REG - Frontier Developmnts - CMS STRATEGY DELIVERS RECORD FINANCIAL RESULTS

Frontier DevelopmentsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260610:nRSJ6263Ha&default-theme=true

RNS Number : 6263H  Frontier Developments PLC  10 June 2026

10 June 2026

Frontier Developments plc

Trading Update

CMS Strategy Delivers Record Financial Results

Frontier Developments plc (AIM: FDEV, 'Frontier', the 'Group' or the
'Company'), a leading Cambridge-based developer and publisher of video games,
focusing on Creative Management Simulation (CMS) games, today provides a
trading update including provisional financial results for the 12 months ended
31 May 2026 ('FY26').

FY26 Financial Summary and Overview

                                                   FY26      FY25     Change   Change %
 Revenue                                           £104.8m   £90.6m   £14.2m   16%
 Adjusted Operating Profit*                        £19.0m    £13.2m   £5.8m    44%
 Cash generation excluding capital transactions**  £18.8m    £12.9m   £5.9m    46%
 Cash balance at 31 May                            £44.0m    £42.5m   £1.5m    4%

The strength of Frontier's CMS strategy delivered record financial performance
in FY26:

·    Adjusted Operating Profit* increased year-on-year by 44% to
approximately £19.0 million (FY25: £13.2 million), beating the previous
record set in FY19 of £15.9 million.

·    Underlying adjusted profit, excluding a £3.9 million gain from the
sale of publishing rights in FY25, more than doubled year-on-year.

·    Cash generation excluding capital transactions** of £18.8 million
(FY25: £12.9 million) surpassed the record performance of £15.8 million
achieved in FY19.

The growth in profit and cash generation reflected strong trading, continued
cost discipline and higher-than-expected tax credits:

·    Revenue increased by 16% to £104.8 million (FY25: £90.6 million),
the second highest in Frontier's history, through a strategic focus on CMS
games, which represented almost 90% of revenue in FY26 (FY25: 77%). The CMS
performance was driven by the successful release of Jurassic World Evolution
3, alongside continued revenue contributions from the Planet Coaster and
Planet Zoo game franchises, and the first two games in the Jurassic World
Evolution series.

·    Careful cost management resulted in only a 3% increase in Gross
Operating Costs*** to approximately £62.4 million (FY25: £60.8 million).

·    Tax credits in FY26 were higher than originally expected, due to
enhancements achieved through the transition to the new Video Games
Expenditure Credits regime compared with the previous system under Video Games
Tax Relief. Whilst some of the benefits were transitory, higher tax credits
are now expected in FY27 and beyond.

Cash increased year-on-year by £1.5 million to £44.0 million (31 May 2025:
£42.5 million). This is despite a total investment of £17.5 million to
acquire Frontier shares:

·    Frontier invested £15.5 million to acquire 3,947,854 shares through
two share buyback programmes, resulting in a 10% reduction in total voting
rights and a corresponding 11% enhancement to earnings per share for FY27 and
beyond.

·    Frontier's Employee Benefit Trust invested £2.0 million to acquire
532,174 shares, which will be used to satisfy the future exercise of share
options by employees.

* Adjusted Operating Profit is a non‑IFRS measure used by Frontier to assess
underlying financial performance. It excludes non‑cash development cost
accounting adjustments (capitalisation, amortisation, and impairment),
non‑cash share-based payment charges, non-operating items such as
restructuring costs, and recognises the full benefit of tax credits and
R&D expenditure credits in the period to which they relate.

** Cash Generation excluding capital transactions is the movement in cash
during the period, adjusted for any cash flows related to share transactions
(such as share buybacks or EBT purchases) and excluding any acquisition
related cash flows.

*** Gross Operating Costs are operating costs as recorded under the
calculation of Adjusted Operating Profit. Tax Credits and Other Operating
Income are excluded in this calculation of costs.

 

Franchise Overview

 

Jurassic World Evolution

Frontier's FY26 game release, Jurassic World Evolution 3, represents the third
instalment in the franchise developed in partnership with Universal Products
& Experiences. Player engagement has been strong, reflected in sustained
playtime, an active community sharing gameplay experiences and user-generated
content, and consistent participation across key player cohorts, supporting a
compelling long-term retention profile.

Since launch, Frontier has successfully executed its proven post-release
strategy. A combination of free updates and paid downloadable content (PDLC)
has enabled players to further expand and customise their parks, sustaining
engagement. On 16 June 2026, a major expansion themed around the Jurassic
World Rebirth film will introduce new content and gameplay features.
Additional content is planned throughout FY27 to further engage the player
base and attract new audiences.

