Business
FY23 Financial Results
FY23 Financial Results.
About this update from Frontier Developments Plc
[{"type":"text","content":"\n\n13 September 2023\nFrontier Developments plc\nFY23 Financial Results\nFrontier Developments plc (AIM: FDEV, 'Frontier', the 'Company', or the 'Group'), a leading developer and publisher of video games based in Cambridge, UK, publishes its full-year results for the 12 months ended 31 May 2023 ('FY23'). This announcement contains inside information.\nFinancial Highlights\n\n\n\n\n\n\n\nFY23\n(12 months to\n 31 May 2023)\n\n\nFY22\n(12 months to\n 31 May 2022)\n\n\n\n\nRevenue\n\n\n£104.6m\n\n\n£114.0m\n\n\n\n\nEBITDA*\n\n\n£33.0m\n\n\n£41.1m\n\n\n\n\nAdjusted EBITDA**\n\n\n(£4.6m)\n\n\n£6.7m\n\n\n\n\nOperating (loss)/profit\n\n\n(£26.6m)\n\n\n£1.5m\n\n\n\n\nEPS (basic)\n\n\n(53.6p)\n\n\n24.6p\n\n\n\n\nCash balance at year end\n\n\n£28.3m\n\n\n£38.7m\n\n\n\n\n \n· Revenue of £104.6 million (FY22: £114.0 million) was achieved through the ongoing performance of games which released in earlier financial years, sales from F1® Manager 2022 which released in August 2022, and modest contributions from new Foundry titles released during the period.\n· Adjusted EBITDA** was a loss of £4.6 million (FY22: profit of £6.7 million), reflecting lower revenues achieved in FY23 versus the prior period and investment in titles for release in future years as Frontier gears up to deliver two new game releases per financial year from FY24 onwards.\n· Operating profit in FY23 was negatively impacted by £28.7 million of non-cash intangible asset impairment and accelerated amortisation charges resulting from the closure of Foundry and a prudent re-assessment of the overall future performance of the F1® Manager franchise following lower than expected initial sales of F1® Manager 2023. The incremental non-cash charges resulted in an operating loss of £26.6 million in the period (FY22: profit of £1.5 million).\n· Frontier continues to be well capitalised, with a cash balance at the end of FY23 (on 31 May 2023) of £28.3 million and £24.8 million as at the end of August 2023. The net cash outflow of £10.4 million in FY23 was after outflows of £10.9 million for the acquisition of Complex and £3.0 million for the purchase of shares in the Employee Benefit Trust. Cash would have grown in FY23 if the acquisition and share purchases are disregarded.\n \n*Earnin...