is key 
to managing this risk.
Financial risks
Adequate overseas financial controls
As a business like Keywords grows rapidly, global financial controls and regular audits need to be in place to ensure smooth, timely and accurate reporting 
to satisfy the relevant accounting bodies to local branches as well as the Board. The Group has invested and continues to invest in its financial reporting 
functions to facilitate strong reporting and management control as it grows.
Keywords is a fast growing but relatively small Group 
operating in a wide spread geography. The markets we 
operate in are fragmented in terms of the suppliers of 
services but our client base is relatively concentrated 
with a number of very large, global suppliers at the head 
and a large tail of small, independent developers. 
21 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Financial and Operating Review
Strong balance sheet  
for further growth
Revenue Mix
Revenues increased across all lines of business in 2015 compared with 2014, resulting in our six service 
lines accounting for the following proportion of Group Sales in the year:
Year ended 
31 December 
2015  
%
Year ended 
31 December  
2014  
%
Pro forma* for the 
year ended 
31 December  
2015
%
Functional T esting 11.2 13.3 10.3
Localisation T esting 25.9 39.4 24.0
Localisation 29.6 32.0 27.6
Audio 12.4 13.6 12.1
Customer Support 6.8 0.0 6.4
Art Creation 14.1 1.7 19.6
Total 100 100 100
*  Pro forma includes the annualised sales of all acquisitions made in 2015 in order to give a better overview of the balance  
of the business as we entered 2016.
Group Performance
2015 saw continued good, profitable growth and 
expansion of the Group. The organic growth rate 
of the existing Keywords operations continued  
at a similar rate to that experienced in the last  
two years while the acquisitions made in both 
2014 and 2015 have contributed strongly  
to the overall result. 
The testing, localisation and audio service lines 
continued to grow strongly and were further 
strengthened by the acquisition of Reverb and  
a 50% share in Kite Team. 
One notable feature of the results has been  
the rapid growth of art creation within the  
service line portfolio. This has been driven by the 
significant growth of Lakshya Digital which only 
contributed in the last three months of the 2014 
results, and the acquisition of Liquid Development 
in August 2015.
In addition, the Group further diversified into  
the customer care market with the acquisition  
of Alchemic Dream in January 2015.
Keywords’ geographic reach continued through 
the opening of the Barcelona studio and 
acquisitions in Rio de Janeiro, Portland, Madrid  
and Mexico City. 
Revenue
Revenue for 2015 was up 55% at €58.0m  
(2014: €37 .3m) due to both organic growth and 
acquisitions. The like for like revenue growth rate, 
which provides a 2014 comparative as if all of the 
2015 acquisitions had been owned for the same 
period in 2014 as they have been in 2015, was 
20% for the year which was the same as the 2014 
organic growth and demonstrates the strong 
momentum the studios have managed to  
maintain throughout the year.
€58.0m
Revenue for 2015
Soldier from Batman:  
Arkham Knight
22 KEYWORDS STUDIOS PLC The proportion of sales in Asia has significantly 
increased during the year due mainly to the 
acquisition of Lakshya in October 2014 which has 
grown rapidly. The sales mix by region based on 
the Group’s operational jurisdictions is as follows:
Year ended 
31 December 
2015  
%
Year ended 
31 December  
2014  
%
Europe 41 46
Asia 17 9
Americas 42 45
100 100
Gross Margin
Gross profit for the year was €21.8m  
(2014: €12.7m). The gross margin percentage 
increased to 37 .6% (2014: 34.1%). The most 
significant impact on the gross margin in 2015  
was the increase in the sales of art creation 
services, which achieves the highest gross margin 
within the Group’s service portfolio. This was 
partially offset by the introduction of customer 
services which commands a lower gross margin 
than the Group’s other services.
Operating Profit (‘EBITDA’)
Adjusted EBITDA is a measure of operating profit 
used by the Board, which excludes depreciation, 
amortisation, share option expenses and one-time 
costs related to acquisitions. For 2015, adjusted 
EBITDA increased 56% to €9.4m, compared with 
€6.0m for 2014. As a percentage of revenue, 
adjusted EBITDA has increased from 16.1% to 
16.2%, reflecting the improvement in the Group’s 
gross margin partially offset by an increase in 
operating expense as described below.
Operating expenses excluding depreciation, 
increased by €5.6m to €12.3m (2014: €6.7m) 
mainly due to the new acquisitions, the full year 
impact of 2014 acquisitions and the opening of 
the Barcelona studio. These costs increased from 
18.0% to 21.3% of revenue mainly due to the 
operating costs ratios within a number of the 
acquired companies which were higher than the 
ratio for the core Keywords studios. Additional 
investment was also made in strengthening 
Keywords management to successfully manage 
the growth of the Group. We expect the operating 
costs as a percentage of revenue to trend towards 
20% as we manage additional volume from 
organic and acquisition led growth within the 
established framework of the Group. 
Operating Profit and Adjusted Profit Before Tax for Years Ended 31 December
2015  
€’000 
2014  
€’000
Statutory profit before tax 5,086 3,436 
Add back costs excluded from Group’s measure of PBT (see below) 2,812  1,618 
Add back loss attributable to non-controlling interest 109 –
KWS measured profit before tax 8,007 5,054 
Add back depreciation and net Interest 1,355  964 
Earnings before interest, tax, depreciation, amortisation, share 
option costs and one-time costs related to acquisitions 9,362  6,018 
Details of costs excluded from Group’s measure of PBT
Costs of acquisition and integration 1,089 1,461
Share option expense 392 156
Foreign exchange loss /(gain) 474 (467)
Amortisation of intangibles 857 468
2,812 1,618 
 “The Group finished the year with a strong  
cash position; with net cash of €17 .3m.”
Deathstroke from Batman: 
Arkham Knight
23 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Financial and Operating Review continued
Net Finance Costs
During 2015 there was net finance cost of €0.74m 
compared to a gain of €0.36m in 201 4 primarily due 
to the impact of foreign exchange losses. Foreign 
exchange losses of €0.5m (201 4: gain of €0.5m) 
were created mainly due to the weakening of 
sterling against the euro on the cash raised in the 
placing and negative impacts of movements of the 
US dollar against the India rupee which was offset 
by the weakening of the euro against the US dollar 
and, within Babel Media, the Canadian dollar against 
the US dollar. The increase in interest expense to 
€0.12m (201 4: €0.06m) is largely due to the interest  
on a €1.1m loan to fund the MMTC receivable  
for 2013 in Canada and €0.6m of loans which  
we acquired with the Kite T eam acquisition.
Adjusted Profit Before Tax
Adjusted profit before tax is used by the Board  
to measure the more meaningful underlying profit 
generation of the Group. This measure excludes 
one-time expenses, such as acquisition and 
integration costs, share option expenses, foreign 
currency gains or losses and amortisation of 
intangibles. Adjusted profit before tax for 2015 
increased by 59% to €8.01m compared with 
€5.05m in 2014.
Taxation
The Group’s effective tax rate reduced to 22.9% 
(2014: 24%) as the Group looked to make better 
use of its global operating headquarters in Ireland 
in the year. This will continue during the next year 
and we would anticipate a further reduction in the 
effective tax rate.
Basic Earnings Per Share
Basic earnings per share for the year, before 
one-time costs of acquisitions and integration, 
share option charges, amortisation of intangibles, 
and foreign exchange movements, increased by 
49% to 12.71c compared with 8.54c for 2014. 
Basic earnings per share based on the statutory 
profit after tax was 6.98c (2014: 4.94c).
Cash Flow and Debt
The Group generated operating cash of €3.4m for 
the year, compared with €1.9m for 201 4. However, 
during the year, the Group also accumulated 
multimedia tax credits in Quebec of €1.3m in 2015 
(201 4: €1.4m) which will be claimed during 2016. 
Therefore, and in order to mitigate against the effect 
of the delay in receiving the multimedia tax credits 
from the Canadian authorities, the Group took out 
financing debt of €1.1m. The total multimedia tax 
credit accrual as at 31 December 2015 amounted to 
€3.9m (201 4: €3.0m).
The Group anticipates that, in general, it will 
convert the net profit after tax to cash less the 
amount which is needed to fund an increased level 
of working capital required due to the continuing 
rapid growth of the business. In 2015 the delay in 
receiving the multimedia tax credits has reduced 
the cash collection below the level which would 
normally be anticipated. This will not be the case 
in 2016. 
The Group made four acquisitions to strengthen 
the business during the year with a net cash 
outflow on consideration payments of €7 .4m, and 
an additional €1.1m in acquisition expenses and 
integration expenses. At the date of acquisition  
of Kite Team, the company had €0.6m of loans in 
place which remained in place at 31 December 2015 
and formed part of the Group financial statements. 
Investment in fixed assets amounted to €1.6m 
(2014: €1.3m) reflecting the cost of expanding 
the Lakshya Digital operation in India, moving 
office in Seattle to include a new art studio, 
further expansion within the Montreal studio  
and fitting out the Barcelona office. Additionally, 
there were ongoing purchases of games testing 
equipment. A further €0.8m was spent on 
purchasing 400,000 Keywords Studios PLC  
Group PLC shares for the Group’s Employee 
Benefit Trust. 
In 2015, the issue of new shares at 1.90p via a 
placing in November generated net proceeds of 
€1 4.2m. In 201 4 the issue of new shares at 1.50p via 
a placing in May generated net proceeds of €7 .3m.
Cash and cash equivalents increased to €19.0m 
from €11.0m excluding accrued multimedia tax 
credits of €3.9m (2014: €3.0m). The loans and 
borrowings were €1.7m at 31 December 2015 
(2014: €nil).
Foreign Exchange
Keywords does not hedge foreign currency profit 
and loss translation exposures. The effect on the 
Group’s results of movements in exchange rates and 
the foreign gains and losses incurred during the year 
are set out in the Net Finance Costs section above.
Dividend
The Company has a progressive dividend policy, 
subject to the retention of funds needed to fund 
future growth of the Group’s business and its 
strategic aims. 
Following the interim dividend payment of 0.40p 
per share on 23 October 2015, the Board has 
recommended a final dividend of 0.81p per share, 
which will make the total dividend for the year 
ending 31 December 2015 1.21p per share, a  
10% increase over 2014. Subject to shareholder 
approval at the Annual General Meeting, the final 
dividend will be paid on 23 June 2016 to all 
shareholders on the register at 3 June 2016.  
The cash cost of the final proposed dividend  
will be an estimated €0.6m. 
Events After the Reporting Period
On 22 March 2016 the Group acquired the entire 
share capital of Ankama Asia Pte Ltd, a company 
registered in Singapore, which provides services  
to support the live operations of the games of 
Ankama. Under the terms of the agreement, which 
will be immediately earnings enhancing, a total 
consideration of €0.25m will be paid to the sellers. 
On 1 April 2016, the Group announced that it had 
entered into an agreement to acquire the business 
and assets of Mindwalk Studios Inc, a company 
registered in China, and Mindwalk Studios Ltd, a 
company registered in the British Virgin Islands. 
Under the terms of the agreement, which is 
anticipated to be immediately earnings enhancing 
and is scheduled to complete before 30 June 2016 
subject to certain conditions being fulfilled,  
a total consideration of US$5.5m will be paid. This  
will be satisfied by the payment of US$3.9m in 
cash and the issue of US$1.6m of Keywords 
Studios plc shares.
Key Performance Indicators
We monitor our financial performance against a 
number of different benchmarks. These are set in 
agreement with the Board and used to evaluate 
progress against our strategy.
Financial performance is measured by: 
• Revenue growth  
Revenue growth is measured by line of 
business and overall against the Board’s 
strategic goal to grow organically and by 
acquisition.
• Gross profit 
Gross profit is a key measure by service line of 
the Group’s pricing strategies, use of resources 
and ability to optimise resource utilisation. 
• Overhead costs by location 
The Board monitors the overheads to ensure 
the costs in each location are in line with the 
level of business being generated.
24 KEYWORDS STUDIOS PLC • Adjusted EBITDA margin 
The Board uses an adjusted measure  
of EBITDA to monitor the performance  
of the Group. This measure excludes foreign 
exchange gains or losses, any one-time 
expenses and the cost of employee share 
option awards.
• Adjusted operating profit margin 
The Board also uses an adjusted measure  
of operating profit to monitor the performance 
of the Group. This measure similarly excludes 
foreign exchange gains or losses, any one time 
expenses, and the cost of employee share 
option awards.
Non-financial performance is measured by:
• Resource deployment 
The Board reviews the efficiency at which the 
Group is utilising its staff resources to ensure 
optimum staffing strategies are deployed and 
to maximise utilisation rates.
• Business won/lost 
The Board reviews the levels of new business 
won and lost, and monitors the reasons for 
both, to ensure that the services being offered 
to the market are appropriately priced  
and relevant.
• Customer satisfaction and quality of  
service delivery 
The Board monitors the quality and timeliness 
of service delivery on an ongoing basis and 
reviews the level of repeat revenue from 
existing customers, typically around 80%,  
as a key measure of customer satisfaction.
Andrew Lawton
Group Finance Director
The Strategic Report on pages 01 to 25 of the 
Annual Report and Accounts has been approved 
by the Board of Directors, and is signed on their 
behalf by Andrew Day and Andrew Lawton.
 “Keywords continues to benefit from low capital 
requirements and good profit to cash conversion.”
Torvald from Evolve
 
 
 
Andrew Day Andrew Lawton
Group Chief Executive Officer Group Finance Director
25 ANNUAL REPORT AND ACCOUNTS 2015
Strategic Report II III Board of Directors
Ross Graham (68)
Independent Non-Executive Director and Chairman
Ross Graham has extensive executive and non-executive experience in the technology sector. He 
worked from 1987 to 2003 at Misys plc, a global financial software product and solutions provider. He 
joined Misys as Finance Director upon its flotation, latterly becoming Corporate Development Director; 
throughout he played a key role in developing and implementing its acquisition strategy. Ross also held  
a non-executive directorship at Psion plc from 2005 until 2012 when that company was successfully 
sold to Motorola Solutions Inc. During his time at Psion, he held various roles including the senior 
independent directorship and chairman of the audit and remuneration committees. He was also a 
non-executive director at Wolfson Microelectronics Plc and was previously senior independent director 
and the audit committee chairman prior to its sale to Cirrus Logic Inc. in 2014. Ross qualified as a 
chartered accountant with Arthur Young in 1969 and was made a partner of that firm in 1981. He is a 
Fellow of the Institute of Chartered Accountants in England & Wales. Ross was appointed Director and 
Chairman of Keywords prior to the flotation in July 2013.
Andrew Day (52)
Group Chief Executive Officer 
Andrew has a background in technology, manufacturing and business services through corporate 
development and general management roles within both publicly quoted and private companies.  
Andrew started his career in 1983 at Rothmans International PLC in production management. From 1986 
to 1993 he had responsibility for corporate development activities at Britannia Security Group PLC, TIP 
Europe PLC and Brent International PLC before holding the position of Divisional Managing Director at 
Brent International PLC for six years. Andrew was Chief Executive Officer of interactive retail software 
developer, Unipower Solutions and Head of Retail and CPG for EMEA at NYSE listed advanced analytics 
business, FICO, before joining Keywords as its Chief Executive Officer in April 2009.
Andrew Lawton (53)
Group Finance Director 
Andrew Lawton has extensive experience within the video games industry, FMCG and multi-site retail. 