Planet Coaster

The Planet Coaster franchise generated further momentum in FY26, supported by
a steady cadence of updates and content for Planet Coaster 2, leaving it well
positioned for the future. A strong roadmap of new content is in place for
FY27.

Planet Zoo

Planet Zoo, Frontier's most successful game to date, delivered another
excellent performance during FY26, continuing to lead in its genre and engage
with a substantial community of players. Later this year Planet Zoo 2 will
build on the success of its predecessor with enhanced simulation systems,
expanded gameplay depth, and new features, including aquatic and flying
species and global Wildlife Reserves. Planet Zoo 2 is scheduled for release on
13 October 2026 (in H1 FY27) on PC, PlayStation 5 and Xbox Series S|X.

Watch the (https://www.youtube.com/watch?v=G6-yj80Guxg) Planet Zoo 2
(https://www.youtube.com/watch?v=G6-yj80Guxg) Announce Trailer HERE
(https://www.youtube.com/watch?v=G6-yj80Guxg)

Warhammer 40,000: Chaos Gate

The second FY27 release, Warhammer 40,000: Chaos Gate - Deathwatch, was
announced on 21 May 2026 at the Warhammer Skulls showcase. Building on the
critically acclaimed Warhammer 40,000:  Chaos Gate - Daemonhunters, this
sequel places players in command of a customisable Deathwatch Kill Team
drawing from a range of different space marine chapters, as they wage war
against seven enemy factions in a narrative campaign, or test their tactics in
the new Skirmish mode.

Watch the (https://www.youtube.com/watch?v=tjocTbrR_F8) Warhammer 40,000:
Chaos Gate - Deathwatch (https://www.youtube.com/watch?v=tjocTbrR_F8) Announce
Trailer HERE (https://www.youtube.com/watch?v=tjocTbrR_F8)

Elite Dangerous

In the last 18 months the content strategy for Elite Dangerous has been reset
and refreshed, and this has driven further player engagement, resulting in
annual revenue growth in FY26.

A new Planet franchise

Frontier is developing a new own-IP CMS game to create a new Planet franchise
in FY28, building on the success of its Planet Zoo and Planet Coaster
franchises. This new game reinforces Frontier's strategy of delivering one CMS
title per year and supporting long-term, sustainable growth through
high-quality, evergreen game franchises.

Current trading and FY27 outlook

FY27 is expected to start positively, supported by Jurassic World Evolution 3
joining Microsoft's Game Pass subscription service on 2 June 2026, the
upcoming Jurassic World Rebirth expansion on 16 June, and expected portfolio
sales ahead of the summer promotional period.

Alongside continued revenue contributions from existing games, FY27
performance will be driven by the release of Planet Zoo 2 and Warhammer
40,000: Chaos Gate - Deathwatch. The Board has been encouraged by the positive
reception to the announcements of these games and is confident in delivering
FY27 in line with its expectations.

Jo Cooke, Chief Executive Officer, said:

"Thank you so much to our amazing people and our fantastic players for helping
us deliver an excellent FY26, including record financial performance. It's the
result of a stunning turnaround of our business over the last three years
which was driven by my predecessor, Jonny Watts.

We are now set for further success, with three new games scheduled for release
across FY27 and FY28. For FY27 we have two terrific sequels, with Planet Zoo 2
and Warhammer 40,000: Chaos Gate - Deathwatch, and for FY28 we are creating a
new Planet game franchise, continuing our commitment to building and
sustaining world-class CMS games."

Enquiries:

Analysts and investors wishing to join today's 9.30am video call should
contact IR@frontier.co.uk (mailto:IR@frontier.co.uk) .

Sign up for email alerts at www.frontier.co.uk
(http://www.frontier.co.uk/investors) /investors
(http://www.frontier.co.uk/investors)

Frontier Developments

IR@frontier.co.uk (mailto:IR@frontier.co.uk)

+44 (0)1223 394300

 

Peel Hunt - Nomad and Corporate Broker

Neil Patel / Ben Cryer / Kate Bannatyne

+44 (0)20 7418 8900

 

About Frontier Developments plc

Frontier Developments plc is a leading independent developer and publisher of
video games, specialising in creative management simulation (CMS) experiences.
Headquartered in Cambridge, UK, Frontier develops and nurtures globally
successful game franchises, including core CMS franchises such as Planet
Coaster, Planet Zoo, and Jurassic World Evolution, using its proprietary COBRA
technology. The CMS genre underpins Frontier's strategy, which is driving
long-term and sustainable growth through strong player engagement, robust
back-catalogue performance, and an exciting pipeline of new games.

 

Frontier's LEI number: 213800B9LGPWUAZ9GX18.

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBXGDLRGGDGLC



            Copyright 2019 Regulatory News Service, all rights reserved