Last checked at 6 Jul 2016 07:00
6 July 2016
Frontier Developments plc
Full year trading update
Frontier Developments plc (AIM: FDEV, "Frontier", the "Group"), a leading developer of video games, announces the following trading update ahead of its results for the year ended 31 May 2016 (FY16).
Summary
Self-published revenue grew year-on-year by 13%, and was over 99% of the Group's total revenue in its first full financial year of self-publishing the Elite Dangerous franchise.
Revenue for the year was £21.3m and the Group expects to report adjusted EBITDA of £6.1m1 and an operating profit of £1.2m. All figures are unaudited.
Frontier's longer-term strategy is to transition to self-publishing multiple revenue generating franchises. Good progress is being made towards that strategic objective with the Group's second franchise, Planet Coaster, due to be launched 4Q 2016.
The number of players of Frontier's games continues to grow:
· The total Elite Dangerous franchise unit sales increased by over 1 million during the year, and are currently around 1.7 million.
· Planet Coaster has exceeded the Board's expectations, with around 34,000 unit sales to date during the Alpha stage of development generating over £1.5m.
The Group expects to report its results in September 2016.
Elite Franchise
Frontier has successfully continued to increase the audience for Elite Dangerous. It was released on Microsoft's Xbox One games console in October 2015, and was a launch title on the two major Virtual Reality systems that made their consumer debut in March 2016, Facebook's Oculus Rift and HTC's Vive.
In addition Elite Dangerous: Horizons, a paid-for 'season pass' of additional content, was launched on PC in December 2015, following which uptake has been building. The release of the lower-priced Elite Dangerous: Arena instant action arena combat offering rounded out the franchise's presence at all main price points.
Post period end, Frontier released Horizons for Microsoft's Xbox One console.
Planet Coaster Franchise
Frontier has started to build an early adopter audience for Planet Coaster, using video and live streams to show early progress on the game, and is successfully fostering a growing community.
The first two Alpha builds were released to early adopter customers in March and May respectively. The Board is pleased with the quality of these early builds and encouraged by the positive feedback received from the community.
Development of Planet Coaster remains on track for a calendar 4Q 2016 launch.
Cash Position
Frontier has invested significantly in developing both the Elite Dangerous and Planet Coaster franchises during the period. However, the Group's balance sheet remains strong and at 31 May 2016 the Group had net cash of approximately £8.6 million.
The Group remains in a strong financial position to support its continuing investment plans going forward.
Outlook
With the anticipated launch of Planet Coaster in calendar 4Q 2016, Frontier has a strong release pipeline for the forthcoming year. The Board have been pleased by the reception of Horizons on Xbox One, and are encouraged by the potential for Planet Coaster.
1 stated before the deduction of £8.9m of capitalised R&D in the period
Enquiries:
Frontier Developments | +44 (0)1223 394 300 |
David Braben, CEO David Walsh, COO Neil Armstrong, CFO |
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Numis - Nomad and Joint Broker | +44 (0)20 7260 1000 |
Simon Willis/Jamie Lillywhite/Toby Adcock |
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Finncap | +44 (0) 207 220 0500 |
Matt Goode/Giles Rolls |
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Tulchan Communications | +44 (0) 207 353 4200 |
James Macey White/Matt Low |
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About Frontier Developments plc
Frontier Developments plc, listed on the AIM stock market (AIM: FDEV), is a leading independent game developer founded in 1994 by David Braben, co-author of the seminal 'Elite' game. Based in Cambridge, Frontier uses its proprietary 'COBRA' game development technology to create innovative games across videogame consoles, computers, smartphones and tablets.
www.frontier.co.uk
Important Note
The information contained in this announcement about the sales of Elite Dangerous and Planet Coaster relates solely to these games and does not constitute a profit estimate or profit forecast in respect of the Group or any guidance as to the likely future profits of the Group.
Notes to Editors
Alpha and Beta are common terms used to describe pre-release versions of software. Alpha releases are typically focused on a limited feature set compared to the final version, whilst Beta releases approach full functionality with some aspects remaining work-in-progress.