RNS Number : 7795O
Frontier Developments PLC
14 January 2026
14 January 2026
Interim Results
Excellent H1 Results and outlook for full year upgraded
Frontier Developments plc (AIM: FDEV, 'Frontier', the 'Group' or the 'Company'), a leading developer and publisher of video games based in Cambridge, UK, publishes its unaudited interim results for the 6 months to 30 November 2025 ('H1 FY26' or the 'Period').
FINANCIAL SUMMARY & HEADLINES
H1 FY26 (6 months to 30 November 2025)
H1 FY25 (6 months to 30 November 2024)
H1 to H1 Increase
H1 to H1 Increase %
Revenue
£59.6m
£47.3m
£12.3m
+26%
Adjusted Operating Profit*
£9.7m
£5.5m
£4.2m
+76%
IFRS Operating Profit
£7.8m
£4.5m
£3.3m
+73%
Cash balance at period end
£40.1m
£27.2m
£12.9m
+47%
· Highly positive player responses to new game Jurassic World Evolution 3 helped deliver H1 revenue growth of 26% and an increase in Adjusted Operating Profit* of 76%.
· Following the growth achieved in H1 and a strong seasonal sales performance entering H2, we raise our FY26 financial guidance to revenue of around £100 million and Adjusted Operating Profit* of around £11 million.
· Planet Zoo has become Frontier's highest grossing individual game by revenue, providing a solid foundation for release of a sequel, and for Frontier's overall performance, in FY27.
* Adjusted Operating Profit measures Frontier's financial performance after eliminating non-cash development cost accounting adjustments (cost capitalisation, amortisation charges and impairment charges), non-cash share charges, non-operating items (including restructuring costs), and after recording the full benefits of tax and R&D expenditure credits against the expenditure they relate to.
H1 FRANCHISE UPDATES - THE CMS STRATEGY IS DELIVERING
Revenue from Frontier's genre-leading creative management simulation ('CMS') games increased 52% versus the comparative period, delivering 90% of total revenue in H1 FY26 (H1 FY25: 75%), driven by October's release of Jurassic World Evolution 3, which earned nominations at the Game Awards 2025 and the BAFTA Games Awards 2026.
Inspired by the Universal Pictures and Amblin Entertainment films, Jurassic World Evolution 3 continues to connect with new players. After the end of the Period, Jurassic World Evolution 3 achieved an excellent sales performance in December, including a Frontier Christmas Day sales record for an individual game, to start the second half of the financial year strongly.
The success of Jurassic World Evolution 3 underscores the enduring strength and scalability of the CMS model, and Frontier's ability to deliver compelling games for its player communities. Alongside the success of the new game, the Jurassic World Evolution game franchise benefitted in H1 from strong sales of Jurassic World Evolution 2 during summer promotions, and ongoing sales of Jurassic World Evolution.
H1 sales for the Planet Coaster franchise were slightly ahead of expectations, building on proactive community engagement and new content for Planet Coaster 2, including the Sorcery Pack and free updates. With the Toybox Pack launching post-period end in December to positive reception, the franchise is well positioned for long-term performance.
Planet Zoo delivered an excellent revenue contribution in H1, becoming Frontier's highest grossing individual game by revenue, as it continues to lead in its genre and engage with a substantial community of players. This bodes well for its sequel, coming in FY27.
Development is progressing well on the unannounced CMS title scheduled for release in FY28, further strengthening the portfolio and support Frontier's strategy of delivering high-quality, evergreen franchises.
Outside CMS, the ever-evolving Elite Dangerous space simulation game delivered revenue growth of over 50% versus the comparative period, driven by new content, ships, and sustained player engagement. Meanwhile, Frontier's team in Canada, Complex Games, are on track with the development of an unannounced game, which is scheduled for release in FY27.
CEO APPOINTMENT - A SMOOTH TRANSITION
As first announced on 16 December 2025, Jonny Watts, who served as CEO from August 2022 and led Frontier's successful turnaround and strategic refocus on CMS games, formally stepped down as CEO on 1 January 2026. Jo Cooke, previously Chief Marketing Officer, assumed the CEO position and joined the Board on the same date, bringing extensive industry experience and having played a key role in the successful launch of Jurassic World Evolution 3. Jonny will remain on the Board as an Executive Director until 31 May 2026 to support a smooth transition.
