AIM-listed games developer and publisher Frontier Developments (FDEV) has raised its profit guidance after ‘excellent’ 1H trading.
The firm posted £59.6 million of revenue for the six months to 30 November, a 26% increase on the previous year. Adjusted operating profit increased an even more impressive 76% to £9.7 million in the half.
Also, the firm had net cash of over £40 million at the end of November, up 47% on the previous year.
| Share price: 596p +5.6% | P/E: 21x |
| Market Cap: £175m | Yield: n/a |
CMS STRATEGY DELIVERING
The firm’s focus on CMS or creative management simulation games is clearly paying off. Revenue from CMS games rose 52% in the half, accounting for 90% of sales against 75% previously.
A big part of that was due to Jurassic World Evolution 3, which was only released in October. Sales remained strong in December, with JWE3 achieving a Christmas Day sales record for the firm.
Meanwhile, 1H sales for Planet Coaster were mildly ahead of expectations thanks to new add-ins and updates. Also, Planet Zoo delivered strongly becoming Frontier’s highest grossing game by revenue, boding well for the sequel.
NEW GUIDANCE
On the back of this strong 1H performance and continued success over Christmas, the firm has increased its guidance.
Revenue for the year to May 2026 is now seen at around £100 million, up more than 10% on last year. Operating profit is now seen at around £11 million, still below last year’s £13.2 million but above forecasts.
New CEO Jo Cooke has arrived at Frontier at just the right time by the look of things. The 5% pop in the shares tells us the market likes what it hears too, so hopefully it’s onwards and upwards.
Read the press release here: https://www.frontier.co.uk/
Read related news here: https://sharesify.com/frontier-developments-surges-on-new-ceo/
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
