Business
Full year trading update & Frontier Foundry review
Full year trading update & Frontier Foundry review.
About this update from Frontier Developments Plc
[{"type":"text","content":"\n\n14 June 2023\nFull year trading update and Frontier Foundry review\nFrontier Developments plc (AIM: FDEV, 'Frontier', the 'Company', or the 'Group'), a leading developer and publisher of video games based in Cambridge, UK, announces an update on trading for financial year FY23, the 12 months ended 31 May 2023, alongside the outcome of the review of Frontier Foundry, its games label for third party publishing.\nHeadlines\n· FY23 revenue (unaudited) of around £104 million, in-line with guidance provided in January 2023\n· Solid performance from existing portfolio of games, generating 72% of revenue\n· Jurassic World Evolution 2 was the strongest performer in the period\n· F1® Manager 2022 was the lead revenue generator from new releases, selling over 800k units\n· Modest accretive financial benefits from the acquisition of Complex Games Inc, as expected\n· FY24 releases to include F1® Manager 2023 and Warhammer Age of Sigmar: Realms of Ruin\n· Completion of the strategic review of Frontier Foundry\nFY23 provisional financial results - subject to final review and audit\nProvisional, unaudited revenue, adjusted EBITDA and operating profit before one-off amortisation adjustments were all in-line with the guidance provided in January 2023.\nRevenue of around £104 million was delivered through a solid performance from the existing portfolio of games (released prior to 1 June 2022) which accounted for 72% of revenue during the period. Jurassic World Evolution 2, created in collaboration with Universal Products & Experiences, was the strongest performer in the portfolio, with revenue in its first 18 months exceeding the performance of the first Jurassic World Evolution game during its first 18 months. F1® Manager 2022 was the leading revenue generator amongst new games, selling over 800,000 units in its first nine months.\nAdjusted EBITDA, a measure of cash profitability, was in-line with expectations. Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation charges related to game developments and Frontier's game technology, less investments in game developments and Frontier's game technology, and excluding share-based payment char...