TIDMFDEV
RNS Number : 5776L
Frontier Developments PLC
01 May 2020
Frontier Developments plc
Frontier signs an IP Licence with Games Workshop Group PLC and
provides an update on trading
-- IP rights licenced from Games Workshop to develop and publish
a real-time strategy game worldwide on PC, console and streaming
platforms for release in FY23
-- Game based within the globally popular world of Warhammer(R) Age of Sigmar(R)
-- Two major releases from internal development teams are now
confirmed for each of FY22 and FY23
-- Lockdown-related demand for games is having a positive impact on sales globally
-- Home working for all staff has been in place for over a month
Warhammer Licence
Frontier Developments plc (AIM: FDEV, "Frontier", the "Company")
, a leading developer and publisher of videogames based in
Cambridge, announces an exclusive IP licence (the "Licence") with
Games Workshop to develop and publish a real-time strategy game
within the rich and extensive world of Warhammer Age of Sigmar.
Warhammer Age of Sigmar is Games Workshop's most recent
iteration of the globally renowned fantasy setting in which the
four Grand Alliances of Order, Chaos, Death and Destruction vie for
control of the Mortal Realms. Unique and distinct in style, and
endless in scope, this ever growing universe sits alongside the far
future dystopia of Warhammer 40,000 as the most successful tabletop
miniatures games in the world.
Under the terms of the Licence, Frontier has the exclusive
rights to develop and publish a real-time strategy game worldwide
on PC and console platforms, together with the rights for streaming
services. The game is planned for release in Frontier's financial
year ending 31 May 2023 ("FY23").
Release Roadmap
Frontier's development roadmap is now stronger than ever, with
two major releases from internal development teams now confirmed
for each of FY22 and FY23. FY22 will benefit from the
multi-platform release of a game based on an as-yet unrevealed
major global IP and the release of Frontier's first Formula 1
multi-platform management game alongside the 2022 F1 season. FY23
will see the release of the 2023 Formula 1 management game and the
Warhammer Age of Sigmar multi-platform real-time strategy game.
For the financial year ending 31 May 2021 ("FY21") two
internally developed major releases are also planned: Planet
Coaster expanding onto PlayStation and Xbox, and a major new
paid-for release for Elite Dangerous.
FY21 and beyond will also benefit from releases from Frontier's
third party publishing initiative. Two games have been signed for
release in FY21, with a further three already signed for FY22 and
scope for more. Five or six third party game releases per year are
expected from FY23 onwards.
Trading Update and Covid-19
The safety of our team is Frontier's main priority and we acted
quickly to transition the majority of our 500+ staff to home
working during March, prior to the lock-down. It is testament to
their dedication and positive attitude that we were able to release
both the Elite Dangerous: Fleet Carriers Beta update and the Planet
Zoo: South America Pack on schedule before Easter and to a positive
reception.
Like many companies selling mainly online in the digital
entertainment industry we have seen increases in demand for our
products. This started in China from February and in much of the
rest of the world from March, and is likely related to global
lock-down conditions. We believe the immersive and creative nature
of our games and the engaging play times of hundreds of hours makes
them particularly popular in today's uncertain world.
Based on this increased demand, the Board now expects revenue to
be towards the top of the previously stated range of GBP65-73
million for the current financial year ending 31 May 2020 ("FY20"),
with operating profit, as reported under IFRS, anticipated to fall
within the range of GBP11-13 million.
Our next major releases are Planet Coaster coming to PlayStation
and Xbox and a major new paid-for release for Elite Dangerous,
together with the first two games from our third-party publishing
initiative. We had originally planned for the Elite Dangerous major
update to release in December 2020, but, in the context of the
current Covid-19 environment, we have now set a Q1 2021 release
date. We do not believe this short delay will materially affect
revenue in FY21. All four of these releases, being two internal
developments and two partner developments, are still planned for
FY21.
It is too early to judge the long-term effect of home working on
efficiency, and there remains significant uncertainty regarding how
long the lock-down may continue. We are continually assessing any
potential impact on development. A small number of days were
disrupted due to the transition in March, and while we anticipate
some level of ongoing disruption, and thus potential delays to
production schedules for content releases, including for Elite
Dangerous' next major update, we do not foresee a permanent loss of
efficiency.
The company is in a strong position, and while the Board
continues to monitor closely the impact of Covid-19, we do not
currently expect to use Government employment support or apply for
grants. We continue to recruit and we already have a number of new
joiners who have started with us by working from home. The business
has a strong, debt-free balance sheet with cash of approximately
GBP40 million, which allows us to continue to invest in our
strategy of developing and nurturing high quality games.
David Braben, Frontier's Chief Executive, said:
"We are delighted to announce this licence with Games Workshop.
I personally think it's great news that two such well-established
and world-class creative UK companies with global reach are
collaborating on a new project. We look forward to working closely
with the team at Games Workshop to bring the rich world of
Warhammer Age of Sigmar to a wide audience through an immersive and
accessible real-time strategy game on both PC and console.
Our roadmap is looking stronger than ever, with two games from
our internal developments for each of FY22 and FY23 and an exciting
portfolio coming up from our third party publishing initiative,
starting in FY21.
I am incredibly proud of the positive reaction of our staff to
the challenges of Covid-19 and would like to thank them all for
their dedication. We were delighted to release Elite Dangerous:
Fleet Carriers Beta and Planet Zoo: South America Pack before the
Easter weekend as planned."
Jon Gillard , Global Head of Licensing at Games Workshop,
said:
"As Warhammer becomes an ever larger brand and our legions of
fans around the world look for exciting ways to experience the
splendour of our settings, we are always looking for the highest
quality partners to work with. Frontier is just such a company,
with an incredible heritage, and an innovative and highly polished
development capability clearly demonstrated by their compelling
vision for this game. This will be the first RTS set in the epic
fantasy world of the Age of Sigmar, which is the kind of game that
Warhammer and strategy fans have been clamouring for. We know that
the team at Frontier are the perfect people to take on that great
responsibility and do it justice."
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation (EU) 596/2014. The person
responsible for making this announcement on behalf of the Company
is Alex Bevis.
Enquiries:
Frontier Developments +44 (0)1223 394 300
David Braben, CEO
Alex Bevis, CFO
Liberum - Nomad and Joint Broker +44 (0)20 3100 2000
Neil Patel / Cameron Duncan
Jefferies - Joint Broker +44 (0)20 7029 8000
Max Jones / William Brown
Tulchan Communications +44 (0)20 7353 4200
Matt Low / Deborah Roney / James Macey White
About Frontier Developments plc
Frontier Developments plc (AIM: FDEV) is a leading independent
developer and publisher of videogame franchises founded in 1994 by
David Braben, co-author of the seminal Elite game. Based in
Cambridge, UK, Frontier's world-class team of over 500 staff create
innovative games using the Company's own proprietary 'COBRA' game
development technology to entertain global communities of players
on video game consoles and personal computers.
Frontier's LEI number: 213800B9LGPWUAZ9GX18.
www.frontier.co.uk
About Games Workshop
Games Workshop Group PLC (LSE:GAW.L), based in Nottingham, UK,
produces the best fantasy miniatures in the world. Games Workshop
designs, manufactures, retails, and distributes its range of
Warhammer Age of Sigmar and Warhammer 40,000 games, miniature
soldiers, novels and model kits through more than 529 of its own
stores (branded Games Workshop or Warhammer), its own web store,
and independent retail channels in more than 50 countries
worldwide. More information about Games Workshop and its other,
related, brands and product ranges (including its publishing
division 'Black Library' and its special resin miniatures studio
'Forge World') can be
found at www.games-workshop.com .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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