TRADING AND OUTLOOK - GUIDANCE UPGRADE
After the end of the Period, strong sales across the portfolio in seasonal price promotions delivered Frontier's second highest-ever December revenue. Based on Frontier's financial performance in the first seven months of the financial year, the Board are now upgrading FY26 financial guidance to revenue of around £100 million and Adjusted Operating Profit* of around £11 million.
Jonny Watts, Executive Director and outgoing CEO, said:
"I'm incredibly proud of what Frontier has achieved in the first half of FY26 and in recent years. The success of Jurassic World Evolution 3 and the strength of our CMS portfolio are a testament to the talent and dedication of our team. I am delighted that we have successfully restored Frontier to a position of consistent, sustainable growth and profitability. Frontier is well placed for the future, and I look forward to supporting Jo and the team through this transition."
Jo Cooke, incoming CEO, said:
"As we look ahead, Frontier is in an excellent shape to build on the strong foundations established in recent years. I again want to thank Jonny for his leadership and the pivotal role he played in shaping our strategy and restoring growth. Jonny's efforts have left the business and our CMS-focused roadmap in a fantastic place for the future. With a talented team and a robust pipeline of exciting new games and additional content for existing games, we remain committed to this strategy, listening to our players and delivering exceptional experiences to them and long-term value for our shareholders."
There will be a call for analysts and institutional investors at 9:30am today. To register, please contact frontier@teneo.com.
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
Jo Cooke, CEO
Alex Bevis, CFO
Peel Hunt - Nomad and Joint Corporate Broker +44 (0)20 7418 8900
Neil Patel / Ben Cryer / Kate Bannatyne
Panmure Liberum - Joint Corporate Broker +44 (0)20 3100 2000
Rupert Dearden / Dru Danford / Jamie Anderson
Teneo +44 (0)20 7353 4200
Matt Low / Arthur Rogers
About Frontier Developments plc
Frontier is a leading independent developer and publisher of video games founded in 1994 by David Braben, co-author of the iconic Elite game. Based in Cambridge, 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
Interim Results Statement
REVENUE AND GROSS PROFIT
Total revenue grew 26% to £59.6 million (H1 FY25: £47.3 million), led by the outstanding performance of Jurassic World Evolution 3 and supported by the continued sales of Frontier's other genre-leading games.
Gross profit, being revenue less distribution costs and IP royalties, grew to £38.0 million (H1 FY25: £32.9 million), reflecting the growth in revenue. Gross profit margin reduced to 64% (H1 FY25: 70%), primarily due to the success of Jurassic World Evolution 3, which increased the proportion of revenue from royalty-bearing licensed-IP games.
OPERATING COSTS
Adjusted operating costs, under the Adjusted Operating Profit* measure, increased slightly to £28.6 million (H1 FY25: £27.4 million), through the accrual of higher all-staff profit-related bonuses, which are due for payment in September 2026 based on profit for the full financial year. H1 profit grew by over 70% compared to H1 FY25.
Operating costs under IFRS also increased slightly to £30.5 million (H1 FY25: £28.4 million), with the all-staff bonus accrual again being a contributory factor. Another reason for the increase was a fall in the proportion of development costs capitalised under IAS 38 to 69% (H1 FY25: 76%). This reflected the investment in free updates and upgrades for Planet Coaster 2 delivered in the Period, the costs of which are not capitalised.
FINANCIAL PERFORMANCE
Adjusted Operating Profit*, which reflects cash profitability with game development costs expensed as they are incurred, grew by 76% to £9.7 million (H1 FY25: £5.5 million) through the strong trading performance achieved in the Period. Operating profit also increased substantially under IFRS, up 73% to £7.8 million (H1 FY25: £4.5 million).
Included in both Adjusted Operating Profit* and IFRS operating profit is other operating income of £0.3 million (H1 FY25: nil), which relates to the sublet from July 2025 of a portion of Frontier's office on the Cambridge Science Park.
CORPORATION TAX, TAX CREDITS AND R&D EXPENDITURE CREDITS
In arriving at the calculation of Adjusted Operating Profit*, a tax credit of £2.9 million has been recognised (H1 FY25: £3.4 million), which aligns the expected benefits of tax and R&D expenditure credits against the expenditure they relate to, in the period of the expenditure.
