(Alliance News) - Frontier Developments PLC on Wednesday said it expects revenue in the financial year that ended May 31 to be lower than the year prior, as it said it will shift away from third-party publishing towards internal titles.
The Cambridge-based video games developer and publisher said it expects revenue to fall by 8.8% to EUR104 million, in line with its own guidance, from EUR114 million a year ago.
Meanwhile, the company said it completed its review of its Foundry games label for third-party publishing. It explained it will cease all activity relating to buying new third-party titles and re-focus on internal titles, "due to disappointing financial performance and increased competition amongst third-party publishers."
Chief Executive Officer Jonny Watts said: "Our renewed focus is to select, develop, launch and nurture genre-leading games which delight our players and deliver strong financial performance for our investors. I am confident that we will return to growth and profitability through the achievements of our world class team, the performance of our existing game portfolio and the delivery of our exciting pipeline of future releases."
Looking ahead, the company expects to benefit from two "major" new game releases, F1 Manager 2023 and its first real-time strategy game, Warhammer Age of Sigmar: Realms of Ruin.
Frontier Developments shares were down 8.9% to 531.32 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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Frontier Dev (FDEV)