He was previously CFO of the fast growing international business Sony Computer Entertainment Europe, 
which he joined as a founding member of the PlayStation business in 1994 and supported its growth  
to over €3bn and 1000 employees. In addition to providing strong financial management, his previous 
responsibilities have been broad-ranging, including Finance, IT, Digital Operations and Business 
Transformation. Andrew was appointed to the role of Group Finance Director in July 2014. He is a  
Member of the Institute of Chartered Accountants.
26 KEYWORDS STUDIOS PLC David Reeves (68)
Independent Non-Executive Director
David has spent over 30 years in management roles within multinational companies. He began his 
career as an operational research consultant before moving overseas with RJ Reynolds Nabisco where 
he worked from 1979 to 1991, becoming the Marketing Director in 1986 and Worldwide Marketing 
Director in 1989. In 1991, David served as the General Manager and Vice President of Marketing in 
Tokyo for Mitsubishi Shoji JV Technology Company. David has considerable experience in the computer 
entertainment industry. David was the Managing Director for Sony Computer Entertainment 
(PlayStation) from 1995 until his appointment as its Executive Vice President in 1999 and President  
in 2003. Throughout his career, David has developed knowledge of the various working styles of 
European, American and Asian corporations. He was appointed to the Board of Keywords Studios 
Limited on 29 May 2013.
Giorgio Guastalla (46)
Non-Executive Director
Giorgio Guastalla is co-founder of Keywords. Prior to establishing Keywords in Ireland in 1998, Giorgio 
held various positions in marketing and IT at Brent International PLC based in the US, Spain, the UK and 
France. In 2002 Giorgio founded Italicatessen Ltd, a company operating in the food sector. Giorgio was 
CEO of Keywords until 2009 before concentrating on his other business interests and moving to a 
non-executive Director role at Keywords Studios.
27 ANNUAL REPORT AND ACCOUNTS 2015
Governance I III Directors’ Report
The Directors present the annual report together with both the audited consolidated financial statements and the parent company (Keywords Studios Plc) 
financial statements for the year ended 31 December 2015.
Disclaimer
The purpose of this Annual Report & Financial Statements is to provide information to the members of the Company. The Annual Report & Financial 
Statements have been prepared for, and only for, the members of the Company, as a body, and no other persons. The Company, it’s Directors and employees, 
agents or advisers do not accept or assume responsibility to any other person to whom this document is shown or into whose hands it may come and any such 
responsibility or liability is expressly disclaimed.
The Annual Report & Financial Statements contain certain forward-looking statements with respect to the operations, performance and financial condition  
of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ 
materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this Annual 
Report & Financial Statements and the Company undertakes no obligation to update these forward-looking statements. Nothing in this Annual Report & 
Financial Statements should be construed as a profit forecast. 
Dividends
The results for the year are set out from page 36. Dividends paid and proposed are set out on page 50. The Board is proposing a final dividend of 0.81p per share 
following the payment of an interim dividend of 0.40p per share on 23 October 2015. The proposed total dividend for the year is therefore 1.21p per share.
Directors and Changes to the Board
The Directors of the Company during the year were Ross Graham, Andrew Day, Andrew Lawton, David Reeves and Giorgio Guastalla. There were no changes  
in the year. 
Details of members of the Board at 31 December 2015 are set out on pages 26 and 27 .
Going Concern
In view of the Group’s resources, cash at 31 December 2015 of €19.0m, free cash flow in 2015 of €3.1m, results of operations, excluding acquisition and 
integration costs, and the overall financial condition of the Group, the Directors have reasonable expectation that the Group has adequate resources to 
continue in operation for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing the financial statements.
Political Donations
No political donations were made in the year.
Directors and Their Interests
A list of Directors, their interests in the ordinary share capital of the Company, their interests in its long-term performance share plan and details of their 
options over the ordinary share capital of the Company are given in the Directors’ remuneration report on page 31. No director had a material interest in any 
significant contract, other than a service contract or contract for services, with the Company or any of its operating companies at any time during the year.
The names of all persons who, at the year end, were Directors of the Company can be found on pages 26 and 27 under The Board of Directors.
Corporate Governance
Compliance with UK Corporate Governance Code
Keywords is committed to high standards of corporate governance throughout the Group. As a company whose shares are traded on AIM, it is not required to 
comply with all the requirements of the UK Corporate Governance Code 2014 (‘the Code’). However, the Board recognises the importance of, and is committed 
to, ensuring that effective corporate governance procedures are in place as appropriate for a public company of its size and complexity and in the light of the 
risks and challenges it faces. 
The Group’s corporate governance arrangements are set out below:
The Board
The Board is comprised of two Executive and three Non-Executive Directors. The Board considers that Ross Graham and David Reeves are independent in 
character and judgement and that there are no relationships or circumstances which are likely to affect their independent judgement.
The Board is responsible for the overall management of Keywords, our strategy and long-term objectives. It provides leadership to Keywords having regard  
to the interests of shareholders and other stakeholders.
Audit Committee
The Audit Committee is chaired by David Reeves. Ross Graham is the other Committee member. The Audit Committee is responsible for assisting the Board  
in fulfilling its financial and risk responsibilities. The Audit Committee oversees our financial reporting, risk management and internal control procedures, and 
reviews the work of external auditors.
Remuneration Committee
The Remuneration Committee is responsible for determining the remuneration of the Chairman, executive Directors, the Company Secretary and senior 
executives of Keywords.
For further information please see pages 31 and 32.
Internal controls and risk management
The Board has overall responsibility for the Group’s system of internal controls. The system is designed to manage, rather than eliminate the risk of failure to 
achieve business objectives, and can only provide reasonable assurance against material misstatement or loss.
28 KEYWORDS STUDIOS PLC The Directors believe that the Group has internal control systems in place appropriate to the size and nature of the business. The key elements are:
• Group Board Meetings, at a minimum of eight times per year, with reports from and discussions with senior executives on performance and key risk areas  
in the business;
• Monthly financial reporting, for the Group and for each subsidiary, of actual performance compared to budget and the prior year;
• Annual budget setting; and
• A defined organisational structure with appropriate delegation of authority.
The Board also receives a report from the external auditor on matters identified in the course of the statutory audit.
Substantial Shareholdings
At 31 December 2015, the Company had been notified, in accordance with the Disclosure and Transparency Rules, of the following interests in its ordinary 
share capital:
Name Shares %
P.E.Q Holdings Limited 11,978,736  22.2 
Andrew Day 5,296,573 9.9 
Schroder Investment Management 4,904,843  9.1 
Invesco Perpetual 3,988,206  7.4 
Hargreave Hale 3,975,380  7.4 
Liontrust Asset Management 3,840,169  7.1 
Kabouter Management 3,015,783  5.6 
Artemis Investment Management 2,512,549  4.7 
Legal & General Investment Management 1,327 ,000  2.5 
Future Developments
Important events since the financial year end are described on page 24 of the Chief Executives Report and future developments are described in the strategy 
section of the Strategic report on page 08.
People and Organisation
Keywords is, and always has been, dependent on the quality and commitment of its entire staff to provide and maintain the high levels of services expected 
by the Group’s clients. 
The average headcount reached 1,273 for 2015 with peak employment of 1,410 in August 2015. Keywords permanent staff complement averaged 684 
during 2015. This permanent headcount is supplemented with employees on short term contracts as activity changes throughout the year.
The Group continues to give full and fair consideration to applications for employment made by disabled persons, having regard to their respective aptitudes 
and abilities. The policy includes, where practicable, the continued employment of those who may become disabled during their employment and the provision 
of training and career development and promotion, where appropriate. The Group has continued its policy of employee involvement by making information 
available to employees on matters of concern to them. Many employees are stakeholders in the Company through participation in share option schemes and  
a long-term performance share plan. 
The Group has not disclosed further details on employment of disabled persons or employee involvement as it has fewer than 250 employees within the UK.
Corporate Responsibility
Keywords seeks to be a socially responsible Group which has a positive impact on the communities it operates in. By the nature of the business, we employ  
a diverse workforce, with many nationalities. No discrimination is tolerated, and we endeavour to give all employees the opportunity to develop their 
capabilities. We provide an excellent working environment, the latest technology and appropriate training.
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report & Financial Statements.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the Group and 
Company financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). 
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of 
affairs of the Company and the Group and of the profit or loss of the Group for that period. The Directors are also required to prepare financial statements  
in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.
In preparing these financial statements the Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether IFRS as adopted by the EU have been followed, subject to any material departures disclosed and explained in the Group and Company 
financial statements respectively; and
• Prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the Company will continue in business.
29 ANNUAL REPORT AND ACCOUNTS 2015
Governance I III Statement of Directors’ Responsibilities continued
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with 
reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements and the 
Directors’ remuneration report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group 
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors as at the date of this report, whose names and functions are listed in the Board of Directors on pages 26 and 27 , confirm that:
• So far as the Director is aware, there is no relevant audit information of which the Company’s auditors are unaware; and
• The Director has taken all the steps that he or she ought to have taken as a Director in order to make himself/herself aware of any relevant audit 
information and to establish that the Company’s auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
Website Publication
The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published 
on the Group’s websites in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may 
vary from legislation in other jurisdictions. The maintenance and integrity of the Group’s websites is the responsibility of the Directors. The Directors’ 
responsibility also extends to the ongoing integrity of the financial statements contained therein.
By Order of the Board
Andrew Lawton, 
Company Secretary
5 April 2016
Directors’ Report continued
30 KEYWORDS STUDIOS PLC Dear Fellow Shareholder,
It is my pleasure to present the Directors’ remuneration report for the period ended 31 December 2015.
It is my hope that you find this a clear and comprehensive report and I look forward to hearing the views of our investors on the information presented here 
over the coming months. We will carefully monitor emerging practice in this area as well as guidance from investor representative groups.
We operate a simple remuneration structure made up of base salary and benefits, a bonus plan and share option scheme, and a long-term incentive plan,  
which provide a clear link between pay and our key strategic priorities.
The Board of Directors
The Board of Directors have a duty to act in the best interests of their shareholders when determining remuneration. It is their responsibility to promote the 
long-term success of the company while also considering the employees, suppliers, customers and other external factors which may be impacted by 
remuneration decisions.
Executive directors will be responsible for developing and implementing remuneration strategy for the Group. Non-executive directors will be responsible for 
constructively reviewing and contributing to this strategy. 
The Remuneration Committee
The members of the Remuneration Committee are Giorgio Guastalla (Committee Chairman), David Reeves and Ross Graham. The members are all 
Non-Executive Directors.
The remit of the Committee is primarily to determine and agree with the Board the framework or broad policy for the remuneration of the Company’s 
Executive Directors, and if required by the Board, the Senior Management of the Group. 
Non-executive directors, who are the members of the remuneration committee, should oversee Executive remuneration. The remuneration of the Chairman 
of the Board is determined by the Remuneration Committee. The remuneration of the Non-Executives is a matter for the Executive member of the Board in 
conjunction with the committee Chairman.
No Director or Senior Manager is involved in any discussion or decision about his own remuneration.
The Remuneration Committee consists of non-executive directors all of whom are independent with no personal financial interest, other than as 
shareholders, in the decisions of the Committee. The remuneration committee secretary will be the company human resource manager. By invitation, other 
members of the Board may attend the Committee’s meetings. 
Meetings
The Remuneration Committee is planned to meet at least three times a year. In the year ended 31 December 2015, the remuneration committee met on 
three occasions.
Directors’ Emoluments and Pension Contributions
The aggregate remuneration for the Directors of the Company, for service in all capacities for the period year ended 31 December 2015 was €645,727 
(2014: €510,128). The remunerations of individual directors were as follows.
2015 2014
Salary 
or fees
€
Bonus
€
Pension
€
Share  
options
€
Total
€
Salary 
or fees
€
Bonus
€
Pension
€
Share 
options
€
Total
€
Andrew Day 187,395 61,983 – 38,546 287,924 125,056 62,500 – 28,043 215,599
David O’Connor – – – – – 56,817 – – – 56,817
David Reeves 66,610 – – – 66,610 55,965 – – – 55,965
Giorgio Guastalla 48,156 – – – 48,156 43,383 – – – 43,383
Ross Graham 68,812 – – – 68,812 57,948 – – – 57,948
Andrew Lawton 120,509 37,190 – 16,526 174,225 54,910 16,537 – 8,969 80,416
491,482 99,173 – 55,072 645,727 394,079 79,037 – 37,012 510,128
Directors’ Interest in Shares
The interests of each person who was a director of the Company as at 31 December 2015 (together with interests held by his or her connected 
persons) were:
2015
Number
2014
Number
Giorgio Guastalla
1
10,780,862 10,780,862
Andrew Day 5,296,573 5,296,573
David Reeves 22,510 16,260
Ross Graham 58,440 30,490
16,158,385 16,124,185
1 Giorgio Guastalla’s indirect shareholding arises out of his 90% holding in P.E.Q. Holdings Limited.
Directors’ Remuneration Report
31 ANNUAL REPORT AND ACCOUNTS 2015
Governance I III Directors’ Interest in Shares continued
The outstanding awards granted to each director of the Company are as follows.
Long Term Investment Plan
Start of year
Number
Awarded
Number
Vested
Number
Lapsed
Number
End of year
Number
Vesting 
date
Andrew Day 86,593 – – – 86,593 12 July 2016
– 35,000 – – 35,000 1 June 2018
Andrew Lawton 50,000 0 – – 50,000 3 July 2017
– 35,000 – – 35,000 1 June 2018
136,593 70,000 – – 206,593 –
Share Option Plan
Start of year
Number
Awarded
Number
Vested
Number
Lapsed
Number
End of year
Number
Vesting
date
Andrew Day 21,167 – – – 21,167 July 12, 2015
21,167 – – – 21,167 July 12, 2016
21,168 – – – 21,168 July 12, 2017
 63,502 – – – 63,502 –
Awards of shares will vest on the dates shown. In the event that a Director ceases to be an employee of the Group for reasons other than death, retirement, 
redundancy, injury, ill-health or disability before the vesting date, then the rights to the award will lapse, unless the Remuneration Committee 
recommend otherwise.
Awards are not subject to further performance conditions once granted.
Transactions with Directors
During the year, there were no material transactions between the Company and the Directors, other than their emoluments.
All transactions between the Group and the Directors are set out in the notes to the financial statements, including note 25 on related party transactions.
Giorgio Guastalla,
Chairman of the Remuneration Committee
Directors’ Remuneration Report continued
32 KEYWORDS STUDIOS PLC 33 ANNUAL REPORT AND ACCOUNTS 2015
Governance I III
The Committee reserves the right to make any remuneration payments and payments for loss of office, notwithstanding that they are not in line with the 
policy set out below, where the terms of the payment were agreed (i) before the policy came into effect or (ii) at a time when the relevant individual was not  
a director of the Company and, in the opinion of the Committee, the payment was not in consideration for the individual becoming a director of the Company. 
For these purposes “payments” includes the Committee satisfying awards of variable remuneration and, in relation to an award over shares, the terms of the 
payment are “agreed” at the time the award is granted.
The Remuneration Committee determines the Company’s policy on executive directors’ and if required, senior management remuneration. The objectives  
of this policy are:
• To reward executive directors and senior management in a manner that ensures that they are properly incentivised and motivated to perform in the best 
interests of shareholders. 