Under IFRS, accounting an income tax credit of £27,000 was recognised in the Period (H1 FY25: £nil) for tax filings in Canada (Complex Games). As in previous years, an update will be provided in the full-year financial results in respect of the anticipated Video Games Tax Relief claim for qualifying development activities and the tax charge for the Group. Additional corporation tax disclosures will be provided in the FY26 Financial Statements.
PROFIT AFTER TAX AND EARNINGS PER SHARE
Profit after tax grew to £8.0 million (H1 FY25: £4.4 million) and basic earnings per share grew to 21.4 pence (H1 FY25: 11.4 pence).
CASH POSITION AND CASHFLOW
Frontier continues to be well capitalised and has no debt, with a cash balance of £40.1 million at 30 November 2025 (31 May 2025: £42.5 million, 30 November 2024: £27.2 million). During the Period Frontier undertook a £10.0 million share buyback programme to return surplus capital to shareholders, improve return on equity and increase earnings per share, while maintaining the financial headroom to invest in Frontier's growth strategy. Excluding the cash outflow of £10.0 million for the share buyback, underlying cash grew by £7.6 million through the strong trading performance achieved in the Period. Cash grew further during December through the receipt of November's net revenue, ending at £43.4 million on 31 December 2025.
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 NOVEMBER 2025
Note
6 months to 30 November 2025 £'000
6 months to 30 November 2024 £'000
12 months to 31 May 2025 £'000
Revenue
59,629
47,291
90,600
Cost of sales
(21,633)
(14,388)
(27,257)
Gross profit
37,996
32,903
63,343
Research and development expenses
(17,356)
(16,294)
(31,971)
Sales and marketing expenses
(4,869)
(5,036)
(7,710)
Administrative expenses
(8,290)
(7,030)
(14,921)
Other operating income
334
-
3,910
Operating profit
7,815
4,543
12,651
Finance income
649
386
800
Finance costs
(479)
(531)
(1,032)
Profit before tax
7,985
4,398
12,419
Income tax credit
27
-
3,968
Profit for the period attributable to shareholders
8,012
4,398
16,387
6 months to 30 November 2025 p
6 months to 30 November 2024 p
12 months to 31 May 2025 p
Earnings per share
Basic earnings per share
5
21.4
11.4
42.4
Diluted earnings per share
5
20.2
11.1
40.7
All the activities of the Group are classified as continuing.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 NOVEMBER 2025
6 months to 30 November 2025 £'000
6 months to 30 November 2024 £'000
12 months to 31 May 2025 £'000
Profit for the period
8,012
4,398
16,387
Other comprehensive income Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
(3)
(199)
(534)
Total comprehensive income for the period attributable to the equity holders of the parent
8,009
4,199
15,853
The accompanying accounting policies and notes form part of this financial information.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2025
(REGISTERED COMPANY NO: 02892559)
Note
30 November 2025 £'000
30 November 2024 £'000
31 May 2025 £'000
Non-current assets
Goodwill
6,539
6,781
6,539
Other intangible assets
6
43,261
37,370
41,971
Property, plant and equipment
3,492
4,291
3,810
Right-of-use assets
16,542
18,625
17,548
Trade and other receivables
868
-
1,105
Total non-current assets
70,702
67,067
70,973
Current assets
Trade and other receivables
20,906
18,684
12,290
Current tax assets
4,868
7,207
4,928
Cash and cash equivalents
40,113
27,241
42,502
Total current assets
65,887
53,132
59,720
Total assets
136,589
120,199
130,693
Current liabilities
Trade and other payables
(17,725)
(12,251)
(10,418)
Lease liabilities
(1,871)
(1,801)
(1,823)
Deferred revenue
(2,696)
(3,429)
(1,486)
Deferred income from R&D expenditure credits
(957)
-
(955)
Current tax liabilities
(20)
-
(276)
Total current liabilities
(23,269)
(17,481)
(14,958)
Net current assets
42,618
35,651
44,762
Non-current liabilities
Provisions
(107)
(92)
(100)
Lease liabilities
(16,693)
(18,609)
(17,644)
Other payables
(197)
(671)
(635)
Deferred revenue
-
(591)
-
Deferred income from R&D expenditure credits
(1,165)
-
(1,204)
Deferred tax liabilities
(990)
(381)
(990)
Total non-current liabilities
(19,152)
(20,344)
(20,573)
Total liabilities
(42,421)
(37,825)
(35,531)
Net assets
94,168
82,374
95,162
Equity
Share capital
197
197
197
Share premium account
36,547
36,547
36,547
Treasury shares
