Keywords Studios Share Discussion Threads

[aimingupward2] 05/4/2019 10:32

Interesting stuff indeed. Many thanks for your contributions to this board, rivaldo.

[rivaldo] 05/4/2019 10:08

Interesting stuff re a KWS subsidiary and its involvement in Big Data and AI:



"Founded in Tokyo in 2017, Yokozuna Data, a Keywords Studio, is the first data science company in the video game industry to develop a machine learning engine that predicts individual player behavior, an achievement that is pushing back the frontiers of behavioral data science. Yokozuna Data provides game studios with a prediction platform and recommendation system that employs next-generation machine learning algorithms and the latest techniques in big data processing and cloud computing to increase game monetization, playtime, and VIP retention, while supporting a player-focused data-driven development. Yokozuna Data is at the forefront of behavioral data science research, having published numerous peer-reviewed papers and regularly participating in top-tier international conferences and delivering seminars in academic and educational institutions. The company has won several accolades for their technology and research."

[rivaldo] 04/4/2019 22:58

Nice tip on Forbes' web site:



"Today I’m looking at two brilliant companies whose share prices could rise next week.

Keywords Studios

You may not have heard of Keywords Studios but it’s a stock that’s making some serious waves in the global video games industry.

The AIM-quoted company -- which provides technical assistance to game developers -- is riding the stunning popularity of the Fortnite franchise across the world, and said in January said that it expected full-year revenues for 2018 to have leapt to “at least” €250m from €151.4m the year before.

The Fortnite phenomenon is yet to show any signs of dying down any time soon as developer Epic Games stays committed to bringing out different playing modes for the popular franchise. Indeed, the company estimates that the Creative mode which was launched in December has attracted some 100 million gamers already. And this bodes well for Keywords’s bottom line for a long time yet.

For this reason I’m expecting another strong update when full-year results are put out on Monday, April 8. But Keywords is by no means a one-trick pony.

The tech titan is expanding its range of services to cover exciting new areas, ones like “predictive analytics, music services, marketing services, sound design, and Hollywood-based voice production and writing services” (as the firm itself noted in January’s update), and areas which the business has built its presence in with the help of ongoing M&A activity. It’s made nine acquisitions since the start of 2018 alone.

One other reason to be bullish: the rollout of 5G mobile networks and improvement in internet bandwidths, moves which will bolster the growth of so-called cloud gaming, also presents stunning sales opportunities for Keywords further down the line.

City analysts are certainly optimistic and they predict earnings expansion of 21% in 2019 and 12% next year, projections that make the business a bargain on paper (it sports a forward PEG reading of just 1.1 times). In fact, this low rating could provide the platform for Keywords’s share price to take off in the wake of fresh trading details next week."

[togglebrush] 04/4/2019 08:50

Irish Press
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Begins
Dublin-based video game content provider Keywords Studios is expected to make fewer acquisitions this year but could well spend more on the purchases it does make.

[rivaldo] 04/4/2019 08:37

New commentary from the analyst at Goodbody's stockbrokers in Ireland:

"Keywords Studios is well-positioned to gain from tech giants' move into cloud gaming, as demand for localization and videogame software engineering should rise, Goodbody says. Alphabet's Google has unveiled plans for its Stadia platform and Microsoft, Tencent and Amazon are expected to follow suit, the brokerage says. "There is an opportunity for Keywords to act as a key strategic partner to such platforms," Goodbody says. A key investor focus on the Irish provider of services to the videogames industry--which is due to report 2018 earnings next week--will be its deal pipeline, as the company is expected to spend EUR60 million on acquisitions this year, Goodbody says."

[gareth004] 04/4/2019 08:10

Great prospect and growing business model with great acquisitions in a huge growing industry, what's not to like along with strong revenue to be announced... gla buy

[rivaldo] 03/4/2019 08:40

Here's the tip FYI:



"Geeks have never been more in demand

In the video games arms race, developers have to spend big on manpower. Grand Theft Auto creator Rockstar Games is a case in point: the company employed more than 3,000 people to make the Wild West epic Red Dead Redemption 2, which sold 17m copies in eight days after release.

Keywords Studios wants to exploit that trend. The Dublin-based company, valued at £740m and listed on London’s junior market, is the largest provider of third-party services to the gaming industry, from visual effects to games testing.

Keywords is convinced that as games become more complex, developers will have to outsource more work so they can scale up quickly and release games on time.

That argument has been largely overshadowed of late. Keywords’ share price has dropped by 25% to £11.56 over a year as some of the industry’s biggest developers took a hit from the growth of online shooter Fortnite.

Activision Blizzard, the company behind the Call of Duty series and Candy Crush, surprised the market in February when it posted lower-than-expected profit forecasts for the first quarter.

However, Berenberg analyst Edward James thinks doubts over Keywords are “ill-founded” and says big developers have shown little sign of easing investment in new titles. Outsourcing could even grow faster than the video games sector as a whole, according to Liberum analyst Alexandre Schmidt, with the likes of Keywords snaffling market share by cross-selling services.

These are not the only reasons to give Keywords a second look. Google announced this month that it would break into the £100bn global computer games industry by launching the Stadia streaming service.