• To provide a level of remuneration required to attract and retain high calibre executive directors and senior management.
• To encourage value creation through consistent and transparent alignment with the agreed company strategy.
• The Remuneration Committee takes into account the performance of the individual, comparisons with peer company companies and reports from external 
independent consultants. The experience of the individual and his/her level of responsibility are also taken into account.
• Ensuring the total remuneration packages awarded to executive directors comprise of both performance-related and non-performance-related 
remuneration, designed to motivate the individual, align interests with shareholders and comply with corporate governance best practice.
• To ensure that any remuneration awarded is deserved and is aligned to the shareholders’ interests. 
Remuneration Components
Various remuneration components are combined to ensure an appropriate and balanced remuneration package that reflects the business unit, the employee’s 
position in the company and professional activity as well as market practice. 
The remuneration components are comprised of the following elements:
• Fixed remuneration (basic salary);
• Performance-based remuneration (variable salary); 
• Pension schemes;
• Other benefits; and 
• LTIP (long-term incentive plan).
For Non-Executive Directors there is only one component, a base fee.
Basic Salaries and Benefits
Basic salaries should initially be determined to reflect first the role and the responsibility of the individual within that role while also upholding the principle  
of paying no more than is necessary.
The basic salaries of executive directors and senior management are reviewed annually having regard to personal performance, company performance, 
significant changes in their responsibilities and competitive market practice.
Any increases in basic salary should be disclosed and justified. 
Performance Bonus
Under current arrangements, which will be reviewed annually by the Remuneration Committee, executive directors and senior management are eligible to 
participate in a bonus scheme. The bonus amount is a percentage of salary ranging from 20% to 50%, which is subject to the attainment of specific targets 
set for each individual. The portion of bonus earned in any one year depends on the Remuneration Committee’s assessment of each individual’s performance 
and the overall performance of the Company against predetermined turnover and profitability targets for the year. 
Performance targets are weighted 80 per cent towards the Company’s financial performance and 20 per cent towards personal performance.  
The Remuneration Committee will review targets and the weighting of performance measures each year. 
The bonus may not exceed the agreed percentage of the fixed salary, which level can only be achieved at a weighted target achievement of 100 per cent. 
Furthermore, the bonus will be cancelled at a weighted target achievement of less than 80 per cent.
Pension Entitlements
The Company does not operate any pension scheme or make pension provision for non-executive directors. At the discretion of the remuneration committee 
the executive directors and senior management may participate in a pension scheme facilitated by the Company. 
Benefits
During the period since incorporation, the Company did not contribute to any Employment related benefits. 
Share Options
Share option programmes are in place for permanent members of staff, including the Senior Management. The focus of the share option programmes is  
to retain and create long-term shareholder value. The intention of such grants is to ensure value creation and fulfilment of the company’s long-term goals. 
Long-Term Incentive Plan (LTIP)
The purpose of the LTIP is to incentivise delivery against total shareholder return. Share awards further the alignment of executives’ and 
shareholders’ interests.
LTIP grants can be made annually to a range of senior employees across the Company. Awards are made in the form of share options which vest subject  
to performance conditions. Performance conditions are measured over three financial years and are not retested. Conditions are reviewed annually.
Directors’ Remuneration Policy Report 34 KEYWORDS STUDIOS PLC
Leaver Treatment
Fair treatment will be extended to departing executives. Executives who resign or are dismissed for cause are, by default, not eligible for an annual bonus  
if they have left or are under notice at date of payment, and forfeit all LTIP shares.
At the Committee’s discretion good leavers (normally including such circumstances as retirement, death, disability, and redundancy) may be eligible for an 
annual bonus for the proportion of the bonus year served. However performance will be tested in line with the normal performance schedule. 
Directors’ Remuneration Policy Report continued 35 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Independent Auditor’s Report 
to the Members of Keywords Studios PLC
We have audited the financial statements of Keywords Studios plc for the year ended 31 December 2015 which comprise the Group and Parent Company 
Statements of Financial Position, the Group Statement of Comprehensive Income, the Group and Parent Company Statements of Cash Flows, the Group and 
Parent Company Statements of Changes in Equity, and the related notes. The financial reporting framework that has been applied in their preparation is 
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial 
statements, as applied in accordance with the provisions of the Companies Act 2006. 
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been 
undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, 
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation of the financial statements and  
for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with 
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council’s (FRC’s) 
Ethical Standards for Auditors. 
Website publication
The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published 
on the Company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which 
may vary from legislation in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the Directors. The Directors’ 
responsibility also extends to the ongoing integrity of the financial statements contained therein.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing  
(UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the FRC’s website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion: 
• the financial statements give a true and fair view of the state of the Group’s and the parent Company’s affairs as at 31 December 2015 and of the Group’s 
profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
• the Parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in 
accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors, Report for the financial year ended 31 December 2015 for which the financial 
statements are prepared is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not 
visited by us; or
• the Parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Teresa Morahan (Senior statutory auditor)
For and on behalf of BDO, statutory auditor,
Dublin 2, 
Ireland.
5 April 2016 36 KEYWORDS STUDIOS PLC
Consolidated Statement of Comprehensive Income
Years ended 31 December
Note
2015 
€’000
2014 
€’000
Revenues 4 57,951 37,293 
Operating costs (37,460) (25,981)
Multimedia tax credits 1,287 1,413
Gross profit 21,778 12,725
Share option expense   (392) (156)
Costs of acquisition and integration (1,089) (1,461)
Amortisation of intangible assets (857) (468)
Other administration expenses   (13,616) (7 ,566)
Administrative expenses (15,954) (9,651)
Operating profit 5 5,824 3,074
Financing income 6 70 516
Financing cost 6 (808) (155)
Profit before taxation 5,086 3,436
Tax expense 7 (1,832) (1,215)
Profit from operations 3,254 2,220
Other comprehensive income:
Items that will or may be reclassified to profit or loss
Exchange gains/(losses) on translation of foreign operations 763 (288)
Total comprehensive income: 4,017 1,932
Profit for the year attributable to:
Owners of the parent 3,363 2,220
Non-controlling interest (109) –
3,254 2,220 
Total comprehensive income for the year attributable to:
Owners of the parent 4,126 1,932
Non-controlling interest (109) –
4,017 1,932
Earnings per share Euro cent Euro cent
Basic earnings per ordinary share (Euro cent) 9 6.98 4.94
Diluted earnings per ordinary share (Euro cent) 9 6.87 4.93
The notes on pages 43 to 73 form an integral part of these consolidated financial statements.
On Behalf of the Board
  
Andrew Day      Andrew Lawton
Director        Director 
5 April 2016 37 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Consolidated Statement of Financial Position
Years ended 31 December
Note
2015
€’000
2014
€’000
Non-current assets
Property, plant and equipment 14 3,486  2,761 
Goodwill 12 23,893  14,711 
Intangible assets 13 3,782  2,967 
Deferred tax assets 29 971  436 
 32,132  20,874 
Current assets
Trade receivables 15 7,519  6,203 
Other receivables 16 8,320  5,644 
Short-term investments 18 27  259 
Cash and cash equivalents 17 19,018  11,014 
Deferred tax assets 29 – 377 
 34,884  23,498 
Total assets 67,016  44,371 
Equity
Share capital 19 646 551
Share premium 18,542 18,542
Merger reserve – restructuring (370) (370)
Merger reserve – acquisitions 22,479 5,667
Foreign exchange reserve 498 (265)
Shares held in EBT (804) –
Share option reserve 20 619 227
Retained earnings 10,293 7,667
 51,903  32,019 
Non-controlling interest (1,309) –
Total equity 50,594  32,019 
Current liabilities
Trade payables 21 2,761  2,322 
Other payables 22 8,452  6,881 
Loans and borrowings 23 1,163 –
Corporation tax liabilities 752  543 
13,128  9,746 
Non-current liabilities
Other payables 22 300  1,219 
Loans and borrowings 23 571 –
Deferred tax liabilities 29 2,423  1,388 
 3,294  2,607 
Total equity and liabilities 67,016  44,371  38 KEYWORDS STUDIOS PLC
Consolidated Statement of Changes in Equity
Share
capital
€’000
Share
premium
€’000
Merger
reserve
restructuring
€’000
Merger
reserve
acquisitions
€’000
Foreign
exchange
reserve
€’000
Shares
held
in EBT
€’000
Share
option
reserve
€’000
Retained
earnings
€’000
Total 
attributable
to equity 
holders
of parent
€’000
Non
controlling
interest
€’000
Total
equity
€’000
Balance at 1 January 2014 465 11,250 (370) – 23 – 71 6,056 17,494 – 17,494
Profit for the year – – – – – – – 2,220 2,220 – 2,220
Other comprehensive income – – – – (288) – – – (288) – (288)
Total comprehensive income 
for the year  – –  – – (265) – – 8,276 19,426 – 19,426
Contributions by and 
contributions to the owners
Share option expense (note 20) – – – – – – 156 – 156 – 156
Dividends paid (note 10) – – – – – – – (609) (609) – (609)
Shares issued for cash (note 19) 49 7,293 – – – – – – 7,342 – 7,342
Shares issued upon acquisitions 37 – – – – – – – 37 – 37
Merger reserve arising on group 
acquisitions – – – 5,667 – – – – 5,667 – 5,667
Contributions by and 
contributions to the owners 86 7,293 – 5,667 –  – – – – – –
Balance at 31 December 
2014 551 18,542 (370) 5,667 (265) – 227 7,667 32,019 – 32,019
Profit for the year – – – – – – – 3,363 3,363 (109) 3,254
Other comprehensive income – – – – 763 – – – 763 – 763
Total comprehensive income 
for the year  – – – – 763 – – 3,363 4,126 (109) 4,017
Contributions by and 
contributions to the owners
Share option expense (note 20) – – – – – – 392 – 392 – 392
Dividends paid (note 10) – – – – – – – (737) (737) – (737)
Shares bought for EBT – – – – – (804) – – (804) – (804)
Shares issued for cash (note 19) 78 – – 14,118 – – – – 14,196 – 14,196
Shares issued upon acquisitions 17 – – 2,694 – – – – 2,711 – 2,711
Liabilities on acquisition of 
Kite Team – – – – – – – – – (50) (50)
Purchase of put option for 
acquisition of remaining 50% 
of Kite Team (note 31) – – – – – – – – – (1,150) (1,150)
Contributions by and 
contributions to the owners 95 – – 16,812 – (804) 392 (737) 15,758 (1,200) 14,558
Balance at 31 December 
2015 646 18,542 (370) 22,479 498 (804) 619 10,293 51,903 (1,309) 50,594 39 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Consolidated Statement of Cash Flows
 Years ended 31 December 
Note
2015
€’000
2014
€’000
Cash flows from operating activities
Profit after tax 3,254 2,220
Adjustments to reconcile net income to net cash provided by operating activities 1,514 202
Income taxes (paid)/refunded (1,362) (522)
Net cash provided by operating activities 3,406 1,900
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired 31/32 (7,409) (8,889)
Acquisition of property, plant and equipment 14 (1,635) (1,252)
(Acquisition)/disposal of short term investments 18 232 260
Interest received 6 70 49
EBT Share Purchase (804) –
Net cash used in investing activities (9,546) (9,833)
Cash flows from financing activities
Repayment of borrowings in acquired company – (2,996)
Repayment of loans to Directors of acquired companies (300)
Loan to finance Multi-Media Tax Credits 1,110 –
Dividends paid 10 (737) (609)
Shares issued 19 14,213 7,342
Share issuance expenses (14) –
Interest paid 6 (128) (61)
Net cash used in financing activities 14,144 3,676
Increase in cash and cash equivalents 8,004 (4,257)
Cash and cash equivalents at beginning of the year 11,014 15,271
Cash and cash equivalents at end of period 17 19,018 11,014
Adjustments to reconcile net income to net cash provided by operating activities
 Years ended 31 December 
Note
2015
€’000
2014
€’000
Income and expenses not affecting operating cash flows
Depreciation 5 1,297 868
Intangibles amortisation 5 857 468
Income tax expense 7 1,832 1,215
Share option expense 20 392 156
Foreign currency revaluation of fixed assets 14 – (161)
Profit/Loss on disposal of fixed assets 14 20 66
Loss arising on payment of deferred consideration 194 –
Interest received 6 (70) (49)
Share issuance costs 14 –
Interest paid 6 128 61
Changes in operating assets and liabilities
Decrease/(Increase) in trade receivables 29 (2,930)
(Increase)/Decrease in other receivables (2,533) (2,090)
Increase in trade and other payables (646) 2,598
1,514 202 40 KEYWORDS STUDIOS PLC
 Years ended 31 December 
Note
2015  
€’000
2014  
€’000
Non-current assets
Investment in subsidiaries 24 12,765 12,765 
Other receivables 16 3,300 3,000 
16,065 15,765 
Current assets
Other receivables 16 18,093 15,798 
Cash and cash equivalents 17 11,656 701 
29,749 16,499 
Total assets 45,814 32,265 
Equity
Share capital 19 646 551
Share premium 18,542 18,542
Merger reserve – restructuring 5,313 5,313
Merger reserve – acquisitions 22,479 5,667
Shares held in EBT (804) –
Share option reserve 20 619 227
Retained earnings (2,598) (317)
Total equity 44,197 29,983 
Current liabilities
Corporation tax liabilities 4 4 
Trade payables 21 132 74 
Other payables 22 1,481 1,132 
1,617 1,210 
Non-current liabilities
Other payables 22 – 1,071 
– 1,071 
Total equity and liabilities 45,814 32,265 
The notes on pages 43 to 73 form an integral part of these financial statements. The financial statements were approved and authorised for issue by the 
Board on 5 April 2016.
On Behalf of the Board
  
Andrew Day      Andrew Lawton
Director        Director 
5 April 2016
Company Statement of Financial Position 41 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Share capital  
€’000
Share 
premium  
€’000
 
Merger 
reserve 
restructuring  
€’000
Merger 
reserve 
acquisitions  
€’000
Shares held in 
EBT  
€’000
Share option 
reserve  
€’000
Retained 
earnings  
€’000
Total 
equity  
€’000
Balance at 1 January 2014 465 11,250 5,313 – – 71 897 17,995
Total comprehensive income for the year – – – – – – (606) (606)
Total comprehensive income for the year      (605) (605)
Contributions by and contributions to the owners
Share option expense (note 20) – – – – – 156 – 156
Dividends paid (note 10) – – – – – – (609) (609)
Shares issued for cash (note 19) 49 7,293 – – – – – 7,342
Shares issued upon acquisitions 37 – – – – – – 37
Merger reserve arising on group
acquisitions – – – 5,667 – – – 5,667
Contributions by and contributions to the owners 86 7,293 – 5,667 156 (609) 12,593
Balance at 31 December 2014 551 18,542 5,313 5,667 – 227 (317) 29,983
Total comprehensive income for the year – – – – – – (1,576) (1,576)
Total comprehensive income for the year      (1,576) (1,576)
Contributions by and contributions to the owners
Share option expense (note 20) – – – – – 392 – 392
Dividends paid (note 10) – – – – – – (737) (737)
Dividend received from subsidiaries – – – – – – 32 32
Treasury shares ringfenced for EBT – – – – (804) – – (804)
Shares issued for cash (note 19) 95 – – 14,414 – – – 14,509
Shares issued upon acquisitions – – – 2,398 – – – 2,398
Contributions by and contributions to the owners 95 – – 16,812 (804) 392 (705) 15,790
Balance at 31 December 2015 646 18,542 5,313 22,479 (804) 619 (2,598) 44,197
Company Statement of Changes in Equity 42 KEYWORDS STUDIOS PLC
Company Statement of Cash Flows
 Years ended 31 December 
Note
 2015  
€’000 
 2014  
€’000 
Cash flows from operating activities
Profit/ (Loss) after tax (1,575) (606)
Adjustments to reconcile net income to net cash provided by operating activities 720 (16,405)
Income taxes (paid)/refunded (4) (28)
Net cash provided by operating activities (859) (17,039)
Cash flows from investing activities
Acquisition of subsidiaries (897) (2,735)
Acquisition of property, plant and equipment – –
(Acquisition)/disposal of short term investments – –
Interest received 20 20
EBT Share Purchase (804) –
Dividends Received from subsidiaries 33 –
Net cash used in investing activities (1,648) (2,715)
Cash flows from financing activities
Repayment of borrowings in acquired company – –
Dividends paid (737) (609)
Shares issued 14,213 10,342
Share issuance expenses (14) –
Interest paid – (0)
Net cash used in financing activities 13,462 9,732
(Decrease)/increase in cash and cash equivalents 10,955 (10,021)
Cash and cash equivalents at beginning of the period 701 10,723
Cash and cash equivalents at end of period 11,656 701
Adjustments to reconcile net income to net cash provided by operating activities
 Years ended 31 December 
 2015  
€’000 
 2014  
€’000 
Income and expenses not affecting operating cash flows
Income tax expense 4 9
Share option expense 392 156
Loss arising on payment of deferred consideration 194 (20)
Interest received (20) (20)
Share issuance costs 14 –
Interest paid – 0
Changes in operating assets and liabilities
(Increase)/Decrease in other receivables 98 (16,900)
Increase in trade and other payables 38 350
720 (16,405) 43 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
1 Basis of preparation
Keywords Studios plc (the “Company”) is a company incorporated in the UK. These consolidated financial statements include the financial statements of the 
Company and its subsidiaries (the “Group”) made up to 31 December 2015. The Group was formed on 8 July 2013 when Keywords Studios Plc (formerly 
Keywords Studios Limited) acquired the entire share capital of Keywords International Limited through the issue of 31,901,332 ordinary shares.
The parent company financial statements present information about the Company as a separate entity and not about its Group.
The consolidated and Company financial statements have been prepared in accordance with International Financial Reporting Standards, International 
Accounting Standards and interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the European Union 
(“adopted IFRSs”). 
New standards, interpretations and amendments effective from 1 January 2015
There were no new standards or interpretations implemented by the group for the first time for periods beginning on or after 1 January 2015. None of the 
amendments to Standards that are effective from that date had a significant effect on the Group’s financial statements.
New standards, interpretations and amendments not yet effective
There were no new standards or interpretations available for early adoption for the first time for periods beginning on or after 1 January 2015, which have 
been implemented by the Group. None of these standards are expected to have a material effect on the Group’s financial statements. A detailed review of  
the impact of IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases has however not been completed at this point, and therefore the Group  
is unable to conclude on what impact they may have on the Groups financial statements. 
The financial statements for 2015 have been prepared in thousands (€’000) and the comparative numbers have also been revised to the same format. In 
2014 the financial statements were rounded to one (€). The financial statements are presented in Euro (€) which is the functional currency of the Group.
2 Significant accounting policies
Basis of Consolidation
Where the company has control over an investee, it is classified as a subsidiary. The company controls an investee if all three of the following elements are 
present; power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable 
returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.
De-facto control exists in situations where the company has the practical ability to direct the relevant activities of the investee without holding the majority 
of the voting rights. In determining whether de-facto control exists the company considers all relevant facts and circumstances, including:
• The size of the company’s voting rights relative to both the size and dispersion of other parties who hold voting rights;
• Substantive potential voting rights held by the company and by other parties;
• Other contractual arrangements; and
• Historic patterns in voting attendance.
The consolidated financial statements present the results of the company and its subsidiaries (“the Group”) as if they formed a single entity. Intercompany 
transactions and balances between Group companies are eliminated in full.
The acquisition of Keywords International Limited was deemed to be a ‘combination under common control’ as ultimate control before and after the 
acquisition was the same. As a result, these transactions were outside the scope of IFRS 3 “Business combinations” and have been accounted for under  
the principles of merger accounting as set out under UK GAAP. 
As part of the Group reconstruction in 2013, the Company issued 31,901,332 shares at a value of £1.23 each, being the flotation price, as part of a share  
for share exchange with the shareholders of Keywords International Limited. The £0.01 nominal value of the shares issues was accounted for in Issued Share 
Capital. On the 2013 consolidated balance sheet, the difference between the nominal value of shares issued by the company as consideration for the shares 
in Keywords International Limited, and the nominal value of the shares in Keywords International Limited was treated as a merger reserve arising on group 
reconstruction. On the Company balance sheet, the excess of net book value of the assets held by Keywords International Limited, at the date of the share  
for share exchange, over the nominal value of the shares issued was treated as a merger reserve.
Business Combinations
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Consolidated Statement of 
Financial Position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date.  
The results of acquired operations are included in the consolidated income statement from the date on which control is obtained. They are deconsolidated 
until the date on which control ceases.
Any contingent consideration payable is recognised at fair value at the acquisition date and is split between current liabilities and long term liabilities 
depending on when it is due. When the consideration becomes more certain the fair value of the contingent consideration will be revalued and any change  
will be recognised in the statements of comprehensive income.
Goodwill
Goodwill represents the excess of the cost of a business combination over, in the case of business combinations completed prior to 1 January 2010, the 
Group’s interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired and, in the case of business combinations completed on  
or after 1 January 2010, the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired.
For business combinations completed prior to 1 January 2010, cost comprised the fair value of assets given, liabilities assumed and equity instruments issued, 
plus any direct costs of acquisition. Changes in the estimated value of contingent consideration arising on business combinations completed by this date were 
treated as an adjustment to cost and, in consequence, resulted in a change in the carrying value of goodwill.
Notes Forming Part of the Consolidated and Company Financial Statements 44 KEYWORDS STUDIOS PLC
2 Significant accounting policies continued
For business combinations completed on or after 1 January 2010, cost comprises the fair value of assets given, liabilities assumed and equity instruments 
issued, plus the amount of any non-controlling interests in the acquiree plus, if the business combination is achieved in stages, the fair value of the existing 
equity interest in the acquiree. Contingent consideration is included in cost at its acquisition date fair value and, in the case of contingent consideration 
classified as a financial liability, remeasured subsequently through profit or loss. For business combinations completed on or after 1 January 2010, direct  
costs of acquisition are recognised immediately as an expense.
Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated statement of comprehensive income.
Impairment
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other 
non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be 
recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset  
is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which 
it belongs for which there are separately identifiable cash flows; its cash generating units (‘CGUs’). Goodwill is allocated on initial recognition to each of the 
Group’s CGUs that are expected to benefit from a business combination that gives rise to the goodwill. The Group analyses its Cash Generating Units on an 
entity by entity basis. 
Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income. An impairment 
loss recognised for goodwill is not reversed.
Foreign Currency
Transactions entered into by Group entities in a currency other than the currency of the primary economic environment in which they operate (their 
“functional currency”) are recorded at the rates ruling when the transactions occur. The Functional currency for the Company is euro. Foreign currency 
monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled 
monetary assets and liabilities are recognised immediately in profit or loss.
On consolidation, the results of overseas operations are translated into euro at rates approximating to this ruling when the transactions took place. All assets 
and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. 
Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in 
other comprehensive income and accumulated in the foreign exchange reserve.
Exchange differences recognised in profit or loss in Group entities’ separate financial statements on the translation of long-term items forming part of the 
Group’s net investment in the overseas operation concerned are classified to other comprehensive income and accumulated in the foreign exchange reserve 
on consolidation.
On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date 
of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss on disposal.
Revenue Recognition
Revenue recognised represents the consideration received or receivable for the rendering of services, net of sales taxes, rebates discounts and after 
eliminating intercompany sales. Services are provided based on agreed client instructions and when projects are in progress at the period end, revenue is 
recognised to the extent that services have been provided net of any provisions. The Multimedia tax credits received in Montreal on testing services are 
treated as a deduction against direct costs.
Share Based Payments
The Company issues equity settled share-based payments to certain employees and Directors under a share options plan and a long term incentive 
plan (“LTIP”).
The fair value determined at the grant date is expensed on a straight line basis over the vesting period, based on the Company’s estimate of shares that will 
eventually vest and adjusted for the effect of non-market-based vesting conditions. At each reporting date, the Company revises its estimate of the number 
of equity instruments expected to vest as a result of the effect of non-market based vesting conditions. The impact of the revision of the original estimates, 
if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves.  
The Company has no legal or constructive obligation to repurchase or settle the options in cash.
Where share-based payments are issued to employees of subsidiary companies, the annual cost of the option is expensed in the subsidiary company, with 
a corresponding increase in capital contribution from the Company. This annual cost is recorded as an increase in the Company’s cost of investment in 
that subsidiary.
Share Option Plan
These are measured at fair value, taking into account market vesting conditions but not non-market vesting conditions on the grant date using a 
Black-Scholes option pricing model which calculates the fair value of an option by using the vesting period, the expected volatility of the share price, the 
current share price, the exercise price and the risk free interest rate. The fair value of the option is amortised over the vesting period, with one third of the 
options vesting after two years, one third after three years, and the balance vest after four years. The only vesting condition is continuous service. There is 
no requirement to revalue the option at any subsequent date. The charge that is recognised is adjusted to reflect failure to vest due to non-achievement of  
a non-market vesting condition but not failure to vest due to the non-achievement of a market vesting condition.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 45 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
LTIP
An alternative share plan was introduced to give awards to Directors and staff, subject to outperforming the Numis Small Cap (excluding Investment Trusts) 
index in terms of shareholder return over a three year period. There are three different award levels; one third of the share options vest if the company shall 
exceed the Total Shareholder Return of the Numis Small Cap Index by not less than 10%, two thirds if the shareholder return exceeds by over 20% and 100% 
of the share options if the shareholder return exceeds by over 30%.
These are measured at fair value, taking into account market vesting conditions but not non-market vesting conditions, at the date of grant, measured by 
using the Monte Carlo binomial model. The charge that is recognised is adjusted to reflect failure to vest due to non-achievement of a non-market vesting 
condition but not failure to vest due to the non-achievement of a market vesting condition.
Dividend Distribution
Final dividends are recorded in the Group’s financial statements in the period in which they are approved by the Group’s shareholders. Interim dividends are 
recognised when paid.
Income Taxes and Deferred Taxation
Provision for income taxes is calculated in accordance with the tax legislations and applicable tax rates in force at the reporting date in the countries in which 
the Group companies have been incorporated.
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs 
from its tax base, except for differences arising on:
• The initial recognition of goodwill;
• The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither 
accounting or taxable profit; and
• Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable 
that the difference will not reverse in the foreseeable future.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to 
apply when the deferred tax liabilities/(assets) are settled/(recovered).
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax 
assets and liabilities relate to taxes levied by the same tax authority on either:
• The same taxable Group company; or
• Different Group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the assets and settle the liabilities 
simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered.
Property, Plant and Equipment
Property, plant and equipment comprise computers, leasehold improvements, and office furniture and equipment, and are stated at cost less accumulated 
depreciation. Carrying amounts are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be 
recoverable. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.
Depreciation is calculated to write off the cost of fixed assets on a straight line basis over the expected useful lives of the assets concerned. The principal 
annual rates used for this purpose are:
%
Computers and Software 33.33
Office furniture and equipment 10.00
Building and leasehold improvements over the length of the lease
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in the consolidated statement of 
comprehensive income.
Intangible Assets
Intangible assets, separately identified from goodwill acquired as part of a business combination, are initially stated at fair value. The fair value attributed is 
determined by discounting the expected future cashflow to be generated from the asset at the risk adjusted average weighted cost of capital appropriate to 
the intangible asset. The assets are amortised over their useful economic lives which is deemed to be 5 years.
Financial Assets
Loans and Receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through 
the provision of services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at 
fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective 
interest rate method, less provision for impairment.
The Group’s receivables comprise trade and other receivables and cash and cash equivalents in the statement of financial position. 46 KEYWORDS STUDIOS PLC
2 Significant accounting policies continued
Trade receivables, which principally represent amounts due from customers, are initially recognised, thereafter, are recognised at amortised cost. An estimate 
for doubtful debts is made when there is objective evidence that the Group will not be able to collect amounts due according to the original terms of 
receivables. Bad debts are written off when identified.
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short term highly liquid investments with original maturities of 
three months. Where cash is on deposit with maturity dates greater than three months, it is disclosed as short-term investments.
Share Capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group’s 
ordinary shares are classified as equity instruments.
Financial Liabilities
Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective 
interest method.
Leased Assets
Where substantially all of the risks and rewards of ownership are not transferred to the Group (“operating lease”), the total rental payables are charged to the 
consolidated statement of comprehensive income on a straight-line basis over the term of the lease.
Finance Leases
Where substantially all of the risks and rewards incidental to ownership of a leased asset have been transferred to the Group (a “finance lease”), the asset is 
treated as if it had been purchased outright. The amount initially recognised as an asset is the lower of the fair value of the leased property and the present 
value of the minimum lease payments payable over the term of the lease. The corresponding lease commitment is shown as a liability. Lease payments are 
analysed between capital and interest. The interest element is charged to the consolidated statement of comprehensive income over the period of the lease 
and is calculated so that it represents a constant proportion of the lease liability. The capital element reduces the balance owed to the lessor.
Employee Benefit Trust
Ordinary Shares purchased by the Employee Benefit Trust on behalf of the Parent Company under the Terms of the Share Option Plan are deducted from 
equity on the face of the Consolidated Statement of Financial Income. No gain or loss is recognised in relation to the purchase, sale, issue or cancellation of 
the Parent Company’s Ordinary Shares.
3 Critical accounting estimates and judgements
The preparation of consolidated financial statements under IFRS requires the Directors to make estimates and judgements that effect the application of 
policies and reported amounts.
The areas requiring the use of estimates and critical judgements that may significantly impact the Group’s earnings and financial position are revenue 
recognition in respect of accrued income and computation of income taxes. Estimates and judgements are continually evaluated and are based on historic 
experience and other factors including expectations of future events that are believed to be reasonable. Actual results may differ from these estimates 
and assumptions.
Income Taxes
The Group is subject to income tax in several jurisdictions and judgement may be required in determining the provision for income taxes. During the ordinary 
course of business, there are transactions and calculations for which the ultimate tax determination may be uncertain. As a result, the company recognises 
tax liabilities based on an understanding of taxation legislation in particular jurisdictions and any related estimates of whether taxes and/or interest will be 
due. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. To the extent that the final 
tax outcome of these matters is different than the amounts recorded, such differences will impact income tax expense in the period in which such 
determination is made.