(10,180)
-
-
Equity reserve
(13,486)
(13,612)
(12,955)
Foreign exchange reserve
(1,410)
(1,072)
(1,407)
Retained earnings
82,500
60,314
72,780
Total equity
94,168
82,374
95,162
The accompanying accounting policies and notes form part of this financial information.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 NOVEMBER 2025
Share capital £'000
Share premium account £'000
Treasury shares £'000
Equity reserve £'000
Foreign exchange reserve £'000
Retained earnings £'000
Total equity £'000
At 31 May 2024
197
36,547
-
(13,283)
(873)
54,235
76,823
Profit for the period
-
-
-
-
-
4,398
4,398
Other comprehensive income:
Exchange differences on translation of foreign operations
-
-
-
-
(199)
-
(199)
Total comprehensive income/(loss) for the period
-
-
-
-
(199)
4,398
4,199
Share-based payment charges
-
-
-
1,248
-
-
1,248
Share-based payment transfer relating to option exercises and lapses
-
-
-
(1,681)
-
1,681
-
Employee Benefit Trust cash inflows from option exercises
-
-
-
104
-
-
104
Transactions with owners
-
-
-
(329)
-
1,681
1,352
At 30 November 2024
197
36,547
-
(13,612)
(1,072)
60,314
82,374
Profit for the period
-
-
-
-
-
11,989
11,989
Other comprehensive income:
Exchange differences on translation of foreign operations
-
-
-
-
(335)
-
(335)
Total comprehensive income/(loss) for the period
-
-
-
-
(335)
11,989
11,654
Share-based payment charges
-
-
-
1,120
-
1,120
Share-based payment transfer relating to option exercises and lapses
-
-
-
(477)
-
477
-
Employee Benefit Trust cash inflows from option exercises
-
-
-
14
-
-
14
Transactions with owners
-
-
-
657
-
477
1,134
At 31 May 2025
197
36,547
-
(12,955)
(1,407)
72,780
95,162
Profit for the period
-
-
-
-
-
8,012
8,012
Other comprehensive income:
Exchange differences on translation of foreign operations
-
-
-
-
(3)
-
(3)
Total comprehensive income/(loss) for the period
-
-
-
-
(3)
8,012
8,009
Share-based payment charges
-
-
-
1,106
-
-
1,106
Share-based payment transfer relating to option exercises and lapses
-
-
-
(1,708)
-
1,708
-
Employee Benefit Trust cash inflows from option exercises
-
-
-
71
-
-
71
Purchase of treasury shares
-
-
(10,180)
-
-
-
(10,180)
Transactions with owners
-
-
(10,180)
(531)
-
1,708
(9,003)
At 30 November 2025
197
36,547
(10,180)
(13,486)
(1,410)
82,500
94,168
The accompanying accounting policies and notes form part of this financial information.
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE PERIOD ENDED 30 NOVEMBER 2025
6 months to 30 November 2025 £'000
6 months to 30 November 2024 £'000
12 months to 31 May 2025 £'000
Profit before taxation
7,985
4,398
12,419
Adjustments for:
Depreciation and amortisation
13,652
12,874
23,435
Movement in unrealised exchange gains on forward contracts
-
611
-
Share-based payment expenses
1,106
1,248
2,368
Interest received
(649)
(386)
(800)
Payment of interest element of lease liabilities
479
531
1,032
Other operating income
-
-
(3,910)
Working capital changes:
Change in trade and other receivables
(8,625)
(5,373)
1,466
Change in trade and other payables
7,078
300
635
Change in deferred revenue
1,210
-
(3,121)
Change in deferred income from R&D expenditure credits
(37)
-
2,159
Change in provisions
7
7
15
Cash generated from operations
22,206
14,210
35,698
Taxes (paid)/received
(170)
-
5,808
Net cashflows from operating activities
22,036
14,210
41,506
Investing activities
Purchase of property, plant and equipment
(150)
(229)
(341)
Expenditure on other intangible assets
(13,675)
(15,576)
(30,370)
Sale of publishing rights
246
195
4,005
Interest received
649
386
800
Net cashflows used in investing activities
(12,930)
(15,224)
(25,906)
Financing activities
Employee Benefit Trust cash inflows from option exercises
71
104
118
Payment of principal element of lease liabilities
(903)
(854)
(1,726)
Payment of interest element of lease liabilities
(479)
(531)
(1,032)
Purchase of treasury shares
(10,180)
-
-
Net cashflows used in financing activities
(11,491)
(1,281)
(2,640)
Net change in cash and cash equivalents from continuing operations
(2,385)
(2,295)
12,960
Cash and cash equivalents at beginning of period
42,502
29,523
29,523
Exchange differences on cash and cash equivalents
(4)
13
19
Cash and cash equivalents at end of period
40,113
27,241
42,502
The accompanying accounting policies and notes form part of this financial information.
