Frontier Dev Share News (FDEV)

(Sharecast News) - Frontier Developments upgraded its full-year revenue and profit expectations on Tuesday, citing the success of Jurassic World Evolution 3, stronger sales across its wider games portfolio and continued cost discipline.

The AIM-traded, Cambridge-based video game developer and publisher said it now expected revenue for the year ending 31 May to be about £103m, ahead of previous guidance.

It said cumulative sales revenue for Jurassic World Evolution 3 was ahead of Jurassic World Evolution 2 over an equivalent post-launch period, helped by the release of new content.

Frontier said delays outside its control had affected the release of further content for the game over the last month, but added that it was working to resolve the issues and return to its planned content roadmap.

The board now expects adjusted operating profit of about £16m, significantly ahead of previous guidance.

Frontier said the upgrade reflected higher-than-expected tax credits following its transition from the Video Games Tax Relief regime to Video Games Expenditure Credits, as well as stronger revenue performance and ongoing cost control.

The company said it remained highly cash generative, with cash rising to £44.9m at the end of April from £42.5m at 31 May 2025, despite investing £15.4m in share buyback programmes during the period.

Excluding buybacks, operating cash inflow for the 11 months to date was £17.8m.

Frontier bought back 3,947,854 shares during the period through two programmes, reducing total voting rights by 10% and delivering an expected 11% enhancement to earnings per share for the 2027 financial year and beyond.

Chief executive officer Jo Cooke said she was "delighted" with Frontier's performance in the 2026 financial year.

"The success of Jurassic World Evolution 3 and the enduring appeal of our games underline the creativity of our teams and the depth of talent across the studio," she said.

"Since stepping into the CEO role earlier this year, I have been encouraged by the strength of our established CMS portfolio and the clarity of our long-term strategy as we continue to build enduring relationships with our players."

Frontier said it expected to provide a post-year-end trading update on 10 June.

At 1317 BST, shares in Frontier Developments were up 17.15% at 386p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate