REG - Frontier Developmnts - Trading Update

Frontier DevelopmentsAnnouncement

07/05/2024 07:15

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RNS Number : 3364N  Frontier Developments PLC  07 May 2024

7 May 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Frontier Developments plc

Trading Update

Frontier Developments plc (AIM: FDEV, 'Frontier', the 'Group' or the
'Company'), a leading developer and publisher of videogames based in
Cambridge, UK, provides an update on trading for Frontier's financial year
2024 ('FY24'), the 12 months to 31 May 2024.

Since the last trading update on 2 April 2024, Frontier's portfolio has
performed well, with pleasing contributions from all games. CMS titles have
performed particularly well, in part due to a strong Frontier publisher sale
on leading PC channel Steam from 1 to 15 April. On consoles, Planet Zoo:
Console Edition continued to sell well during April following its successful
release in March.

Following these strong performances across the whole portfolio in April, the
Board currently project revenue for FY24 of at least £85 million.

Frontier's financial performance for FY24 as measured by Adjusted EBITDA* is
now anticipated to be better than previously guided, based on a higher gross
margin percentage from a greater proportion of own-IP revenue, lower operating
costs following the completion of the Organisational Review, and the gain from
the sale of the RollerCoaster Tycoon 3 publishing rights to Atari as announced
on 2 April 2024. Based on revenue of at least £85 million, the Board
anticipates an Adjusted EBITDA* loss for FY24 of £5 million or better. Under
IFRS accounting standards, the sale of publishing rights to Atari is treated
as 'other operating income' rather than 'revenue', but it does contribute to
Adjusted EBITDA.

The Board expects to provide a further update on the outturn for the financial
year in June 2024.

*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation
and impairment charges related to game developments and game technology, less
investments in game developments and game technology, and excluding
restructuring costs, share-based payment charges and other non-cash items.

Jonny Watts, Chief Executive Officer, said:

"I am pleased to announce that our expectations for our financial performance
in the current financial year have improved following the excellent reception
to Planet Zoo's arrival on console and a good ongoing performance from our
other CMS titles.  We are making strong progress following the reset of our
strategy during 2023 and I'd like to thank our people for their support during
a difficult period in Frontier's thirty year history. We look to the future
with renewed confidence."

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. The person responsible for making this announcement on
behalf of the Company is Alex Bevis.

Enquiries:

 

Frontier Developments   +44 (0)1223 394 300

Jonny Watts, CEO

Alex Bevis, CFO

 

Peel Hunt - Nomad and Corporate Broker   +44 (0)20 3100 2000

Neil Patel / Paul Gillam / Kate Bannatyne

 

Liberum - Joint Corporate Broker   +44 (0)20 3100 2000

Max Jones / Nikhil Varghese

 

Teneo   +44 (0)20 7353 4200

Matt Low / Arthur
Rogers

 

About Frontier Developments plc

Frontier is a leading independent developer and publisher of videogames
founded in 1994 by David Braben, co-author of the iconic Elite game. Frontier
uses its proprietary COBRA game development technology to create innovative
genre-leading games, primarily for personal computers and videogame consoles.

Frontier's LEI number: 213800B9LGPWUAZ9GX18.

 

www.frontier.co.uk (http://www.frontier.co.uk/)

 

 

 

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