11th Jun 2025 12:11
(Alliance News) - Frontier Developments PLC on Wednesday hailed "increased momentum" in trading as it set out its expected results for the financial year that ended May 31.
The Cambridge, England-based video game developer estimated GBP90.6 million revenue for financial 2025, up 1.5% from GBP89.3 million in financial 2024.
Revenue in the Creative Management Simulation division led the charge, rising 25% above the previous year. Three of the division's game franchises - Planet Coaster, Planet Zoo and Jurassic World Evolution - accounted for 77% of the firm's total revenue, compared to 62% the year prior.
Adjusted earnings before interest, tax, depreciation and amortisation is estimated between GBP8 million to GBP9 million, far exceeding the GBP900,000 target set for the previous year. Frontier Developments singled out a GBP3.5 million boost from the sale of the game 'Stranded: Alien Dawn' back in May.
Tax credits and strong trading also supported the firm's cash position, which was GBP42.5 million at May 31, up from GBP29.5 million a year before.
Frontier Developments is anticipating further growth in the year ahead, it said, as it anticipates the release of third instalment in its Jurassic World franchise.
"We begin the new financial year with renewed confidence, a portfolio of games that continues to deliver, and an exciting roadmap of future games and content," commented Chief Executive Jonny Watts.
In light of 2025's stronger-than-expected trading, the firm said it will execute share buybacks of up to GBP10 million, subject to a shareholder vote at its general meeting on June 27.
Additionally, Frontier Developments is establishing an executive board, effective from June, to focus on streamlining and report back to the board of directors. Chief Operating Officer James Dixon has stepped down from the board of directors as of Thursday in order to chair the new executive board.
The company noted that it will replace the adjusted Ebitda metric with a new measure, adjusted operating profit, from financial 2026. This will exclude non-cash development costs and non-operating items, as well as reflecting "the full benefits of tax credits and reliefs", Frontier Developments said.
It predicted adjusted operating profit for financial 2025 of between GBP11 million and GBP12 million, compared to GBP4.1 million in financial 2024.
Frontier Developments' pretax loss in financial 2024 was GBP28.4 million, widened from GBP26.5 million.
The company's shares rose 9.8% to 296.50 pence each on Wednesday morning in London.
By Holly Munks, Alliance News reporter
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