Frontier Developments reports record revenue, operating profit

(Sharecast News) - Video games company Frontier Developments reported record full-year revenue of £90.7m in its results on Wednesday, up from £76.1m year-on-year, which it put down to "substantial contributions" from all four of its existing game franchises, together with first revenues from its third-party publishing label Frontier Foundry.
The AIM-traded firm said its "strong" trading performance and portfolio management delivered record operating profit for the 12 months ended 31 May, at £19.9m on an IFRA basis, compared to £16.6m in the 2020 financial year.

It maintained its operating profit margin at 22%, matching the performance it achieved in both the 2020 and 2019 financial years.

Cash balances totalled £42.4m at year-end on 31 May, down slightly from £45.8m a year earlier, even after its investment of £14m in Frontier and Frontier Foundry games during the year, planned for release in future periods.

Based on the anticipated ongoing performance of its existing portfolio, combined with its new release schedule, the board said its projected revenue range for the 2022 financial year was £130m to £150m, implying an annual growth rate of 43% to 65% above the record revenue it reported for 2021.

Looking further ahead, the board's projected revenue range for the 2023 financial year was £160m to £180m, based on the expected performance of its current and future game franchises, together with a growing contribution from Frontier Foundry.

"Our team did a terrific job during the 2021 financial year, creating new content and delivering new platforms for our existing games to support and grow our passionate player communities," said chief executive officer David Braben.

"We were delighted to achieve record financial results in 2021 from our existing portfolio of games franchises.

"Our team has also been busy on our future titles, and we look forward with confidence based on our strong existing portfolio and our exciting roadmap of new releases."

At 1120 BST, shares in Frontier Developments were up 1.51% at 2,695p.