Hi everyone,
The above line uttered, of course, by the late, great Bob Peck playing Robert Muldoon in the original Jurassic Park, referring of course to the Raptors!
What are currently being 'destroyed', are analysts previous forecasts....specifically EPS (63% beat); Adj net income (71% beat). I say that, with a wry smile, as of course a one off £0.7M tax credit helped the former, but I was also pleasantly surprised to see a 9% reduction in the cost of R&D & cash on the balance sheet up to £24.1M.
What will peak investors interests, are the comments from Mr Braben. Specifically, we now know the next franchise will be their own IP. This is very interesting, and the rumour mill will be swirling as to what this will be. We are told:
we'll be making a number of exciting announcements about each franchise in due course
Frontier Expo was held in October last year, and perhaps, could come late this year (although not announced) this would give an opportunity for the new franchise to be announced.
We're also guided as to FY19:
Although it is still early in terms of both Frontier's financial year and the life-cycle of Jurassic World Evolution, the Board is comfortable with the current range of analyst revenue projections of £75 million to £88 million for FY19 (the year ending 31 May 2019)
What I find most interesting is a comment from Mr Braben around the model they are choosing to take. I believe Frontier are right in their assertions, and this is already starting to happen in the gaming world. He called it 'games as a service'.
Our chosen model - supporting our games and their communities with regular updates, essentially 'games as a service' - is working very well, producing three out of three successful franchises so far, but we will continue to monitor and consider different options as the industry continues to evolve.
This is starting to happen everywhere (For example: Battlefield V will have maps that 'evolve' similar to Fortnite), and not only have Frontier Developments (LON:FDEV) recognised this, but are making it a key strategic priority.
Something that Frontier have shown they are good at is creating persistent, living worlds. They don't merely create a static game…
