LONDON (Alliance News) - Video game developer Frontier Developments PLC on Wednesday reported a swing to pretax profit for its first half, helped by continued growth of its flagship 'Elite Dangerous' franchise.
For the half year to end-November the company reported a pretax profit of GBP440,000, swung from a pretax loss of GBP1.9 million a year before, as revenue rose to GBP10.9 million from GBP7.3 million and research and development costs were lower.
The company has been shifting over the past few years towards becoming a self-publishing company focused on its own franchises, and is currently concentrating on two main franchises, 'Elite Dangerous' and its upcoming 'Planet Coaster' title.
The company said it had sold 1.2 million units of 'Elite Dangerous' franchise games at the end of the half year, helped by a better-than-expected run up to Christmas and a boost from a Black Friday sale.
"We are making good progress through our transition. All our development teams are now working on self-published projects, and with the release of Planet Coaster in calendar Q4 2016, our investment phase will complete and we will be generating revenues from both our major franchises. We remain in a good cash position and were profitable in the half year," said Chief Executive David Braben in a statement.
Shares in Frontier Developments were up 4.6% at 207.50 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Frontier Dev (FDEV)