(Alliance News) - Frontier Developments PLC shares rose on Tuesday after it backed its outlook and said it will cut jobs to reduce operating costs.
Shares in the Cambridge-based video games developer and publisher closed up 19% to 230.00 pence each in London on Tuesday.
During 2023, Frontier redefined its strategy to "refocus on its core strengths following a period of disappointing financial performance and more challenging industry conditions."
On Tuesday, the company announced an organisational review. It said that this would "reshape Frontier to deliver on that updated strategic plan more efficiently, return the company to profit, and create a sustainable foundation for the future."
It noted that the review will deliver enhancements to Frontier's leadership and structure, drive efficiencies across the company and achieve a reduction in annual operating costs of up to 20%. The cost reductions will be achieved through a recruitment freeze, spending cuts and redundancies.
The review and resulting actions are expected to conclude by early 2024.
Also on Tuesday, Frontier issued a trading update.
It said its existing game portfolio continues to perform in line with expectations, which will include the release of Warhammer Age of Sigmar: Realms of Ruin, Black Friday, and Christmas.
Frontier said it "looks forward" to the important November and December trading period.
It added that it remains comfortable with market expectations for financial 2024, with consensus revenue at GBP108 million and consensus adjusted loss before interest, tax, depreciation and amortisation of GBP9 million.
In financial 2023, it reported revenue of GBP104.6 million and Ebitda loss of GBP4.6 million.
By Sophie Rose, Alliance News reporter
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Frontier Dev (FDEV)