Keywords Studios #KWS : A diversified, resilient business in troubled times Keywords delivered a strong performance in FY19 (revenue growth of 30.2% overall, 15.5% organic, 21.2% like-for-like), very much in line with its January trading statement. In the face of the uncertain impact of COVID-19, we are revising our FY20 revenue estimate down, assuming nominal l-f-l 1% revenue growth, with operating profit falling to €38.1m (11.2% margin). We introduce FY21 forecasts, with games industry growth in FY21 helping the business bounce back with 15% revenue growth. The company’s FY21e P/E multiple of 31.1x reflects continuing industry growth, a strong track record and leading market position. The group prudently cancelled its final dividend for FY19, but has a strong balance sheet with €112m of cash and undrawn facilities as at YE19, leaving it well positioned for M&A.