The American tech giant expects big things from “cloud gaming”, where players stream games from Google’s vast data centres. The move could trouble console makers such as Sony and Microsoft. For those down the food chain, it’s a big opportunity.

If cloud gaming follows the Netflix route, the cost of playing games should fall. A monthly subscription fee for access to multiple games could work out cheaper than the £45 it costs to buy a new game off the shelf.

It would also do away with the need for an expensive console, making gaming more affordable in countries such as India or areas of South America. That could prove a boon for Keywords, which is also a big provider of translation services to the video games industry.

With Amazon also preparing a push into cloud gaming, Keywords looks like a solid long-term bet. Buy."

[aimingupward2] 01/4/2019 09:38

Yes, a nice positive review of the future scope of the business to develop and expand.

[rivaldo] 01/4/2019 09:31

Moving nicely now.

And KWS were tipped as a Buy in yesterday's Sunday Times.

[togglebrush] 31/3/2019 10:11

RESULTS due Monday 8th April
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The Group expects to announce its full year results for the year ended 31 December 2019 on 8 April 2019.
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Trade update 31st Jan extracts:-
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The Board expects full year revenues to be at least EUR250m (FY17: EUR151.4m) and adjusted profit before tax* of approximately EUR37.8m (FY17: EUR23.0m). The Group's effective tax rate, based on Keywords Studios' measure of profit before tax* has continued to reduce and is expected to be 19.0% (FY17: 20.5%). As a result, adjusted earnings per share are expected to be c.47.0c, which would be an increase of 51% compared to the prior year (FY17: 31.18c)
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Almost all of the seven service lines have delivered a strong performance, with particularly strong growth in our Player Support and Engineering businesses, partially offset by a weaker than expected performance from Localisation Testing which saw a number of titles move from the last quarter of the year into the current year.

[ali47fish] 27/3/2019 14:18

Octopus Investments Nominees adds a tiny bit

[bamboo2] 20/3/2019 12:34

hi Rath, price does look more stable.

Potential for an INVH&S, on the major falling trendline/neckline although so far, confirmation has been rejected.

Hist support range at approx 1000-1050.
Potential turn 22/3/2019

[rathean] 20/3/2019 12:19

make = market... fat fingers strike again

[rathean] 20/3/2019 12:19

Same, we appear to have found a narrow range to bounce around in. Tough to call given its susceptibility to make sentiment and recent minnow deals that don't build confidence. I'll continue to watch for now, I suspect a retest of recent lows will trigger short closing and a strong move north if or when it happens imo dyor ofc.

[scooper72] 15/3/2019 09:46

Trying to work out when to dip back in and top up my current small holding. This seems to be doing a similar range bound movement like FDEV

[phowdo] 06/3/2019 15:39

Coming off now. Must be the shorters fault ;)

[wattene] 05/3/2019 12:00

Government Petition to Ban shorting of London AIM stocks.

The AIM stock market is where smaller companies list their shares rather than using the prohibitively expensive main London Stock Market. This is an important market for the growth of smaller UK companies.

In challenging times, shorters seek to borrow the company's shares from a holder for a consideration and to buy them at a later date. They immediately sell these shares which, due to the relative illiquid market, sends the price much lower and hence the shorters can buy them at that lower price - pocketing the difference. The only beneficiaries are the shorters and the market makers with the losers being the reputable company and it's bona fide investors.

[togglebrush] 03/3/2019 13:49

aimingupward2 … Many Thanks

[aimingupward2] 03/3/2019 12:36

The group has already announced, in it’s trading statement at the end of January, that it expects to publish it’s annual results on 8th April.

[togglebrush] 03/3/2019 09:13

Possible Results due first or second week in April ???
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Previously 4th April 2017
__________ 9th April 2018

[rathean] 21/2/2019 09:05

When it was founded is irrelevant, we don't know it's growth curve, funding position from the outset. It's a value accretive deal nothing more, another for the expanding service offerings.It'll take something with real visible revenue benefits to push up beyond 1200 imo dyor ofc.

[phowdo] 21/2/2019 07:32

"GetSocial is currently in a development phase, having invested ahead of building revenues, but it is expected to become profitable during 2020."
"GetSocial was founded in 2012."

No financials in the RNS, not even price paid.
Shareholders better hope they didnt overpay for a company that isnt profitable even after 7 years...

[bulltradept] 21/2/2019 07:29

Another acquisition although this time Not profit making currently..

[bamboo2] 16/2/2019 10:40

scooper, fwiw, my chart showed a potential turn for 14-15/2/2019, and this has confirmed as high turn, so you probably have done the right thing for now. No advice intended.

Next potential turn is early next week, 18-19/2/2019. It could be a low turn, although sometimes they can just indicate a change in the angle of the existing trend. For this reason I always use these turns in conjunction with historical support/resistance, simple chart patterns and some other indicators.

In this case I would also be looking for a price iro 980-1000 which coincides with historical support.

It is interesting, from a TA perspective that the 916 gap is now filled.

From a chart pattern pov, longs really need to see a positive and confirmed reversal pattern develop, with price finding its way above the 50sma. There are a number of INVH&S patterns. The lowest requires an eod close above approx. 1075 to confirm.