When Keyword Studios floated on Aim in 2013, the business was valued at £49 million and shares were changing hands at £1.23 each. Two months ago, Keyword was valued at £2.1 billion, which equates to £24.50 per share.
Providing services for video games – from music and art to translation into many languages - The keyword grew 40 times in its 11 years on Aim and paid a lot of shareholders.
Winking Section he hopes to produce the same brilliance. In Asia, Winking helps game companies with art – developing ideas, creating characters, creating 3D monsters and buildings and ensuring the quality of images. The firm joined Aim last month at a price of 15p, the shares have risen to 18p, and should continue in that direction, as founder Johnny Jan expands and develops the business.
A gaming enthusiast since childhood, Jan, now 48, founded his first business in 1997, and Winking Studios was born in 2004. The company’s sales and profits have grown steadily over the past two years. recently, working on big games like Assassin’s Creed, Fifa, Call. Of Duty and Genshin Impact, one of the most popular mobile games in the world.
The creators of these titles are drawn to Winking on two fronts. First, the quality of his artwork and second, the prices compared to competitors.
Headquartered in Singapore with offices in Taiwan, Malaysia and China, the company employs over 800 people. Most of them are well educated but their wages are lower than their Western counterparts. This means that Jan can offer artistic services at prices two or three times cheaper than European or US operators – a very attractive idea at a time when the sports industry is trying to reduce costs. pay.
Screen shots: Winking Studios works on hit computer games like Call Of Duty
Video gaming is a huge industry, worth around £200 billion, almost twice the size of the film and music sectors. Since it used to be reserved for young boys, gambling has become popular with young and old, men and women.
Population is not the only change affecting this industry. In the past, enthusiasts would buy a game, plug it into their computer or console, and play until they were bored. Today, games are downloaded via computer, and developers release regular updates, creating a workflow for Winking Studios, with nearly half of the team’s revenue coming from titles. current.
Winking specializes in games for mobile phones, the fastest growing segment of the market.
Already accounting for more than a quarter of all sales, revenue from the mobile sector is expected to show annual growth of ten percent or more between now and 2028.
Outsourcing is another big trend in this industry, with game publishers using outside expertise to lower costs and gain a competitive advantage.
Jan is very ambitious. Revenues are expected to increase by 15 per cent to $38 million (around £30 million) between now and 2026, with profits expected to increase from $700,000 to around $4 million, with more to follow in subsequent years. He wants to pay interest, which will start as low as one percent next year but will increase as the business grows.
Like Keyword, sales play an important role in Winking’s development, and here Jan has an ace in the form of Taiwanese computer giant Acer. Eager to expand into the entertainment market, this multi-billion dollar firm took a major stake in Winking two years ago and now owns 62 percent. Although the shares are smaller than other investors, Acer has deep pockets and is willing to support Jan’s growth strategy with hard cash.
Two acquisitions have been completed in the past year, and there are likely to be more, to increase Winking’s customer base and its range of services. Jan is also developing an AI package to speed up delivery and cut costs.
Midas Decision: Winking may be headquartered in Asia but Jan chose to list in Aim because he wants to expand into Western markets. The UK is home to some of the most talented people in the industry, making London ideal for this fast-growing industry. At 18p, the shares are selling.
Trade on: Goal Points: WKS Contact: winkingworks.com
DIY PLATFORMS Investing
AJ Bell
AJ Bell
Flexible and ready-made accounts
Hargreaves Lansdowne
Hargreaves Lansdowne
Free financial services and investment ideas
interactive entrepreneur
interactive entrepreneur
Investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on shopping fees
Trade 212
Trade 212
Free work and no deposit
Affiliate link: If you download a product This Money earns a commission. These prices are selected by our editorial team, because we think they are worth celebrating. This does not affect our independence.
