Frontier Dev Share News (FDEV)

(Alliance News) - Frontier Developments PLC on Wednesday said the ongoing performance of its existing portfolio along with initial contributions from new launches delivered a revenue growth during its first year-half of its financial year.

The Cambridge-based video game developer reported its pretax profit for the six months ended November 30 was GBP6.5 million compared to GBP4.3 million in 2019.

Revenue in the period increased by 15% to GBP36.9 million from GBP32.0 million in the 2019 equivalent period. Frontier said this was driven by continued performance of the four titles Elite Dangerous, Planet Coaster, Jurassic World Evolution and Planet Zoo, including new platform releases for Planet Coaster and Jurassic World Evolution.

Gross profit margin in the period grew to 71% from 67% a year prior. Operating profit margin increased to 19% from 14% through lower average distribution costs, including lower digital store commission rates on some services, and a greater proportion of revenue from own-intellectual property titles versus licenced intellectual property titles, Frontier said.

"Covid has caused a great deal of hardship for many people, but we have been fortunate to benefit from a higher level of demand and engagement for our immersive games during the various lockdowns around the world. I am delighted with the growth achieved in our player communities and in our team during 2020. It's pleasing to see strong engagement across all of our titles during these challenging times for so many people and I am proud of our great team for the adaptability they have shown during remote working," said Chief Executive David Braben.

Looking ahead, Frontier's expectations for financial 2021 remain in-line with the previously guided revenue range of GBP90 million to GBP95 million compared to GBP76.1 million in financial 2020.

"For financial 2022, we anticipate significant growth from the continued strong performance of our existing portfolio alongside contributions from an line‐up of new games," Frontier added.

Shares in Frontier Developments were down 0.9% at 3,240.00 pence in London on Wednesday.

By Zoe Wickens; zoewickens@alliancenews.com

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