Goodwill and Intangible Assets Arising on Acquisition
The value of goodwill and intangible assets recognised on the Group’s acquisitions during the year, were derived from the projected cashflows for those 
businesses at the time of acquisition, based on management forecasts. The accuracy of the valuation would therefore be compromised by any differences 
between the forecasts and the levels of business activity that the entity might actually have been able to generate in the absence of acquisition. The 
valuation will also be affected by the accuracy of the discount factor used.
The carrying value of goodwill and intangibles assets is dependent on the accuracy of the inputs into the impairment test detailed in note 12.
Multi Media Tax Credits
The submissions for the repayment of Multi-Media Tax Credits in Montreal are made on an annual basis to Investment Quebec and Revenue Quebec. Both the 
costs and basis of the claim are subject to audit by the authorities prior to approval and payment of the claim. While the group complete a detailed exercise in 
relation to the claim and to the accrual there may be occasions where the actuals amounts may be less than accrued which will lead to a change in the 
amounts recognised within the financial statements.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 47 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
4 Segmental analysis
Management considers that the Group’s activity as a single source supplier of Localisation and Localisation Testing Services constitutes one operating and 
reporting segment, as defined under IFRS 8. 
Management review the performance of the Group by reference to Group-wide profit measures and the revenues derived from four main service groupings:
• Localisation Services – Localisation services relate to translation and cultural adaptation of in-game text and audio scripts across multiple game 
platforms and genres.
• Localisation Testing – Localisation Testing involves testing the linguistic correctness and cultural acceptability of computer games.
• Audio/Voiceover Services – Audio Services relate to the audio production process for computer games and includes script translation, actor selection 
and talent management through pre-production, audio direction, recording, and post-production, including native language Quality Assurance of 
the recordings.
• Functional Testing – Functional Testing relates to quality assurance services provided to game producers to ensure games function as required. 
• Art Creation Services – Art creation services relate to the production of graphical art assets for inclusion in the video game including concept art creation 
along with 2D and 3D art asset production and animation.
• Customer Support – Customer support relates to the live operations support services such as community management, player support and associated 
services provided to producers of games to ensure that consumers have a positive user experience.
There is no allocation of operating expenses, profit measures, assets and liabilities to individual product groupings. Accordingly the disclosures below are 
provided on an entity-wide basis.
Activities are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision maker 
has been identified as the executive management team made up of the Chief Executive Officer and the Finance Director.
Years ended 31 December
Revenue by line of business
2015
€’000
2014
€’000
Localisation 17,141 11,957
Localisation Testing 15,021 14,658
Audio 7,157 5,080
Functional Testing 6,472 4,986
Art Creation 8,211 612
Customer Support 3,949 –
57,951 37,293
One (2014: Two) customers accounted for more than 10% of the Group’s revenue during the year. Revenues generated from the customer were €7 .2m 
(2014: €7 .1m and €3.9m).
Geographical Analysis of Revenues by Jurisdiction
Analysis by geographical regions is made according to the Group’s operational jurisdictions. This does not reflect the region of the Group’s customers, whose 
locations are worldwide.
Years ended 31 December
2015
€’000
2014
€’000
Ireland 14,167 9,939
Japan 3,324 2,644
Italy 8,343 6,754
Canada 17,438 11,067
United States 6,573 5,838
India 3,602 612
Singapore 3,083 65
United Kingdom 650 374
Brazil 465 –
Spain 306 –
Total revenues 57,951 37,293 48 KEYWORDS STUDIOS PLC
4 Segmental analysis continued
Geographical Analysis of Non-current assets from Continuing Businesses
 Years ended 31 December 
2015
 €’000 
2014
 €’000 
Ireland 284  391 
Japan 32  26 
Italy 8,984  9,498 
Canada 1,981  1,057 
United States 8,706  249 
India 3,039  2,720 
Singapore 83  97 
United Kingdom 6,885  6,400 
Brazil 204 –
Spain 868 –
Mexico 95 –
31,161 20,439
5 Operating profit
Years ended 31 December
Operating profit is stated after charging:
2015
€’000
2014
€’000
Depreciation 1,297 868
Amortisation of Intangible Assets 857 468
Costs of Acquisitions 221 483
Costs of Integration 868 978
Operating lease repayments 1,663 1,018
One-time costs of €221k and €868k respectively were incurred in acquiring and integrating the new entities into the group. The most significant costs within 
the integration costs are for internal and external resource who have led the activities to integrate the new acquisitions into the Group.
Years ended 31 December
2015
€’000
2014
€’000
Auditors’ remuneration
Audit services
Parent company and Group audit 48 33
Subsidiary companies audit 95 67
Non-audit services
Accounting services – 3
Taxation compliance 12 18
Due diligence services – 25
155 147
6 Financing income and costs
Years ended 31 December
2015
€’000
2014
€’000
Finance income
Interest received 70 49
Foreign Exchange Gain – 467
70 516
Finance cost
Bank charges (206) (94)
Interest Expense (128) (61)
Foreign Exchange Losses (474) –
(808) (155)
Net financing (expense)/income (738) 361
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 49 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
7 Taxation
Years ended 31 December
2015
€’000
2014
€’000
Current income tax
Income tax on profits 4 9
Income tax on profits of subsidiary operations 1,518 955
Deferred tax (Note 29) 310 251
1,832 1,215
The tax charge for the year can be reconciled to accounting profit as follows:
Years ended 31 December
2015
€’000
2014
€’000
Profit before tax 5,086 3,436
Expected tax charge based on the standard rate of taxation in the UK at 23% (2014: 23%) 1,170 790
Higher rates of current income tax in overseas jurisdictions 286 236
Lower rates of current income tax in overseas jurisdictions (100) (161)
Losses incurred in overseas jurisdictions 238 32
Effects of other timing differences 238 318
Total tax charge 1,832 1,215
The Group’s subsidiaries are located in different jurisdictions and are taxed on their residual profit in those jurisdictions. The majority of profits arise in Ireland.
8 Profit attributable to shareholders of the parent company
In accordance with Companies Act 2006, the Company is availing of the exemption from presenting its individual Statement of Comprehensive Income to  
the annual general meeting and from filing it with Companies House. The amount of profit/(loss) after tax dealt with in the parent undertaking is (€1,576k) 
(2014: loss (€606k)).
9 Earnings per share
Years ended 31 December
2015
Euro cent
2014
Euro cent
Basic 6.98 4.94
Diluted 6.87 4.93
2015
€’000
2014
€’000
Profit for the period from continuing operations attributable to the equity holders of the company 3,363 2,220
Number Number
Denominator (Weighted average number of equity shares) 
Basic 48,192,371 44,955,503
Diluted 48,971,278 45,064,294
The dilutive impact of share options has been considered in calculating diluted earnings per share. Details of the number of share options outstanding at the 
year-end are set out in note 20. 50 KEYWORDS STUDIOS PLC
10  Dividends
2015 2014
Per share
Euro cent
Total
€’000
Per share
Euro cent
Total
€’000
Final 1.03 482 0.84 394
Interim 0.54 255 0.46 215
Dividends paid to shareholders 1.57 737 1.30 609
In June 2014, Keywords Studios plc approved a dividend of Stg 0.67/€0.84 per share, based on the shares in issue at that time, or €393,767 in total, as a final 
dividend for 2013. The dividend was paid in July 2014.
In September 2014, Keywords Studios plc approved a dividend of Stg 0.36/€0.46 per share, based on the shares in issue at that time, or €215,391 in total,  
as an interim dividend for 2014. The dividend was paid in October 2014.
In June 2015, Keywords Studios plc approved a dividend of Stg 0.74/€1.03 per share, based on the shares in issue at that time, or €482,333 in total, as a final 
dividend for 2014. The dividend was paid in June 2015. 
In September 2015, Keywords Studios plc approved a dividend of Stg 0.40/€0.54 per share, based on the shares in issue at that time, or €254,934 in total,  
as an interim dividend for 2015. The dividend was paid in October 2015. 
The Directors’ recommend a final dividend in respect of the financial year ended 31 December 2015 of Stg 0.81p per Ordinary share, to be paid on 23 June 
2016 to shareholders who are on the register at 3 June 2016. This dividend is not reflected in these financial statements as it does not represent a liability  
at 31 December 2015. The final proposed dividend will reduce shareholders’ funds by an estimated €594,122.
There are no income tax consequences for the company in respect of the dividends proposed prior to issuance of the Consolidated Financial Statements and 
for which a liability has not been recognised.
11  Staff costs
Total staff costs (including Directors) comprise the following:
Years ended 31 December
2015
€’000
2014
€’000
Salaries and related costs 29,773 19,907
Share based payment costs 392 156
30,165 20,063
Key management compensation:
Years ended 31 December
 2015
€’000
 2014
€’000
Salaries and related costs 719 595
Social Welfare cost 88 60
Pension costs 5 5
Share based payment costs 135 66
947 725
The key management compensation includes the five Directors of Keywords Studios plc (2014: five).
Years ended 31 December
2015 2014
Average number of employees
Operations 1,169 918
General and administration 104 60
1,273 978
The breakdown of the Directors remuneration for the Company is included in the Directors’ Remuneration Report on page 31.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 51 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
12  Goodwill
Group 
Liquid
Violet 
Limited
€’000
Babel
Media 
Limited
€’000
Binari
Sonari
Srl
€’000
Lakshya 
Digital 
Private 
Limited
€’000
Alchemic 
Dream
€’000
Reverb
€’000
Kite
Team
€’000
Liquid 
Development
€’000
Total
€’000
Cost and net book value
At 31 December 2013
Recognised on acquisition of  
a subsidiary 1,043 4,375 7,630 1,663 – – – – 14,711
At 31 December 2014 1,043 4,375 7,630 1,663 – – – – 14,711
Recognised on acquisition of  
a subsidiary – – – 39  690  274  550  6,801 8,354
Foreign exchange adjustment 137  505  –  127  (55) (71) –  185 828
At 31 December 2015 1,180 4,880 7,630 1,829 635 203 550 6,986 23,893
During the period goodwill arose on the acquisition of Alchemic Dream, Reverb Localização – Preparação de Documentos Ltda (“Reverb”), Kite Team and Liquid 
Development. Additional goodwill arose on Lakshya Digital Private Limited due to an adjustment to the valuation of fixed assets acquired (See note 32).
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other 
non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be 
recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset  
is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which 
it belongs for which there are separately identifiable cash flows; its cash generating units (‘CGUs’). Goodwill is allocated on initial recognition to each of the 
Group’s CGUs that are expected to benefit from a business combination that gives rise to the goodwill. The Group analyses its Cash Generating Units on an 
entity by entity basis. The discount rate used within the calculations was 12.5% for each CGU. The growth rates are based on a review of recently achieved 
growth and a prudent estimate for likely growth rates for each CGU. 
Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income. An impairment 
loss recognised for goodwill is not reversed.
Key assumptions for the value in use calculations are as follows:
Long term 
growth rate
Discount  
rates
Liquid Violet Limited 10% 12.5%
Babel Media Limited 10% 12.5%
Binari Sonori S.R.L 10% 12.5%
Lakshya Digital Private Limited 10% 12.5%
Alchemic Dream 10% 12.5%
Reverb 10% 12.5%
Kite Team 10% 12.5%
Liquid Development 10% 12.5%
As part of the value in use calculation, management prepared an initial cash flow forecast, approved by the Board of Directors, covering the period to 
31 December and the following five years. The long term growth rate has been used to determine a terminal value for each CGU. 
The Group has conducted a sensitivity analysis on the carrying value on each of the CGUs. If the sales projections reduce by the following percentages,  
the value of goodwill would be impaired.
Liquid Violet Limited 7 .4%
Babel Media Limited 9.2%
Binari Sonori S.R.L 4.8%
Lakshya Digital Private Limited  13.1%
Alchemic Dream 28.8%
Reverb 35.3%
Kite Team 13.6%
Liquid Development 5.9%
The result of the value in use calculations was that no impairment is required in this period.  52 KEYWORDS STUDIOS PLC
13  Intangible assets – customer relationships
Group
Liquid
 Violet
Limited
€’000
Babel
Media
Limited
€’000
Binari
Sonari
Srl
€’000
Lakshya 
Digital
Private 
Limited
€’000
Alchemic 
Dream
€’000
Liquid 
Development
€’000
Total
€’000
Cost
As at 31 December 2013 – – – – – – –
Additions 204  964  1,791  475  –  –  3,434 
At 31 December 2014 204  964  1,791  475  –  –  3,434 
Additions –  –  –  –  286  1,225  1,511 
Foreign Exchange Adjustment 27  111  36  (21) 34  187 
As at 31 December 2015 231  1,075  1,791  511  265  1,259  5,132 
Amortisation and impairment
As at 31 December 2013 –  –  –  –  –  –  – 
Amortisation charge 39  169  239  21  –  –  468 
As at 31 December 2014 39  169  239  21  –  –  468 
Amortisation charge 46  214  358  101  54  84  857 
Foreign exchange adjustment 5  20  –  3  (3) (0) 25 
As at 31 December 2015 90  403  597  125  51  84  1,350 
Net book value
As at 31 December 2014 165  796  1,552  454  –  –  2,967 
As at 31 December 2015 141  672  1,194  386  214  1,175  3,782 
Customer relationships are amortised over 5 years from the point of acquisition on a straight line basis.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 53 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
14  Property, plant and equipment
Group
Computers
and
software
€’000
Office,
furniture and 
equipment
€’000
Leasehold 
improvements
€’000
Total
€’000
Cost
At 1 January 2014 1,192 214  32  1,438 
Currency revaluation 179  93 36  308
Additions 410 456  386  1,252 
Acquisitions through business combinations 3,508  1,964  381  5,853 
Disposals (342) (999) (48) (1,389)
At 31 December 2014 4,947  1,728  787  7,462 
Currency revaluation 88  (15) (16) 57 
Additions 1,191  373  71  1,635 
Acquisitions through business combinations 266  204  16  486 
Disposals (59) (14) (3) (76)
At 31 December 2015 6,433  2,276  855  9,564 
Accumulated depreciation
Cost
At 1 January 2014 740 87 11 838
Currency revaluation 83 60 4 147
Acquisitions through business combinations 2,686 1,411 74 4,171
Depreciation charge 545 296 27 868
Disposals (289) (986) (48) (1,323)
At 31 December 2014 3,765 868 68 4,701
Currency revaluation 102 (76) (28) (2)
Acquisitions through business combinations 180 (43) – 137
Depreciation charge 857 344 96 1,297
Disposals (55) – – (55)
At 31 December 2015 4,849 1,093 136 6,078
Net book value
As at 31 December 2014 1,182 860 719 2,761
As at 31 December 2015 1,584 1,183 719 3,486
15  Trade receivables
Group
As of 31 December
2015
€’000
2014
€’000
Customers 7,825 6,464
Provision for bad debts (note 26) (306) (261)
7,519 6,203 54 KEYWORDS STUDIOS PLC
16  Other receivables
Group
As of 31 December
2015
€’000
2014
€’000
Accrued Income 1,661 954
Prepayments 989 484
Other receivables 4,931 3,650
Other tax and social security 394 235
Restricted cash (note 25) 345 321
8,320 5,644
Company
As of 31 December
2015  
€’000
2014  
€’000
Intercompany receivables (note 25) 17,299 15,390
Other tax and social security 35 16
Prepayments 58 72
Other receivables 356 –
Restricted cash (note 25) 345 321
18,093 15,798
Non-current
Intercompany receivables (note 25) 3,300 3,000
3,300 3,000
17  Cash and cash equivalents
Group
As of 31 December
2015
€’000
2014
€’000
Cash at bank 19,018 9,635
Short term bank deposits – 1,379
19,018 11,014
Company
Cash at bank 11,656 378
Short term bank deposits – 323
11,656 701
Short term bank deposits relate to cash on deposit with maturity dates less than three months, or which can be accessed before on demand.
