9th Jan 2015 08:18
LONDON (Alliance News) - Frontier Developments PLC said Friday that is hopeful sales of its newly launched 'Elite: Dangerous' title will continue to track well, leading its revenues to double to around GBP19 million by the end of the current financial year.
It expects to post an operating loss of around GBP1.5 million for its first half due to pre-release marketing and infrastructure spend ahead of the release of 'Elite: Dangerous', and earnings before interest, tax, depreciation and amortisation of GBP700,000.
The video game studio said that sales from pre-release versions of 'Elite: Dangerous' in the half year to end November are expected to contribute around GBP7.0 million in revenues, which Frontier said is a 40% increase compared to the prior half year.
Frontier launched a full public release of 'Elite: Dangerous' on December 16 last year, and said that sales have been "encouraging."
It has developed three scenarios to model its performance of the game, based on growth of other non-subscription online games in their first three years, and said that presently in terms of revenue the game is tracking above the highest scenario, and in terms of units sold between the middle and highest scenarios.
Frontier said its balance sheet remains strong, and ahead of the release of Elite: Dangerous, it had net cash of GBP9.8 million.
It expects to announce its half year results in late February.
Shares in Frontier Developments are trading up 11.7% at 234.50 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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