Keywords Studios Share Discussion Threads

[terry topper] 30/12/2020 20:34

Cheers aiming for not telling me to shut up!!!! My view is that as there are very few institutions that don't invest in AIM these days, I genuinely think that the downside could be pretty significant if KWS were to move at this moment. I don't think there would be lots of natural buyers that only invest in fully listed stocks. However my constant fear is a change in the rules around these stocks on the IHT exemption front - at first glance when you look at a stock like FEVR (£3bn mkt cap) it seems wrong to give investors tax advantages ... but the tax advantages helped a new great British company get where it is today. I believe that GBG and ALU moved from the main list to AIM partly because of the belief that they would attract additional UK investors (been very successful for GBG, not so much for ALU so far - I am patient!)

[aimingupward2] 30/12/2020 20:19

Yes, you’re right, terry topper, and that may be sufficient to prevent it happening, although there would be some offsetting advantages.

[terry topper] 30/12/2020 19:33

aimingupwards Tell me to shut up if I'm teaching you to suck eggs.....but KWS is a big IHT tax avoidance share so a move to the main board would lead to a lot of disappointment/anger from many shareholders.

[terry topper] 30/12/2020 19:28

Took my first profits on KWS today - feels a bit 'dirty'!

[aimingupward2] 29/12/2020 13:54

Thanks for that, Aolaol. Yes, there's plenty more growth foreseen over the next three years for starters. Keywords is already a 'top 200' company in the U.K. (actually 179th), so I wonder how long it might be before it leaves AIM and joins the main mkt. The video games industry is huge ,at $150 bn, and still growing.

[aoiaoi] 29/12/2020 11:34

Best to listen to their Capital Market webinars.....Video gaming is on a roll and methinks there is massive scope for KWS, I think (objectively and factually) they have just got started!

[aimingupward2] 29/12/2020 11:13

Has anyone any clear views as to how much further scope there is for KWS to increase it's share of it's market(s) by further acquisitions and by internal growth ?

[netcurtains] 18/12/2020 10:01

2017 was a long time ago.... Different company now.

[energeticbacker] 18/12/2020 09:54

The deal making goes on and since Investor's Champion's original premium commentary on Keywords Studios in June 2017 the shares have risen over 250%.

[aimingupward2] 17/12/2020 08:35

Two more, to be precise. Small companies but seemingly both of high quality.

[ali47fish] 17/12/2020 07:53

aquisition wow

[energeticbacker] 16/12/2020 10:20

Investor's Champion comments: High Voltage is expected to generate EBITDA of c. US$9.0m in 2021, on which basis the c2.6x acquisition multiple looks very modest.

[aimingupward2] 15/12/2020 10:44

Yes, it looks to be a particularly good one. Andrew Day says their ‘multitalented team’ will bring “incredible experience, expertise and additional scale to our fast growing Game Development Service Line”. EDIT: This acquisition has been bought for approx 6 times EBITDA for next year as opposed to the 10 times paid for the acquisition of Net Media a few weeks ago, making it all the more attractive.

[ali47fish] 15/12/2020 07:29

important aquisition today

[aimingupward2] 11/12/2020 10:05

Jefferies raise their target price from 2555p to 2733p with a BUY recommendation. EDIT : Another couple of days like today and we'll be there !

[robow] 02/12/2020 08:17

from Citywire Peel Hunt upgrades Keywords as risks reduce Peel Hunt has upgraded Keywords Studios (KWS) as it believes the risks around the outsourced gaming services platform have reduced. Analyst James Lockyer upgraded his recommendation from ‘sell’ to ‘reduce’ and increased his target price from £15.23 to £20.11 after ‘impressive upgrades last week showcased Keyword Studio’s resilience during such a trying time’. ‘It also announced the acquisition of Net Media, a marketing service provider. As a result of this and the potentially softer comps for next year, we believe Covid-19 and general risks with its roll-up strategy have lessened,’ he said.

[aimingupward2] 27/11/2020 12:33

Yes, that all sounds valid, I agree. Thanks AB4.

[alphabeta4] 26/11/2020 21:41

Aiming, I'm aware they report in Euros it's just to forecast €327m revenue would be the same as last year when KWS are already advising organic growth and acquisitions will be adding to the total. If however you interpret it as pounds and convert to Euros the rest of the figures make sense. Sharecast seem to sometimes transpose the data without checking the currency of the analyst reports properly.

[energeticbacker] 25/11/2020 14:12

Keyword Studios: the adjustment kings. The adjusting items are a veritable book in themselves and include: share option expense, costs of acquisitions and integration, amortisation of intangible assets, non-controlling interest, foreign exchange gains and losses and unwinding of discounted liabilities The impact of COVID-19 government subsidies claimed is also excluded. Investor's Champion asks: is there any point of statutory reporting?

[aimingupward2] 25/11/2020 13:22

It has been the intention of KWS over the past 2-3 years to gradually expand beyond the games industry into, e.g., e-learning, film and T.V. The acquisition of g-Net Media is, in part, a move in this direction. It is a highly regarded and growing company which includes amongst it’s clients media and entertainment companies such as Netflix, Amazon Prime, and NBC Universal. It is a growing company from which Keywords should benefit nicely and for which they seem not to have overpaid.

[ali47fish] 25/11/2020 07:24

aquisition

[aimingupward2] 24/11/2020 19:56

Alphabeta4, you say that Sharecast says it’s figures are in euros but that is an error and it should read £s. Are you sure about that? KWS always report in euros..

[ali47fish] 24/11/2020 18:01

Alphabet-many thanks and i really appreciate this- i hopoe you will continue to post-normally sharecast dont offer much analysis but yours is helpful!

[alphabeta4] 24/11/2020 11:35

Hi ali47fish Some of us are still around, I've worked out some new figures using Sharecast today it's just I don't often post my notes as it all takes time and there's so much going on at the moment. FWIW I've focused on looking forward as I think that the market will be more interested in what any updates do to 2021 rather than 2020. Sharecast had £327m revenue, £39.68m ptp this yr and 43.98p eps. Next was £374m revenue, £49.8m ptp for 53.75p. Note Sharecast says these are in € but that's an error, should read £s. https://www.sharecast.com/equity/Keywords_Studios If adj PBT this year is to be €52m at a cautious 1.13 I make that £46m. Next year Sharecast has revenue to rise 14%. This would give me £52.46m ptp on a flat operating margin so a beat of 5%. The 14% revenue would look fairly cautious as I've got this year's acquisitions will do 1.6% of that laving 12.4%. Looking at what the company has done historically that is pretty undemanding and there should be higher organic vs this year from the benefit of certain service lines being able to operate far more effectively than they've done this year having suffered from lockdowns (e.g. voiceovers, testing etc). So overall this update is worth 5% to me, derisks the need for operating margin expansion (which may prove a nice surprise as I bet not all units have been operating as effectively as pre covid and there should also be some spare capacity laying unused) and then finally my estimates ignore any further benefits from further acquisitions from the decent cash pile in the background. Business looking pretty solid IMHO.

[robow] 24/11/2020 11:26

yes -a good opportunity to add