18  Short term investments
Group
As of 31 December
2015
€’000
2014
€’000
Medium term bank deposits 27 259
27 259
Medium term bank deposits relate to cash on deposit with maturity dates greater than three months, which cannot be accessed before maturity.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 55 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
19  Shareholder’s equity
Share Capital
Shares €’000
As at 1 January 2014 40,032,413 465
Ordinary Shares of £0.01 issued on acquisition of Babel Media Limited 1,516,944 19
Ordinary Shares of £0.01 issued on acquisition of Binari Sonori S.R.L 1,555,650 19
Placing of ordinary shares of £0.01 on the market 4,000,000 49
As at 31 December 2014 47,105,007 551
Ordinary Shares of £0.01 issued for earn out of Binari Sonori S.R.L 158,250 2
Ordinary Shares of £0.01 issued on acquisition of Liquid Development LLC. 1,074,440 15
Placing of ordinary Shares of £0.01 on the market 5,500,000 78
As at 31 December 2015 53,837,697 646
On 9 January 2015 the Group issued 158,250 of 1p shares at a value of 145.47p (€1.86) for the earn out agreement with Binari Sonori.
On 20 August 2015 the Group issued 1,074,440 of 1p shares at a value of 160.32p (€2.25) which formed the part of the consideration for the acquisition  
of Liquid Development LLC.
On 26 November 2015, the group issued 5,500,000 1p shares at a value of £1.90 (€2.64) to purchase preference shares in Project Midas Limited. This 
transaction formed part of a placing of Keywords Studios shares for cash. The cash proceeds with respect to the share placement were received on the 
redemption of the preference shares held on 26 November 2015. The net proceeds raised were €14.2m net of costs of €656,000. No share premium is 
recorded in the Group’s financial statements through the operation of the merger relief provisions of the Companies Act 1982 hence the premium is recorded 
in the merger reserve. 
There is no limit to the number of shares which the company can issue.
Shares held by the Employee Benefit Trust (EBT)
2015 2014
Number
Total
€’000 Number
Total
€’000
Ordinary shares held by the EBT 400,000 804 – –
In January the Group purchased 200,000 1p Ordinary Shares at a value of 145p and in April a further 200,000 1p shares at a value of 150p.
Reserves
The following describes the nature and purpose of each reserve within owner’s equity:
Reserve Description and purpose
Retained earnings Cumulative net gains and losses recognised in the consolidated statement of comprehensive income.
Foreign exchange reserve Gains or losses arising on retranslation of the net assets of the overseas operations into euro.
Share premium The Share Premium account is the amount received for shares issued in excess of their nominal value, net of share 
issuance costs.
Share option reserve The Share option reserve is the credit arising on share based payment charges in relation to the Company’s share 
option schemes.
Merger reserve – restructuring The merger reserve was initially created following the Group reconstruction, when Keywords Studios plc acquired 
the Keywords International Limited Group of companies. 
Merger reserve – acquisitions When the Group uses Keywords Studios plc shares as consideration for the acquisition of an entity, the value of 
the shares in excess of the nominal value, net of share issuance costs are recorded within this reserve.
Non-controlling interest reserve The non-controlling interest reserve represents the share of net assets/(liabilities) at the reporting date which is 
attributable to the holders of the non-controlling interest. 56 KEYWORDS STUDIOS PLC
20  Share options
In July 2013, at the time of the IPO, the Company put in place a Share Option Scheme and a Long Term Incentive Plan (“LTIP”). The charge in relation to these 
arrangements is shown below, with further details of the schemes following:
2015
€’000
2014
€’000
Share Option Scheme Expense 157 66
Share Option Scheme – LTIP Expense 235 90
392 156
Of the total share option charge, €55k relates to Directors of the Company as at 31 December 2015. (2014: €66k).
Share Option Scheme
Share options are granted to Directors and to permanent employees. The exercise price of the granted options is equal to management’s the market price  
of the shares at the time of the award of the options. The Company has no legal or constructive obligation to repurchase or settle the options in cash.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
2015 2014
Average
exercise
price in
£ per share
Number
of options
Average
exercise
price in
£ per share
Number
of options
Outstanding at the beginning of the year 1.20 642,286 1.20 762,775
Granted 1.58 1,059,040 – –
Lapsed 1.20 (32,553) 1.20 (120,489)
Exercised 1.20 (26,531) – –
Outstanding at the end of the year 1.20 1,642,242 1.20 642,286
Exercisable at the end of the year 1.20 178,133 – –
There were 1,059,040 options granted on 1 June 2015 at an exercise price of £1.58. All options were granted to employees of the Group of which 4,260 of 
these options lapsed due to staff leaving in the period. Of the total options of 1,054,780 remaining at 31 December 2015, 351,594 are exercisable from 
1 June 2018 to 31 May 2023, 351,593 are exercisable from 1 June 2019 to 31 May 2023 and 351,593 are exercisable from 1 June 2020 to 31 May 2023. 
The opening balance of 642,286 options were granted on 12 July 2013 at an average exercise price of £1.20. During the year 28,293 of the options lapsed 
due to staff leaving and 26,531 options were exercised. All options were granted to either employees or Directors of the Group. Of the total options granted 
remaining at 31 December 2015, 178,133 are exercisable as at 31 December 2015 to 11 July 2020, 204,664 are exercisable from 12 July 2016 to  
11 July 2020 and 204,664 are exercisable from 12 July 2017 to 11 July 2020.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 57 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
The inputs into the Black-Scholes model, used to value the options are as follows:
Share Options granted in 2013
2015 2014
Weighted average share price (£) 1.23 1.23
Weighted average exercise price (£) 1.20 1.20
Average Expected Life 3 years 3 years
Expected Volatility 36.12% 36.12%
Risk free rates 0.5% 0.5%
Average expected dividends yield 1.00% 1.00%
Share Options granted in 2015
2015 2014
Weighted average share price (£) 1.64 –
Weighted average exercise price (£) 1.58 –
Average Expected Life 3 years –
Expected Volatility 28.03% –
Risk free rates 0.9% –
Average expected dividends yield 0.75% –
Expected volatility was determined by calculating the historical volatility of two similar listed companies over the previous 3 years. The expected life 
used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, exercise restrictions and 
behavioural considerations.
The weighted average remaining contractual life of the options outstanding at 31 December 2014 granted in 2013 was 6 months (2014: 1 years 6 months) 
and granted in 2015 was 2 years and 7 months. All of the outstanding options granted in 2013 can be exercised at an average of £1.20 over a 1 to 3 year 
period and for those granted in 2015 can be exercised at £1.58 over a 3 to 5 year period.
Long Term Incentive Plan Scheme
An alternative share plan was introduced to give awards to Directors and staff subject to outperforming the Numis Small Cap (excluding Investment Trusts) 
index in terms of shareholder return over a three year period. A total of 860,206 (2014: 376,226) nil price (1p) options are available to vest to Directors and  
to selected employees on the basis of the number of options they are entitled to.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
2015 2014
Average
exercise
price in
£ per share
Number
of options
Average
exercise
price in
£ per share
Number
of options
Outstanding at the beginning of the year 0.01 376,226 – 392,037
Granted 0.01 489,540 0.01 50,000
Lapsed 0.01 (5,560) – (65,811)
Exercised – – – –
Outstanding at the end of the year 0.01 860,206 0.01 376,226
Exercisable at the end of the year – – – –
On 6 January, 101,060 options were granted at an exercise price of £0.01 to employees of the Group. The options are exercisable from 6 January 2018 to 
6 January 2022 if the market performance conditions are met as at 6 January 2018. On 1 June 2015 388,480 options were granted at an exercise price of 
£0.01 to Directors and employees of the Group. The options are exercisable from 1 June 2018 to 1 June 2022 if the market performance conditions are met  
as at 1 June 2018. Of the options granted on 1 June, 5,560 have lapsed.
326,226 options granted previously on 12 July 2013 at an exercise price of £0.01 remain as at 31 December 2015. All options were granted to either 
employees or Directors of the Group. The 326,226 options granted are exercisable from 12 July 2016 to 11 July 2020 if the market performance conditions 
are met as at 12 July 2016.
Additionally 50,000 options granted at an exercise price of £0.01 to a director of the Group on 3 July 2014 remain as at 31 December 2015. The options are 
exercisable from 3 July 2017 to 3 July 2021 if the market performance conditions are met as at 3 July 2017 . Additionally 65,811 options lapsed due to a 
director leaving the Group. 58 KEYWORDS STUDIOS PLC
20  Share options continued
The options were valued using a Monte Carlo binomial model using the following inputs:
LTIPS granted in 2013
2015 2014
Weighted average share price (£) 1.23 1.23
Weighted average exercise price (£) 0.01 0.01
Average expected life 3 years 3 years
Expected volatility 36.12% 36.12%
Risk free rates 0.5% 0.5%
LTIPS granted in 2014
2015 2014
Weighted average share price (£) 1.60 1.60
Weighted average exercise price (£) 0.01 0.01
Average expected life 3 years 3 years
Expected volatility 35.52% 35.52%
Risk free rates 0.5% 0.5%
LTIPS granted in January 2015
2015 2014
Weighted average share price (£) 1.43 –
Weighted average exercise price (£) 0.01 –
Average expected life 3 years –
Expected volatility 31.2% –
Risk free rates 0.58% –
LTIPS granted in June 2015
2015 2014
Weighted average share price (£) 1.64 –
Weighted average exercise price (£) 0.01 –
Average expected life 3 years –
Expected volatility 28.03% –
Risk free rates 0.9% –
Expected volatility was determined by calculating the historical volatility of two similar listed companies over the previous three years. The expected life 
used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, exercise restrictions and 
behavioural considerations.
As any dividends earned are to be re-invested into the business the impact of dividends has been ignored in the calculation of the LTIP share option charge.
The weighted average remaining contractual life of the options outstanding at 31 December 2015 was 1 years 8 months (2014: 1 years 8 months). All of the 
outstanding options can be exercised at £0.01 over a 4 year period.
21  Trade payables
Group
As of 31 December
2015
€’000
2014
€’000
Suppliers 2,761 2,322
2,761 2,322
Company
Suppliers 132 74
132 74
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 59 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
22  Other payables
Group
As of 31 December
2015
€’000
2014
€’000
Current
Accrued expenses 3,268 3,014
Payroll Taxes 482 875
Other payables 2,714 1,898 
Contingent consideration 1,979 1,088
Related party payable (Note 25) 9 5
8,452 6,881
Non-current
Other payables 55 468
Contingent consideration 245 750
300 1,219
Company
Current
Accrued expenses 368 256
Payroll Taxes 38 41
Other payables 340 48
Contingent consideration 735 788
1,481 1,132
Non-current
Other payables – 321
Contingent consideration – 750
– 1,071
23  Loans and borrowings
As of 31 December
2015
€’000
2014
€’000
Current instalment due on bank loans 1,163 –
1,163 –
In the period Babel Media Canada entered into a loan for €1.1m to finance the tax credits for 2013/2014 which remain outstanding. The loan bears interest  
of the base rate for Canada +1% margin and will be repaid in 2016. There is a charge over the assets of Babel Canada relating to the loan.
Additionally the group took on the following liabilities which existed when the group purchased 50% of Kite Team.
Loan for €150,000 at a fixed rate of 6.30% payable by 1 January 2021 and a loan for €200,000 at a fixed rate of 5.38% payable by 20 December 2021.  
Both of these loans are guaranteed by a Director of Kite Team.
Additionally the Director of Kite Team has given the company a loan of €295,000 payable by the latest 31 March 2017 . 60 KEYWORDS STUDIOS PLC
23  Loans and borrowings continued
The loans are repayable over the following periods.
As of 31 December
2015
€’000
2014
€’000
Expiry within 1 year 1,163 –
Expiry within 1 and 2 years 350 –
Expiry in more than 2 years 221 –
1,734 –
The currencies of the loans are as follows:
As of 31 December
2015
€’000
2014
€’000
Euro 621 –
Canadian Dollars 1,113 –
1,734 –
24  Investments in subsidiaries
Company
As of 31 December
2015
€’000
2014
€’000
Investment in Subsidiaries 12,765 12,765
12,765 12,765
Details of the Company and Group’s subsidiaries as at 31 December 2015 are set out below:
Name
Country of
incorporation
Date of
incorporation/
acquisition
Proportion of voting
rights and ordinary
share capital held Nature of business
Keywords International Limited Ireland 13-05-1998 100% Trading Company
Keywords International Co. Limited Japan 30-11-2010 100% Trading Company
Keywords International Corporation Inc. Canada 22-12-2010 100% Trading Company
Keywords Italia S.R.L Italy 18-05-2011 100% Trading Company
Keywords International Inc. United States 26-09-2012 100% Trading Company
KW Studios Limited United Kingdom 29-05-2013 100% Dormant Company
Keywords International Pte. Limited Singapore 24-04-2014 100% Trading Company
Binari Sonori S.R.L Italy 08-05-2014 100% Trading Company
Binari Sonori Inc. United States 08-05-2014 100% Trading Company
Liquid Violet Limited United Kingdom 15-01-2014 100% Trading Company
Babel Media Limited United Kingdom 17-02-2014 100% Trading Company
Babel Games Services Inc. Canada 17-02-2014 100% Trading Company
Babel Media India Private Limited India 17-02-2014 100% Trading Company
Babel Media USA Inc. United States 17-02-2014 100% Trading Company
Lakshya Digital Private Limited India 10-10-2014 100% Trading Company
Lakshya Digital Singapore Pte. Ltd. Singapore 10-10-2014 100% Trading Company
Edugames Solution Private Limited India 10-10-2014 100% Trading Company
Keywords International Barcelona SL Spain 09-01-2015 100% Trading Company
Keywords (Shanghai) Information Technology Limited China 02-04-2015 100% Trading Company
Alchemic Dream Inc. Canada 06-01-2015 100% Trading Company
Reverb Localização – Preparação de Documentos Ltda Brazil 18-01-2015 100% Trading Company
Kite Team SL Spain 16-07-2015 50% Trading Company
Kite Team Mex S. de R.L. de C.V Mexico 16-07-2015 50% Trading Company
Liquid Development LLC United States 20-08-2015 100% Trading Company
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 61 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
25  Related parties and shareholders
Italicatessen Limited, a company registered in Ireland is related by virtue of a common significant shareholder. P.E.Q. Holdings Limited is 100% owner of 
Italicatessen Limited. At 31 December 2015, P.E.Q Holdings Limited owned 22.2% (2014: 24.5%) of the Company. In addition, Mr. Giorgio Guastalla is a  
Director of Italicatessen Limited, P.E.Q. Holdings Limited and the Company, and owns, or controls, 90% of the share capital of P.E.Q Holdings Limited.
