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Shares in Keywords Studios (KWS) were up by around 6 per cent this morning, following declines last week which culminated in a more-than 10 per cent fall on Friday. These falls may have stemmed from – or been exacerbated by – a third-quarter trading update from US-listed games company Electronic Arts last Tuesday. Electronic Arts (US:EA) reduced its net revenue expectations for the full-year to $4.88bn, down from earlier expectations of $5.15bn. EA cited “intense competition” and “transformational change” in the video games industry. The FT cited “the likes of Fortnite” as “stiff competition”. Keywords counts EA as one of the prominent games companies that it provides services to. For now, we retain our (high-risk, long-term) buy recommendation.
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