Frontier Developments (AIM:FDEV), the Cambridge-based video games developer and publisher behind the Jurassic World Evolution and Planet Coaster franchises, reported record adjusted operating profit of £21.4 million for the year ended 31 May, up 62% from £13.2 million a year earlier.
Revenue rose 16% to £104.8 million, driven by the launch of Jurassic World Evolution 3 and continued strength in the Planet Coaster and Planet Zoo franchises, which together with Jurassic World made up 89% of total revenue, up from 77% in FY25.
Operating profit under IFRS nearly doubled to £25.0 million, helped by a one-off £4.4 million transitional tax credit tied to the shift from the Video Games Tax Relief scheme to the newer Video Game Expenditure Credit regime.
Basic earnings per share climbed 76% to 74.6p, aided by £15.5 million spent on share buybacks that cut the share count by 10%.
Cash stood at £44.0 million at year-end, rising to £51.4 million by the end of August, prompting the board to declare a £5.0 million special dividend of 14.1p per share, payable 9 October.
"With a strong balance sheet, a talented team, and an exciting roadmap ahead, we are well positioned to deliver sustainable growth, enduring player value, and long-term returns for our stakeholders," said Jo Cooke, who became chief executive on 1 January following Jonny Watts' departure.
Planet Zoo 2 launches 13 October, with Warhammer 40,000: Chaos Gate - Deathwatch due before the end of FY27, and the board said it expects to deliver FY27 in line with expectations.
News Intelligence what this means for the company
Frontier Developments delivered record adjusted operating profit of £21.4 million (up 62% year-on-year) on 16% revenue growth to £104.8 million, driven by Jurassic World Evolution 3 and sustained strength in its core simulation franchises. The company is returning cash to shareholders via a £5 million special dividend while maintaining a £51.4 million cash position and signalling confidence in FY27 delivery, with Planet Zoo 2 launching this month and Warhammer 40,000: Chaos Gate - Deathwatch due before year-end.
The 62% profit jump and record adjusted operating margin demonstrate the operating leverage in Frontier's live-service model, though the IFRS profit benefited from a one-off £4.4 million tax credit that will not repeat. Concentration risk has intensified—the three core franchises now represent 89% of revenue (up from 77% a year ago)—making near-term pipeline execution (Planet Zoo 2, Warhammer title) critical to sustaining momentum.
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