FDEV.L

Frontier Developments Plc
Frontier Developmnts - FY24 Trading Update – a strong H2 performance
12th June 2024, 06:00
TwitterFacebookLinkedIn
To continue viewing RNS, please confirm that you are a Private Investor*

* A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:

  1. Obtains access to the information in a personal capacity;
  2. Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
  3. Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
  4. Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
  5. Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
  6. Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
RNS Number : 0457S
Frontier Developments PLC
12 June 2024
 

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

 

 

 

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTVFLFFZQLXBBX]]>
TwitterFacebookLinkedIn