NOTES TO THE FINANCIAL INFORMATION
1. CORPORATE INFORMATION
Frontier Developments plc (the 'Group' or the 'Company') develops and publishes video games for the interactive entertainment sector. The Company is a public limited company and is incorporated and domiciled in the United Kingdom.
The address of its registered office is 26 Science Park, Milton Road, Cambridge CB4 0FP.
The Group's operations are based and headquartered in the UK, with subsidiaries based in Canada and the US.
2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
Basis of preparation
The consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' (IAS 34), as issued by the International Accounting Standards Board (IASB) and as adopted by the UK, and the disclosure requirements of the Listing Rules.
The consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006 and have not been audited or reviewed by the Company's auditors.
The consolidated interim financial statements should be read in conjunction with the financial statements for the year ended 31 May 2025.
Statutory accounts for the year ended 31 May 2025 were approved by the Board of Directors on 9 September 2025 and delivered to the Registrar of Companies. The Auditor's Report was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
The financial information has been prepared under the historical cost convention except for financial instruments held at fair value. The financial information is presented in Sterling, the presentation and functional currency for the Group and Company. All values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.
Going concern basis
The Group's and Company's forecasts and projections, taking account of current cash resources and reasonably possible changes in trading performance, support the conclusion that there is a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for a period of not less than 12 months from the date of the consolidated interim financial statements. The Group and Company therefore continue to adopt the going concern basis in preparing their financial statements.
3. ACCOUNTING POLICIES
The consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the year ended 31 May 2025.
4. ACCOUNTING ESTIMATES AND KEY JUDGEMENTS
When preparing the consolidated interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurements of assets, liabilities, income and expenses. The actual results may differ from these estimates.
The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual financial statements for the year ended 31 May 2025.
5. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Frontier Developments plc divided by the weighted average number of shares in issue during the Period, excluding shares held in treasury.
During the Period Frontier executed a share buyback programme of £10 million, acquiring 2,518,527 shares which were placed into treasury. As at 30 November 2025, there were 39,478,535 shares in issue, including the shares held in treasury. The total number of voting rights in the Company as at 30 November was therefore 36,960,008.
6 months to 30 November 2025
6 months to 30 November 2024
12 months to 31 May 2025
Profit attributable to shareholders (£'000)
8,012
4,398
16,387
Weighted average number of shares
37,439,862
38,649,551
38,658,275
Basic earnings per share (p)
21.4
11.4
42.4
The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Frontier Developments plc divided by the weighted average number of shares in issue during the Period, excluding shares held in treasury, and as adjusted for the dilutive effect of share options.
