MIDAS SHARE TIPS: Video games firm Winking Studios has its sights set on a profits boom
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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 acquired for £2.1 billion, equivalent to £24.50 a share. Providing services for video games – from music and art production to translation into dozens of languages – Keyword grew 40-fold during its 11 years on Aim and shareholders were richly rewarded.
Winking Studios is hoping to deliver similar sparkle. Based in Asia, Winking helps games firms with art production – developing ideas, creating characters, building 3D monsters and buildings and ensuring images look tickety-boo. The firm joined Aim last month at a price of 15p, the shares have risen to 18p and should continue in that vein, as founder Johnny Jan expands and develops the business.
A gaming enthusiast from childhood, Jan, now 48, founded his first business in 1997, spawning Winking Studios in 2004. The company has increased sales and profits steadily over the past two decades, working on top games such as Assassin's Creed, Fifa, Call Of Duty and Genshin Impact, one of the world's most popular mobile games.
Producers of these titles are drawn to Winking on two counts. First, the quality of its artwork and second, the prices charged relative to competitors. Headquartered in Singapore with offices in Taiwan, Malaysia and China, the company employs more than 800 people. Most are highly educated but they command far lower salaries than their Western counterparts.