The following transactions arose with Italicatessen Limited, which provides canteen services to Keywords International Limited:
As of 31 December
2015
€’000
2014
€’000
Operating expenses
Canteen Charges 24 42
The following are year-end balances:
As of 31 December
2015
€’000
2014
€’000
Italicatessen Limited 9 5
Total related party creditors 9 5
The company paid the following amounts to Mr. Giorgio Guastalla, Director of the Company, and shareholder of P.E.Q Holdings Limited, in respect of rent on 
premises occupied by the employees of the Group in Dublin.
2015
€’000
2014
€’000
Operating expenses
Rental payment 22 22
The Company entered into a deed of undertaking and indemnity on 8 July 2013 with Mr. Andrew Day, CEO and Director of the Company related to possible 
liabilities which might arise due to the restructuring of the Group prior to its IPO on 12 July 2013. As part of this deed of undertaking and indemnity, Mr. Day 
deposited £250,000 as security for the Company. This is included as Restricted Cash in Other Receivables of the Company. This amount has been repaid to 
Mr. Day in 2016. There is a corresponding liability included in Other Payables.
The details of key management compensation (being the remuneration of the Directors) are set out in note 11.
As at 31 December 2015 and 2014, the Company had amounts receivable from its subsidiaries, amounting to €20,598,567 (2014: €18,389,791) relating to 
intergroup trading activities.
26  Financial instruments and risk management
Interest Rate Risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Group’s income and operating 
cash flows are substantially independent of changes in market interest changes. The management monitors interest rate fluctuations on a continuous basis 
and acts accordingly. 
Where the Group has a significant amount of surplus cash, it will invest in higher earning interest deposit accounts. 
Due to interest rate conditions, the interest rates for short term deposits are at similar levels to those achieved for longer terms. The Group is not unduly 
exposed to market interest rate fluctuations, and no interest rate sensitivity analysis has been presented as a result.
Credit Risk
Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand 
at the reporting date.
The Group closely monitors the activities of its counterparties and maintains regular contact which enables it to ensure the prompt collection of 
customers’ balances.
The Group’s main financial assets are cash and cash equivalents as well as trade and other receivables and represent the Group’s maximum exposure to credit 
risk in connection with its financial assets. Trade and other receivables are carried on the statement of financial position net of bad debt provisions estimated 
by the Directors based on prior year experience and an evaluation of prevailing economic circumstances.
Whenever possible and commercially practical the Group invests cash with major financial institutions in each jurisdiction where it operates. The Group 
periodically monitors the credit rating and stability of these institutions. 62 KEYWORDS STUDIOS PLC
26  Financial instruments and risk management continued
The ageing of trade and receivables that are past due but not impaired can be analysed as follows:
Group
Total
€’000
Not past
due
€’000
1-2 months
overdue
€’000
More than
2 months
past due
€’000
As at 31 December 2015 7,519 5,313 2,049 157
As at 31 December 2014 6,203 3,790 1,311 1,102
The above balances relate to customers with no default history.
A provision for doubtful debtors is included within trade receivables that can be reconciled as follows:
2015
€’000
2014
€’000
Provision at the beginning of the year 260 81
Charged to income statement 46 199
Utilised – (20) 
Provision at end of the year 306 260
Related party receivables of €nil were not past due at 31 December 2015 (2014: nil).
Company
Intercompany receivables of €20,598,567 were not past due at December 31, 2015 (2014: €18,389,791).
Currency Risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. 
The foreign exchange risk arises for the Group where assets and liabilities arise and are held in overseas subsidiaries in a currency other than the euro and to  
a lesser extent where individual Group entities enter into transactions denominated in currency other that their functional currency. 
The Group’s policy, where possible, is for Group entities to manage foreign exchange risk at a local level by matching the currency in which revenue is 
generated and the expenses incurred and by settling liabilities denominated in their functional currency with cash generated from their own operations in 
that currency. Where Group entities have liabilities denominated in a currency other than their functional currency (and have insufficient reserves of that 
currency to settle them), cash already denominated in that currency will, where possible, be transferred from elsewhere within the Group. 
Over the course of the year the Group’s currency has increased and diversified due to the addition of the newly acquired subsidiaries. The Group is predominantly 
exposed to currency risk on the balances held within working capital within the Group and the exposure is concentrated in the movement of the Canadian 
Dollar, US dollar and Sterling against the Euro. The effect of a strengthening and weakening of 10% of these currencies against the euro at the reporting date 
on the working capital balances held at this date would, all other variable held constant, have resulted in the following pre-tax profit/(loss) impact for the year 
as follows:
10% strengthening
€’000
10% weakening 
€’000
Canadian Dollar to Euro 347 (315)
United States Dollar to Euro 492 (445)
Sterling to Euro (1,139) 1,253
Total financial assets and liabilities
The carrying amount of the financial assets and liabilities shown in the Group and Company statements of financial position are stated at fair value.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 63 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Liquidity Risk
Liquidity risk arises from the Group’s management of working capital and the financial charges on its debt instruments.
The Group’s policy is to ensure that it will have sufficient cash to allow it to meet its liabilities when they become due. 
The following are the contractual maturities (representing undiscounted contractual cash flows) of the Group’s and Company’s financial liabilities:
Group
Year ended 31 December 2015
Total
€’000
Within 1 year
€’000
1-2 years
€’000
2-5 years
€’000
Trade payables 2,761 2,761 – –
Other accounts payable 8,752 8,452 300 –
Year ended 31 December 2014
Total
€’000
Within 1 year
€’000
1-2 years
€’000
2-5 years
€’000
Trade payables 2,322 2,322 – – 
Other accounts payable 8,099 6,881 1,218 – 
Company
Year ended 31 December 2015
Total
€’000
Within 1 year
€’000
1-2 years
€’000
2-5 years
€’000
Trade payables 132 132 – – 
Other accounts payable 1,481 1,481 – – 
Year ended 31 December 2014
Total
€’000
Within 1 year
€’000
1-2 years
€’000
2-5 years
€’000
Trade payables 74 74 – – 
Other accounts payable 2,204 1,133 1,071 – 
27  Operating lease commitments
The Group maintains a portfolio of leased properties. The terms of property leases vary from country to country, although they all tend to be tenant repairing 
with rent reviews every 2 to 5 years and some have break clauses. 
The total future value of the minimum lease payments is due as follows:
Group
2015
€’000
2014
€’000
Not later than one year 1,563 1,231
Later than one year and not later than five years 4,224 4,121
Later than five years 476 1,879
6,263 7,231 64 KEYWORDS STUDIOS PLC
28  Finance lease commitments
The Group has leased computer equipment (net carrying value €129k) and office telephone systems (net carrying value €43k). Such assets are generally 
classified as finance leases as the rental period amounts to the estimated useful economic life of the assets concerned and often the Group has the right  
to purchase the assets outright at the end of the minimum lease term by paying a nominal amount.
The total future value of the minimum lease payments is due as follows:
Group
2015
Minimum
lease
payments
€’000
Interest
€’000
Present
value
€’000
Not later than one year 120 8 112
Later than one year and not later than five years 61 3 58
Later than five years – – –
181 11 170
2014
Minimum
lease
payments
€’000
Interest
€’000
Present
value
€’000
Not later than one year 128 10 118
Later than one year and not later than five years 153 9 144
Later than five years – – –
281 19 262
29  Deferred tax
Details of the deferred tax assets and liabilities, and amounts recognised in the profit or loss are as follows:
Asset 
2015
€’000
Liability
2015
€’000
Net 
2015
€’000
(Charged)/
credited
to profit
or loss 
2015
€’000
Accelerated capital allowances 63 4 59 41
Personal severance indemnity 26 – 26 –
Available losses 397 – 397 86
Rent – free inducement 27 – 27 (2)
Fixed asset excess of tax over accounting 156 45 111 25
Deferred tax related to Multi Media Tax Credits – 1,067 (1,067) (377)
Other temporary and deductible differences 302 58 244 (438)
Deferred tax arising on intangibles – 1,249 (1,249) 355
Net tax assets/(liabilities) 971 2,423 (1,452) (310)
All deferred tax assets have been classified in non-current assets in 2015.
30  Non-controlling interest
 Years ended 31 December 
2015
 €’000 
2014
 €’000 
Opening balance – –
Liabilities of Kite Team attributable to shareholders at the acquisition date (50) –
Loss of Kite Team for the period attributable to the shareholders of the group (109) –
Contingent consideration for the purchase of the remaining 50% if Kite Team (1,150) –
Closing balance (1,309) –
Keywords International Limited has acquired 50% of the issued share capital of Kite Team, a company registered in Spain and is set out in note 31.
During the period since acquisition the group has recognised its 50% share of the loss incurred in the company.
At the time of acquisition a put and call option was put in place which obligated the Group to purchase the remaining 50% of Kite Team. The Group estimates 
that the fair value of consideration required to purchase the remaining 50% is €1,150,000. In accordance with IAS 32 the company has recognised a financial 
liability as at 31 December in relation to the put and call option. The corresponding movement has been recorded in equity.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 65 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
31  Acquisitions completed in the current year
Acquisition of Alchemic Dream Inc.
On 6 January 2015 the Group acquired the entire issued share capital of Alchemic Dream Inc, a company registered in Canada, which specialises in providing 
live operations support to on-line games for a number of game publishers. The acquisition is in line with the Group’s strategy to diversify into the provision of 
complementary services to the video game market and strengthens the Group’s service of games already in production. Additionally the acquisition leverages 
the Group’s existing expertise, locations, scale and global reach to extend the services provided by Alchemic Dream as well as generating synergies.
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below:
Book
value
 €’000 
Fair value 
adjustment
 €’000 
Fair
value
 €’000 
Financial assets
Property, plant and equipment 38  (21) 17 
Identifiable intangible assets – customer relationships –  286  286 
Trade and other receivable 802  (111) 691 
Cash and cash equivalents 38  –  38 
Trade and other Payables (803) –  (803)
Deferred tax liabilities –  (36) (36)
Total identifiable assets 75  118  193 
Goodwill 690 
Total consideration 883 
Satisfied by:
Cash 883 
 
Net cash outflow arising on acquisition
Cash 883
Less: cash and cash equivalent balances transferred (38)
 845 
The intangibles assets are to be amortised over their estimated useful lives of 5 years. 
The main factors leading to recognition of goodwill on the acquisition of Alchemic Dream are the presence of certain intangible assets in the acquired entity 
which do not value for separate recognition such as the expertise in customer service, reputation within the industry, and, an unidentified proportion 
representing the balance contributing to profit generation.
Alchemic Dream contributed €4,100,036 revenue and €348,608 profit before tax to the Group between the date of acquisition and the balance sheet date.  
If the acquisition had been completed on the first day of the financial year, revenue of €4,161,397 would have been contributed to the Group and €359,996 
profit before tax before taking into account fair value adjustments of €154,193.
Acquisition costs of €67 ,146 have been charged through the Comprehensive Income Statement.  66 KEYWORDS STUDIOS PLC
31  Acquisitions completed in the current year continued
Acquisition of Reverb Localização – Preparação de Documentos Ltda 
On 18 January 2015 the Group acquired 100% of the issued share capital of Reverb Localização – Preparação de Documentos Ltda (“Reverb”), a company 
registered in Brazil. Reverb provides localisation and audio management services for Brazilian Portuguese for some of the leading games publishers. Reverb 
Studios was acquired to widen the scope of the Group’s services business and to extend the Group’s client base. 
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below:
Book
value
 €’000 
Fair value 
adjustment
 €’000 
Fair
value
 €’000 
Financial assets
Trade and other receivable 14 – 14 
Cash and cash equivalents 12 – 12 
Total identifiable assets 26 – 26 
Goodwill 274 
Total consideration 300 
Satisfied by:
Cash 200 
Deferred consideration 100 
Total consideration transferred 300 
Net cash outflow arising on acquisition
Cash consideration 200 
Less: cash and cash equivalent balances transferred (12)
 188 
The main factors leading to recognition of goodwill on the acquisition of Reverb are the presence of certain intangible assets in the acquired entity which do 
not value for separate recognition such as the expertise in sound recording and localisation, reputation within the industry, and, an unidentified proportion 
representing the balance contributing to profit generation.
Reverb contributed €544,043 revenue (including €79,097 of intercompany sales subsequently billed onwards) and €238,539 profit before tax to the Group 
between the date of acquisition and the balance sheet date. If the acquisition had been completed on the first day of the financial year, revenue of €572,234 
would have been contributed to the Group and €243,770 profit before tax.
Acquisition costs of €1,224 have been charged through the Comprehensive Income Statement. 
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 67 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Acquisition of Kite Team
On 16 July 2015 the Group acquired 50% of the issued share capital of Kite Team, a company registered in Spain. Kite provides localisation and audio 
management services for some of the leading games publishers. The acquisition is in line with the Group’s strategy to diversify into the provision of 
complementary services to the video game market and strengthens the Group’s service of games already in production. 
The Directors of the Group have reviewed IFRS 10 (Consolidated Financial Statements) and are satisfied that the Group has effective control of Kite Team  
and accordingly at the date of acquisition it is treated as a subsidiary within the consolidation.
At the date of acquisition the Group set up a put and call option to acquire the remaining 50% of the share capital of Kite Team by the end of 2017 . The option 
price is dependent upon a number of criteria set out in the Share Purchase Agreement. As a consequence of the put option a financial liability has been 
recognised as at 31 December 2015 which is based on the Groups estimate of the value which would be payable to acquire the remaining 50% of the share 
capital. The fair value of this financial liability is €1,150,000 which has been recorded in other payables in accordance with IAS 32. 
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below:
Book
value
 €’000 
Fair value 
adjustment
 €’000 
Fair
value
 €’000 
Financial assets
Property, plant and equipment 322 – 322 
Trade and other receivable 377 – 377 
Cash and cash equivalents 117 – 117 
Trade and other payables (291) – (291)
Long term loan (625) – (625)
Total identifiable liabilities (100) – (100)
Less non-controlling interest 50 – 50 
KWS share of total identifiable liabilities (50) – (50)
Goodwill 550 
Total consideration 500 
Satisfied by:
Cash 500 
 
Net cash outflow arising on acquisition
Cash consideration 500 
Less: cash and cash equivalent balances transferred (117)
 383 
The main factors leading to recognition of goodwill on the acquisition of Kite are the presence of certain intangible assets in the acquired entity which do not 
value for separate recognition such as the expertise in sound recording and localisation, reputation within the industry, and, an unidentified proportion 
representing the balance contributing to profit generation.
Kite contributed €610,307 revenue (including €304,681 of intercompany sales subsequently billed onwards) and €217 ,721 of a loss before non – controlling 
interest to the Group between the date of acquisition and the balance sheet date. If the acquisition had been completed on the first day of the financial year, 
revenue of €1,149,460 would have been contributed to the Group and €301,124 of a loss before non-controlling interest. 
Acquisition costs of €70,174 have been charged through the Comprehensive Income Statement.  68 KEYWORDS STUDIOS PLC
31  Acquisitions completed in the current year continued
Acquisition of Liquid Development LLC
On 20 August 2015 the Group acquired 100% of the assets of Liquid Development through the purchase of the membership interests. The company 
registered in USA specialises in providing art creation services for the video games industry. The acquisition is in line with the Group’s strategy to diversify into 
the provision of complementary services to the video game market and strengthens the Group’s service of games already in production. 
