Frontier Dev Share News (FDEV)

LONDON (Alliance News) - Frontier Developments PLC on Wednesday said it has a strong release pipeline for the forthcoming year, but expects to post a fall in revenue for its full year, as it transitions its business towards self-publishing franchises.

The video game developer said it expects to post revenue of GBP21.3 million for the year ended May 31, having posted GBP22.8 million revenue a year earlier, and said it expects an operating profit of GBP1.2 million, down from the GBP1.6 million reported a year earlier.

Frontier Development said its self-published revenue grew year-on-year by 13% and was 99% of the group's total revenue, in the first full financial year of self-publishing the Elite Dangerous franchise. A year earlier, its self-publishing franchises made up 84% of revenue.

Frontier Developments said its longer-term strategy is to transition to self-publishing multiple revenue-generating franchises and said good progress was being made towards this aim, with its second franchise to be launched later on in 2016.

Frontier Developments said the number of players using its games continued to grow, with Elite Dangerous unit sales up by more than 1.0 million during the year, and currently at around 1.7 million. Meanwhile its Planet Coaster game has "exceeded the board's expectations", with around 34,000 unit sales to date during the alpha stage of development, generating more than GBP1.5 million.

"With the anticipated launch of Planet Coaster in the fourth quarter of calendar 2016, Frontier has a strong release pipeline for the forthcoming year. The board have been pleased by the reception of Horizons on Xbox One, and are encouraged by the potential for Planet Coaster," the company said in a statement.

Shares in Frontier Developments were up 4.1% at 190.00 pence on Wednesday.

By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland

Copyright 2016 Alliance News Limited. All Rights Reserved.