- Frontier said its revenue totaled around £89 million for the year ending May.
- Cambridge-based company plans to launch F1 Manager 2024 soon
Frontier Developments delivered better-than-expected annual results after a strong performance in the second half.
The maker of Elite Dangerous said high demand for its catalog games and Planet Zoo: Console Edition helped its revenue total around £89m for the 12 months ending in May.
Although its turnover was less than the £104m it earned the previous year, the Cambridge-based group had expected to earn at least £85m.
Eating sprouts: Frontier said high demand for its back catalog games and Planet Zoo: Console Edition helped its revenue total around £89m for the 12 months ending in May.
It also forecast an adjusted profit loss of “£5m or more”, but the company now expects to post a provisional profit of around £500,000.
This figure included the gain from selling the publishing rights to RollerCoaster Tycoon 3 to Atari for $7 million in March, raising much-needed cash for the AIM-listed company.
Since last year, Frontier has focused on ‘creative management simulation’ games, in which players create or manage fictional communities or projects, after attempts to branch out into ‘adjacent genres’ failed.
The company plans to release three CMS games over the next three financial years, including an unannounced IP game and the upcoming Jurassic World game.
Another game launching soon is F1 Manager 2024, the third installment in the official Formula One racing management simulation series.
Jonny Watts, chief executive of Frontier, said: ‘We have started the new financial year reset and refocused, with a clear strategy and sustainable cost base.
“We have a portfolio of games that continues to deliver satisfactory results and an exciting CMS-led roadmap ahead.”
After the announcement, Frontier Developments Stock soared 9.4 per cent to 303p early on Wednesday afternoon, meaning they are up around 180 per cent in the last six months.
For the current year, the group said it was “comfortable” with revenues meeting analyst expectations of £87m and “confident of being able to achieve profitability”.
Frontier was founded in 1994 by David Braben, who later founded the Raspberry Pi Foundation, a UK charity whose commercial arm creates computers that are popular with hobbyist and hobbyist coders.
Raspberry Pi shares soared 42 percent after going public on the London Stock Exchange on Tuesday, representing a significant win for UK markets, which have struggled to attract new listings this year.
Many companies have recently shifted their primary listing to Wall Street in hopes of higher valuations, such as building materials supplier CRH, plumbing products distributor Indivior and Paddy Power owner Flutter Entertainment.