The Directors of the Group have reviewed the requirements of IFRS 3 (Business Combinations) paragraph B5 – B12 and concluded that as Liquid Development 
constitutes an on-going business within the Group that it should be accounted for as a business combination. 
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below:
Book
value
 €’000 
Fair value 
adjustment
 €’000 
Fair
value
 €’000 
Financial assets
Property, plant and equipment –  108  108 
Identifiable intangible assets – customer relationships –  1,225  1,225 
Trade and other receivable 340  –  340 
Cash and cash equivalents 269  –  269 
Trade and other payables (185) –  (185)
Deferred tax liabilities –  (541) (541)
Total identifiable liabilities 424  792  1,216 
Goodwill 6,801 
Total consideration 8,017 
Satisfied by:
Cash 5,365 
Equity instruments (1,074,440 shares of the parent company) 2,413 
Deferred consideration 239 
Total consideration transferred 8,017 
Net cash outflow arising on acquisition
Cash consideration 5,365 
Less: cash and cash equivalent balances transferred (269)
 5,096 
The deferred consideration recorded within other payables represents the fair value amount of the balance due. 
The main factors leading to recognition of goodwill on the acquisition of Liquid Development are the presence of certain intangible assets in the acquired 
entity which do not value for separate recognition such as the expertise in art creation services, reputation within the industry, and, an unidentified 
proportion representing the balance contributing to profit generation. The fair value of the shares issued as part of the acquisition has been determined as 
being the share price on the date of the transaction.
Liquid Development contributed €1,999,469 revenue and €345,591 profit before tax to the Group between the date of acquisition and the balance sheet 
date. If the acquisition had been completed on the first day of the financial year, revenue of €6,068,150 would have been contributed to the Group and 
€1,169,440 profit before tax.
Acquisition costs of €63,145 have been charged through the Comprehensive Income Statement.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 69 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
32  Business combinations completed in prior periods
Acquisition of Liquid Violet Limited
On 15 January 2014 the Company acquired the entire issued share capital of Liquid Violet Limited, a video games voice production services company, 
registered in the UK. Liquid Violet specialises in the management, on behalf of major video game publishers and the acquisition is in line with the Group’s 
strategy of growing both organically and by acquisition to extend the Group’s client base, market penetration or service lines, where the Group can use its 
existing expertise, multi-service platform, scale and global reach to generate synergies.
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below.
Book  
value
€’000
Fair value 
adjustment
€’000
Fair 
 value
€’000
Financial assets
Property, plant and equipment 15 – 15
Identifiable intangible assets – customer relationship – 204 204
Trade and other receivables 65 – 65
Cash and cash equivalents 95 – 95
Trade and other payables (133) – (133)
Deferred tax liabilities – (41) (41)
Total identifiable assets 42 163 205
Goodwill 1,043
Total consideration 1,248
Satisfied by:
Cash 361
Deferred consideration 887
Total consideration transferred 1,248
Net cash outflow arising on acquisition
Cash consideration 361
Less: Cash and cash equivalent balances transferred (95)
266
The intangibles assets are to be amortised over their estimated useful lives of 5 years. 
The main factors leading to recognition of goodwill on the acquisition of Liquid Violet are the presence of certain intangible assets in the acquired entity 
which do not value for separate recognition such as the expertise in sound recording, reputation within the industry, and, an unidentified proportion 
representing the balance contributing to profit generation.
The sale purchase agreement includes a provision for an earn out which is based on Profit after tax over the next 2 years. The earn out amount was shown  
as deferred consideration and was calculated from management’s best estimates based on the available information. The maximum value of the deferred 
consideration is €1,565,890. 
During 2014 Liquid Violet contributed €376,343 revenue (including €2,827 of intercompany sales subsequently billed onwards) and €15,021 loss before tax 
to the Group between the date of acquisition and the reporting date (31 December 2014). If the acquisition had been completed on the first day of the 
financial year, revenue of €385,590 would have been contributed to the Group (including intercompany sales) and € 50,687 loss before tax for 2014.
Acquisition costs of €39,324 have been charged through the Statement of Comprehensive Income in 2014.
The deferred consideration amount has been reviewed and updated in the 2015 financial statements. No money was paid out in 2015 and the value of the 
deferred consideration which will be payable in 2016 has reduced from €887 ,000 estimated at 31 December 2014 to €703,000. The reduction in deferred 
consideration has been charged through the income statement. The value of the consideration has been updated based on a combination of actual trading in 
2015 from April to the end of the year and management’s best estimate, based on available information, of the forecast trading in the first quarter of 2016.  70 KEYWORDS STUDIOS PLC
32  Business combinations completed in prior periods continued
Acquisition of Babel Media Group
On 17 February 2014, the Company acquired the entire issued share capital of Babel Media Limited, a company registered in the UK, together with its 
subsidiary companies. Babel Media is a leading provider of outsourced video games services with operations in the UK, Canada and India. 
The acquisition will extend the Group’s client base, market penetration or service lines, where the Group can use its existing expertise, multi-service platform, 
scale and global reach to generate synergies.
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below.
Book  
value
€’000
Fair value 
adjustment
€’000
Fair 
 value
€’000
Financial assets
Property, plant and equipment 666 (225) 441
Identifiable intangible assets – customer relationship – 964 964
Trade and other receivable 2,721 (65) 2,656
Cash and cash equivalents (858) – (858)
Trade and other payables (1,506) (260) (1,766)
Short term loan (292) – (292)
Long term loan (2,705) – (2,705)
Deferred tax liabilities – (111) (111)
Total identifiable assets (1,974) 303 (1,671)
Goodwill 4,375
Total consideration 2,704
Equity instruments (1,516,944 shares of parent company) 2,704
Total consideration transferred 2,704
Net cash outflow arising on acquisition
Cash consideration –
Less: Cash and cash equivalent balances transferred 858
858
The intangibles assets are to be amortised over their estimated useful lives of 5 years. 
The main factors leading to recognition of goodwill on the acquisition of Babel Media are the presence of certain intangible assets in the acquired entity 
which do not value for separate recognition such as the expertise in provision of technical services, reputation within the industry, cost synergies with the 
Keywords Group, and, an unidentified proportion representing the balance contributing to profit generation.
During 2014 Babel Media contributed €9,846,217 revenue (including €253,127 of intercompany sales subsequently billed onwards) and €1,439,927 profit 
before tax to the Group before integration costs of €823,790, between the date of acquisition and the reporting date (31 December 2014). If the acquisition 
had been completed on the first day of the financial year, revenue of €10,882,199 (including intercompany sales) and €1,389,857 profit before tax for 2014 
would have been contributed to the group before fair value adjustments of €302,503.
Acquisition costs of €123,906 and integration costs of €823,790 have been charged through the Statement of Comprehensive Income in 2014. 
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 71 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Acquisition of Binari Sonori S. R. L.
On 8 May 2014 the Group acquired 100% of the issued share capital of Binari Sonori S. R. L. (“Binari Sonori” )for a cash consideration of €8,922,409 and 
consideration of €3,000,000 in KWS Group shares, obtaining control of Binari Sonori. The principal activity of Binari Sonori is the provision of outsourced 
voice-over and translation services to the international video games market. Binari Sonori was acquired to strengthen the Group’s audio services and 
translation services business and to extend the Group’s client base. 
The amounts recognised in respect of the identifiable assets acquired, liabilities assumed, purchase consideration and goodwill are set out in the table below.
Book  
value
€’000
Fair value 
adjustment
€’000
Fair  
value
€’000
Financial assets
Property, plant and equipment 658 – 658
Identifiable intangible assets – customer relationship – 1,791 1,791
Trade and other receivable 1,087 – 1,087
Cash and cash equivalents 3,143 – 3,143
Trade and other payables (1,711) (165) (1,876)
Deferred tax liabilities – (511) (511)
Total identifiable assets 3,177 1,115 4,292
Goodwill 7,630
Total consideration 11,922
Satisfied by:
Cash 8,622
Equity instruments (1,555,650 shares of parent company) 3,000
Deferred consideration settled in 2015 300
Total consideration transferred 11,922
Net cash outflow arising on acquisition
Cash consideration 8,622
Less: cash and cash equivalent balances transferred (3,143)
5,479
The intangibles assets are to be amortised over their estimated useful lives of 5 years.
The main factors leading to recognition of goodwill on the acquisition of Binari Sonori are the presence of certain intangible assets in the acquired entity 
which do not value for separate recognition such as the expertise in sound recording, reputation within the industry, and, an unidentified proportion 
representing the balance contributing to profit generation.
The sale purchase agreement had an earn out arrangement which has subsequently been satisfied on 19 January 2015 by consideration of €300,000 
provided in the form of 158,250 shares in Keywords Studios Plc. 
During 2014 Binari Sonori S.R.L contributed €7 ,059,626 revenue (including €187 ,586 of intercompany sales subsequently billed onwards) and €1,068,991 
profit before tax to the Group between the date of acquisition and the reporting date (31 December 2014). If the acquisition had been completed on the first 
day of the financial year, revenue of €9,049,493 (including intercompany sales) and €684,438 profit before tax for 2014 would have been added to the group 
before fair value adjustments of €1,115,348.
Acquisition costs of €156,917 have been charged through the Statement of Comprehensive Income for 2014.  72 KEYWORDS STUDIOS PLC
32  Business combinations completed in prior periods continued
Acquisition of Lakshya Digital Private Limited
On 10 October 2014 the Group acquired 91% of the issued share capital of Lakshya Digital Private Limited for a cash consideration of €2,373,780. A further 
agreement to buy the remaining 9% of the company on 10 October 2015 was signed for a consideration of €703,342 and the Group was committed to go 
through with this purchase in 2014, hence the company was 100% consolidated into the Group results.
The principal activity of Lakshya Digital Private Limited is the provision of outsourced art creation services to the international video games market. Lakshya 
Digital Private Limited was acquired to widen the scope of the Group’s services business and to extend the Group’s client base. 
The amounts recognised in respect of the identifiable assets acquired, liabilities assumed, purchase consideration and goodwill are set out in the table below.
Book 
 value
€’000
Fair value 
adjustment
€’000
Fair  
value
€’000
Financial assets
Property, plant and equipment 567 – 567
Identifiable intangible assets – customer relationship – 475 475
Trade and other receivable 1,915 (1,276) 639
Cash and cash equivalents 88 – 88
Trade and other payables (588) (60) (648)
Deferred tax asset – 293 293
Total identifiable assets 1,982 (568) 1,414
Goodwill 1,663
Total consideration 3,077
Satisfied by:
Cash 2,374
Deferred consideration 703
Total consideration transferred 3,077
Net cash outflow arising on acquisition
Cash consideration 2,374
Less: cash and cash equivalent balances transferred (88)
2,286
The intangibles assets are to be amortised over their estimated useful lives of 5 years.
The main factors leading to recognition of goodwill on the acquisition of Lakshya Digital Private Limited are the presence of certain intangible assets in the 
acquired entity which do not value for separate recognition such as the expertise in sound recording, reputation within the industry, and, an unidentified 
proportion representing the balance contributing to profit generation. 
During 2014 Lakshya Digital Private Limited contributed €612,485 revenue and €209,839 loss before tax to the Group between the date of acquisition and 
the reporting date (31 December 2014). If the acquisition had been completed on the first day of the financial year, revenue of €3,061,966 and €361,658 
loss before tax for 2014 would have been added to the group before fair value adjustments excluding customer relationships of €567 ,924.
Acquisition costs of €93,022 have been charged through the Statement of Comprehensive Income for 2014. 
In October 2015 the group acquired the remaining 9% stake in Laskhya Digital Private Limited for €897 ,000. The amount was greater than the €703,342 
previously disclosed due to a combination of a discount factor included within the 2014 figure and foreign currency movements. Additionally a further review 
of fixed assets acquired showed that they had been initially overstated at the time of acquisition and a further depreciation charge of €39k has been made 
which has been recorded against goodwill.
Notes Forming Part of the Consolidated and Company Financial Statements 
continued 73 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
33  Events after the reporting date
Acquisition of Ankama Asia Pte.Ltd.
On 22 March 2016 the Group acquired the entire issued share capital of Ankama Asia Pte Ltd, a company registered in Singapore, which specialises in providing 
services to support the live operations of the games of Ankama. The company has a four year agreement for the continued provision of service to Ankama 
and also plans to significantly increase the scale of the Studio, which is based in Manila, to service new and existing clients of Keywords. The acquisition will 
strengthen Keywords range of customer service offerings to customers with online and mobile games.
Under the terms of the acquisition, which will be immediately earnings enhancing, a total consideration of €292k in cash will be paid to the sellers.
The book value acquired of net assets is as follows:
Book
value
 €’000 
Financial assets
Trade and other receivable 12 
Cash and cash equivalents 68 
Trade and other Payables (38)
Total identifiable assets 42 
Goodwill 250 
Total consideration 292 
Satisfied by:
Cash 292 
 
Net cash outflow arising on acquisition
Cash 292 
Less: cash and cash equivalent balances transferred (68)
 224 
At the date of authorisation of these financial statements a detailed assessment of the fair value of the identifiable net assets has not been completed. 
Information on the revenue and impact on profit due to this acquisition has not been disclosed as it is impracticable to do so at this point in time.
Acquisition of Mindwalk Studios Inc and Mindwalk Studios Ltd.
On 1 April 2016 the Group announced that it has entered into an agreement to acquire the business and assets of Mindwalk Studios Inc, a company registered 
in China, and Mindwalk Studios Ltd, a company registered in the British Virgin Islands, which specialise in art creation services. The acquisition is anticipated to 
be completed, subject to certain conditions to be fulfilled, by no later than 30 June 2016. The acquisition will increase Keywords capacity in the fast growing 
art market and will provide access to art talent in the Chinese market.
Under the terms of the acquisition, which is anticipated to be earnings enhancing, the total consideration is US$5.5m. This will be satisfied by the payment  
of US$3.9m in cash to the sellers and the remaining US$1.6m in Keywords Studios plc shares to be issued to the sellers. At the date of authorisation of these 
financial statements no further information was available. 74 KEYWORDS STUDIOS PLC
Company Information
Directors Andrew Day 
Giorgio Guastalla 
Ross King Graham
Andrew Lawton 
David Reeves
Secretary Andrew Lawton 
Registered Number 8548351
Registered Office 8 Clifford Street
London
Auditors BDO
Registered Auditors
Beaux Lane House
Mercer Street Lower
Dublin 2
Principal Bankers Barclays Bank
27 Soho Square
London
W1D 3QR
Nominated Adviser and Broker Numis Securities Limited
The London Stock Exchange Building 
10 Paternoster Square
London
EC4M 7LT
Financial PR Adviser MHP Communications
6 Agar Street
London
WC2N 4HN
Solicitors Squire Patton Boggs (UK) LLP
7 Devonshire Square
London EC2M 4YH
United Kingdom 
Brown Rudnick LLP
8 Clifford Street
London W1S 2LQ
United Kingdom 75 ANNUAL REPORT AND ACCOUNTS 2015
Financial Statements I II
Notes 76 KEYWORDS STUDIOS PLC
Notes  KEYWORDS STUDIOS PLC
WHELAN HOUSE
SOUTH COUNTY BUSINESS PARK
DUBLIN 18
IRELAND
T: +353 190 22 730
www.keywordsstudios.com
KEYWORDS STUDIOS PLC ANNUAL REPORT AND ACCOUNTS 2015