Keywords Studios PLC (AIM:KWS, OTC:KYYWF) said sales rose 19% in the first half of 2023 with underlying growth of 10% in spite of a negative impact from currency translation.
During the period the video games ancillary specialist acquired four companies for a total cost of €130mln, which boosted the total, it said.
Operating profits for the first half will be around €59mln, up 5% from the comparative period in the prior year and reflecting a normalisation of margins towards 15%, something Keywords had flagged previously.
Bertrand Bodson, chief executive, added it is also building a suite of AI products to handle critical post-production client needs.
Shares in the group have weakened on concerns it will be a casualty of new AI-based processes for video games, but Bodson said it represented an opportunity.
“We have over 4,000 dedicated engineers and technical experts in Create with a long track record of unlocking and utilising multiple generations of new technologies.
“We have an unparalleled opportunity to work with clients, who have been trusting us with their games for decades, to help them navigate the complex challenges that are currently a barrier to adoption of Generative AI in the AAA game production process.”
Bodson added that so far it had seen little impact from the entertainment industry strikes in the US, which have been sparked by the threat of AI-written scripts, but is monitoring the situation while its Engage division saw some projects slip into the second half of the year.
Overall, the group continues to trade well, said Bodson, and it is guiding for full-year organic growth to be similar to the first half, supplemented by acquisitions, and for adjusted operating margins to remain around 15% for the year.
