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Media & Entertainment Gaming Frontier Developments

Frontier Developments posts record adjusted profit as simulation titles drive 16% revenue growth

Chief executive Jo Cooke said the company is now set for further success, with three new games scheduled across the next two financial years

by tickstock newsroom
A young person is engaged in gaming while wearing headphones, with a computer screen displaying a high-visual quality video game. The lighting creates a focused atmosphere, highlighting the intensity of the gaming experience. aiImage created using AI — Midjourney

Frontier Developments, the AIM-listed video games developer, reported a record adjusted operating profit for the year ended 31 May, up 44% to £19 million.

The previous high was £15.9 million, set in the financial year ending 2019.

Revenue rose 16% to £104.8 million, with Creative Management Simulation titles accounting for almost 90% of sales.

Jurassic World Evolution 3, Planet Coaster and Planet Zoo were the primary performance drivers across the period.

Cash generation excluding capital transactions improved to £18.8 million from £12.9 million, while gross operating costs rose approximately 3% to £62.4 million.

Underlying adjusted profit, stripping out a £3.9 million gain on the sale of publishing rights recorded in the prior year, more than doubled year-on-year.

Chief executive Jo Cooke said the company is now set for further success, with three new games scheduled across the next two financial years.

The current financial year is expected to start positively, with Jurassic World Evolution 3 joining Microsoft Game Pass on 2 June and a Jurassic World Rebirth expansion due on 16 June.

Planet Zoo 2 is scheduled for release on 13 October, and Frontier said it expects higher tax credits following its move to the Video Games Expenditure Credits regime.

by tickstock newsroom

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