12 June 2024
THIS ANNOUNCEMENT
CONTAINS INSIDE INFORMATION
Frontier Developments
plc
FY24 Trading Update - a strong second
half performance
Frontier Developments plc
(AIM: FDEV, 'Frontier', the 'Group' or the
'Company'), a
leading developer and publisher of videogames based in Cambridge,
UK, reports provisional financial results for the financial year
ended 31 May 2024 ('FY24') ahead of expectations.
FY24 unaudited financial headlines
· Strong back-catalogue performance in H2 and the successful
release of Planet Zoo: Console
Edition in March delivered FY24 revenue of approximately £89
million (FY23: £104.6 million).
· During H2, annual operating costs were reduced by
approximately 20% through an organisational review, which completed
as planned in March.
· Consequently, Frontier was profitable in H2 on an Adjusted
EBITDA* basis, even without the gain from the sale of the
RollerCoaster Tycoon 3
('RCT3') publishing rights
in March.
· FY24 Adjusted EBITDA* as a whole is also expected to be in
profit, with a provisional profit of approximately £0.5 million
(FY23: loss of £4.6 million), including the gain from the sale of
the RCT3 publishing
rights.
· The strong H2 trading performance, cost reductions, sale of
the RCT3 publishing
rights, and tax cash credits resulted in an increase in cash during
H2 of over £12 million, to £29.5 million at 31 May 2024 (30
November 2023: £17.1 million, 31 May 2023: £28.3
million).
*Adjusted EBITDA is earnings before
interest, tax, depreciation, amortisation and impairment charges
related to game developments and game technology, less investments
in game developments and game technology, and excluding
restructuring costs, share-based payment charges and other non-cash
items.
Outlook
During 2023, Frontier reset its
strategy to refocus on creative management simulation ('CMS')
games, a genre where it has been most successful and is considered
an industry leader. Frontier has previously confirmed three CMS
games for release over the next three consecutive financial
years: the development of the unannounced
own-IP CMS game is on track for release in FY25 and Frontier
expects to announce the title in the coming months; the
third Jurassic
World game confirmed on 9 May 2024 is scheduled for FY26;
and a third, unannounced CMS game is planned for FY27.
As well as the unannounced own-IP
CMS game coming this financial year, FY25 will also see the launch
of Frontier's third F1® Manager
game, with F1® Manager
2024 confirmed for release on 23
July 2024 on PC, PlayStation® 5, Xbox Series X|S, PlayStation® 4
and Xbox One.
The Board is comfortable with the
current consensus of analyst expectations for FY25 revenue of £87
million, and is confident of being able to achieve profitability in
FY25 through a continued focus on driving return on investment and
tight cost control.
Jonny Watts, Frontier's CEO, said:
"I
am pleased to confirm an improvement in our financial performance
for the second half of the financial year. It has enabled us to
report an adjusted EBITDA profit for the financial year and an
increase in our cash position. I'd like to thank our people for the
positive turnaround we have achieved together in the last six
months.
We
have started the new financial year reset and refocussed, with a
clear strategy and sustainable cost base. We have a game portfolio
that continues to deliver pleasing results and an exciting CMS-led
roadmap ahead. I look forward to the launch of
F1® Manager 2024 next month, and to revealing
the details of our own-IP CMS game coming later in the financial
year".
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU)
No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. The person responsible for making this
announcement on behalf of the Company is Alex Bevis.
Enquiries:
Frontier Developments +44 (0)1223 394 300
Jonny Watts, CEO
Alex Bevis, CFO
Peel Hunt -
Nomad and Corporate Broker +44
(0)20 7418 8900
Neil Patel / Paul Gillam / Kate
Bannatyne
Liberum -
Joint Corporate Broker +44 (0)20
3100 2000
Max Jones / Matt Hogg / Nikhil
Varghese
Teneo
+44 (0)20 7353 4200
Matt Low / Arthur
Rogers
About Frontier Developments
plc
Frontier is a leading independent
developer and publisher of videogames founded in 1994 by David
Braben, co-author of the iconic Elite game. Frontier uses its
proprietary COBRA game development technology to create innovative
genre-leading games, primarily for personal computers and videogame
consoles.
Frontier's LEI number:
213800B9LGPWUAZ9GX18.
www.frontier.co.uk