6 months to 30 November 2025
6 months to 30 November 2024
12 months to 31 May 2025
Profit attributable to shareholders (£'000)
8,012
4,398
16,387
Diluted weighted average number of shares
39,640,870
39,759,771
40,265,330
Diluted earnings per share (p)
20.2
11.1
40.7
The reconciliation of the average number of Ordinary Shares used for basic and diluted earnings per share is as follows:
6 months to 30 November 2025
6 months to 30 November 2024
12 months to 31 May 2025
Weighted average number of shares
37,439,862
38,649,551
38,658,275
Dilutive effect of share options
2,201,008
1,110,220
1,607,055
Diluted average number of shares
39,640,870
39,759,771
40,265,330
6. OTHER INTANGIBLE ASSETS
Game technology £'000
Game developments £'000
Third-party software £'000
IP licences £'000
Total £'000
Cost
At 31 May 2024
27,740
188,508
3,312
13,024
232,584
Additions
2,498
12,103
204
-
14,805
Disposals
-
-
-
(1,915)
(1,915)
Exchange rate movement
-
(143)
(1)
-
(144)
At 30 November 2024
30,238
200,468
3,515
11,109
245,330
Additions
2,526
11,152
72
-
13,750
Disposals
-
(5,841)
-
(1)
(5,842)
Exchange rate movement
-
(263)
(2)
-
(265)
At 31 May 2025
32,764
205,516
3,585
11,108
252,973
Additions
2,176
11,119
171
-
13,466
Exchange rate movement
-
5
-
-
5
At 30 November 2025
34,940
216,640
3,756
11,108
266,444
Amortisation and impairment
At 31 May 2024
19,975
165,066
2,572
9,269
196,882
Amortisation charges
1,788
9,156
237
-
11,181
Exchange rate movement
-
(102)
(1)
-
(103)
At 30 November 2024
21,763
174,120
2,808
9,269
207,960
Amortisation charges
1,789
6,944
235
-
8,968
Disposals
-
(5,769)
-
-
(5,769)
Exchange rate movement
-
(155)
(2)
-
(157)
At 31 May 2025
23,552
175,140
3,041
9,269
211,002
Amortisation charges
2,172
9,001
216
792
12,181
At 30 November 2025
25,724
184,141
3,257
10,061
223,183
Net book value
Net book value at 30 November 2025
9,216
32,499
499
1,047
43,261
Net book value at 31 May 2025
9,212
30,376
544
1,839
41,971
Net book value at 30 November 2024
8,475
26,348
707
1,840
37,370
Net book value at 31 May 2024
7,765
23,442
740
3,755
35,702
7. KEY PERFORMANCE INDICATORS - NON-STATUTORY MEASURES
In addition to measures of financial performance derived from IFRS-reported results - revenue, operating profit, operating profit margin percentage, earnings per share, and cash balance - we have published and provided commentary on financial performance measurements derived from non-statutory calculations. We believe these supplementary measures, when read in conjunction with the measures derived directly from statutory financial reporting, provide a better understanding of our overall financial performance.
Adjusted Operating Profit
Adjusted Operating Profit measures Frontier's financial performance after eliminating non-cash development cost accounting adjustments (cost capitalisation, amortisation charges and impairment charges), non-cash share charges, non-operating items (including restructuring costs), and after recording the full benefits of development-related tax and R&D expenditure credits against the expenditure they relate to. This effectively provides the cash profit figure that would have been achieved if we expensed all game development investment as it was incurred, net of those tax and R&D expenditure credits, rather than capitalising those costs and amortising them over several years.
6 months to 30 November 2025 £'000
6 months to 30 November 2024 £'000
12 months to 31 May 2025 £'000
Operating profit
7,815
4,543
12,651
Add back non-cash intangible asset amortisation charges for game developments and game technology
11,173
10,944
19,677
Deduct capitalised investment costs in game developments and game technology
(13,296)
(14,601)
(28,279)
Add back non-cash share-based payment expenses
1,106
1,248
2,368
Adjustment to record the full benefits of tax and R&D expenditure credits against the expenditure they relate to
2,916
3,384
6,767
Adjustments to tax and R&D expenditure credits of prior periods
-
-
62
Adjusted Operating Profit
9,714
5,518
13,246
EBITDA
EBITDA, being earnings before interest, tax, depreciation and amortisation, is commonly used by investors when assessing the financial performance of companies. It attempts to arrive at a 'cash profit' figure by adjusting operating profit for non-cash depreciation and amortisation charges. In our case, EBITDA does not provide a clear picture of our cash profitability, as it adds back amortisation charges relating to game developments, but without deducting the investment costs for those developments, resulting in a profit measure which does not take into account any of the costs associated with developing games. Since EBITDA is a commonly used financial performance measure, it has been included below for the benefit of readers of the accounts who may value that measure of performance.
6 months to 30 November 2025 £'000
6 months to 30 November 2024 £'000
12 months to 31 May 2025 £'000
Operating profit
7,815
4,543
12,651
Depreciation and amortisation
13,652
12,874
23,435
EBITDA
21,467
17,417
36,086
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