Keywords Studios Share Discussion Threads

[tomps2] 08/2/2017 17:15

Edison note here

[bigbigdave] 08/2/2017 16:44

[...] I see advfn deleted this post!!!

[bigbigdave] 08/2/2017 16:27

Seller holding this back today, need him to clear off before going higher.

[nurdin] 08/2/2017 15:46

Yes Finncap are forecasting circa euro 20m PBT for the current year but I felt,reading the note ,that the forecast was made with not too much conviction. But I bow to their superior knowledge about the business.

I wonder if KWS have any IP that they use to expedite the process of translation or localisation?If they do then that would put an entirely different complexion on the business for me.

[mw8156] 08/2/2017 13:50

Guess they could continue to do well and agree with Paul Scott the main hazard is integrating all the acquisitions from all around the world; looks as though Synthesis bears some resemblance to what RWS does technical translations in multiple languages.

[nurdin] 08/2/2017 13:31

Thanks cfro,does the broker give any forecasts for the current year please? cheers

[cfro] 08/2/2017 13:25

Have been reading a broker note today (sorry cant share it) and the broker states that KWS still only have 0.5% of the total addressable market and that the overall outsourcing industry for the games market is still "very immature" with no "larger companies" operating within.

KWS are clearly in a very unique position being one of the leading players and could, feasibly, still have years of high growth ahead of it.

[tomps2] 08/2/2017 12:25

Hedley - Research Tree is great, where you can get the broker notes as they're released, but you have to pay a subscription. And to date, not all brokers are registered with them.

hxxps://www.research-tree.com/

This link gives a 10% discount:

I've found it well worth it, but I guess depends on capital invested and no. of positions. Hence % of capital, and no. of searches you use it for.

[hedley03] 08/2/2017 12:06

Anyone come across a decent site for up-to-date broker notes?

[panic investor] 08/2/2017 11:45

All acquisitions I believe were earnings enhancing and I expect further are already close to completion

[alphabeta4] 08/2/2017 11:41

Could be due to acquisitions since the last estimates and 'ahead' statements? Even today's €14.8m is €0.8m more than their 'at least €14m' previous statement.

[nurdin] 08/2/2017 11:10

Agreed.However I am somewhat surprised at the jump in forecast profits for 2017.

That estimate represents about 29% jump in forecasts profits compared to the previous estimates...hard to believe.

[alphabeta4] 08/2/2017 10:58

So by my calculations if Finncap are right:

If 2016 PBT advised this morning is €14.8m then forecast of €20.6m is a 39% increase. At an exchange of 1.17 gives £17.6m. If effective tax rate 21.4% (from 13/9 half year RNS) then post tax profit £13.84m.

At £6.10 mcap of £332m, current PE of 23.98. That's pretty cheap IMO for the level of growth we're getting here which at half year was running at 30% like for like.

[martinthebrave] 08/2/2017 09:51

#KWS report in Euros.

[nurdin] 08/2/2017 09:44

ah..thanks

[gr1982] 08/2/2017 09:41

@mginvestor has just corrected his tweet. His mistake. Should have been in Euros.

I've edited my previous post :-)

[nurdin] 08/2/2017 09:34

Wish these brokers would use a common currency base!

[gr1982] 08/2/2017 09:30

Just saw this on twitter. Seems like a hefty increase in target price and more impo in adj PBT going forward:

MG - investor ‏@MGinvestor

Finncap revised its forecasts for Keywords Studios significantly - TP up from 500p to 692p. Rev & adj PBT for 2017E e126.1m & e20.6m - KWS

[cfro] 08/2/2017 08:50

Fabulous update. Investors couldnt ask for more.

[rivaldo] 08/2/2017 08:45

Finncap say Buy today and have increased their target price to 692p (from 500p).

Not quite Berenberg's 760p target, but getting there.

[alphabeta4] 08/2/2017 08:35

I get Morningstar reports as part of TD Direct albeit they report in pounds so here I'm left guessing at the conversion rate. They're not perfect but the best I've come across (they give expected rev, EBITDA, EBIT, PBT, norm EPS and expected DPS).

[martinthebrave] 08/2/2017 08:28

Nursing hedley03 I use both because Stockopedia doesn't show Pre Tax profit which they need to sort out. Anybody know of a site that does show up to date PBT consensus?

[hedley03] 08/2/2017 08:21

Yep Digital Look figures are always out of date.

[nurdin] 08/2/2017 08:15

martinthebrave...my figure is from Stockopedia which are generally up to date.They dont give PBT figures unfortunately

[cambium] 08/2/2017 08:08

Great numbers here. I'm still holding.