FY25 Update – Strong Results & Increased Momentum
11 June 2025
Frontier Developments plc
FY25 Trading Update - Strong Results and Increased Momentum
Frontier Developments plc (AIM: FDEV, 'Frontier', the 'Company' or the 'Group'), a leading developer and publisher of video games based in Cambridge, UK, provides an update on trading for the financial year ended 31 May 2025 ('FY25'), including provisional unaudited financial results.
FY25 Financial Headlines
· Revenue increased to £90.6 million (FY24: £89.3 million), with revenue from Frontier's genre-leading Creative Management Simulation (CMS) games growing 25% year-on-year.
· The three CMS game franchises - Planet Coaster, Planet Zoo and Jurassic World Evolution - together generated 77% of total revenue in FY25 (FY24: 62%).
· Profitability grew significantly, with Adjusted EBITDA* expected to be in the range of £8 million to £9 million (FY24: £0.9 million) through higher revenue, a higher gross margin percentage, a lower operating cost base, and a £3.5 million gain on the sale of the publishing rights for a Foundry game (Stranded: Alien Dawn).
· Cash grew by £13.0 million to £42.5 million at 31 May 2025 (31 May 2024: £29.5 million), reflecting trading performance, tax credits and the sale of publishing rights.
· A share buyback programme of up to £10 million will be initiated, subject to shareholder approval, to enhance shareholder value.
FY25 Franchise Headlines
· Planet Coaster franchise revenue grew by almost 200% year-on-year through the release of Planet Coaster 2 in November 2024 on PC, PlayStation 5 and Xbox Series X|S.
· Planet Zoo franchise revenue grew by 2%, building on the release of Planet Zoo: Console Edition in March 2024, with new content in the year for both console and PC players.
· Jurassic World Evolution franchise revenue sustained at 96% of the prior year level, as we prepare the franchise for its next big step with the development of Jurassic World Evolution 3.
· Elite Dangerous revenue grew by 76% year-on-year through new content and player engagement.
Outlook
· The third exciting instalment in the Jurassic World Evolution game franchise, Jurassic World Evolution 3, will be released on 21 October 2025.
· Having achieved growth in revenue, profit and cash in FY25, the Board is confident in Frontier's ability to deliver further annual growth in FY26 through nurturing and expanding our genre-leading game franchises.
* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charges related to game developments and game technology, less investments in game developments and game technology, and excluding restructuring costs, share-based payment charges and other non-cash items.
Capital allocation and share buyback
Frontier has a strong balance sheet and continues to generate cash, having ended FY25 with cash of £42.5 million. The Board is confident in the future cash position of the Group, and that this can adequately fund future growth plans, which remains the Group's core capital allocation priority. The Board continuously reviews shareholder return opportunities and its capital allocation policy.
After considering the Company's balance sheet position and prevailing share price, the Board believes that it would be beneficial to return capital to shareholders through a share buyback. Accordingly, the Company intends to execute a share buyback of up to £10 million, the initiation of which is subject to shareholder approval of a Waiver under Rule 9 of the City Code on Takeovers and Mergers at a general meeting to be held on 27 June 2025, details of which are contained in the circular and notice of general meeting to be sent to shareholders today and available at https://www.frontier.co.uk/company/share-buyback. Further details on the proposed buyback will be announced in due course.
Executive Board
To build on the momentum in the business and to support Frontier's next phase of development, an Executive Board has been established with effect from this month to further drive operational efficiency and streamline effective decision-making. Reporting directly to the Company's Board of Directors, the Executive Board includes the senior leaders from Development, Publishing, People, Operations, Finance and Legal, as well as the Chief Executive Officer, Jonny Watts. The Chief Operating Officer, James Dixon, will chair and supervise the new Executive Board. As a result of this, and his increased focus on Frontier's operating performance, James has stepped down from the Company's Board of Directors effective today.
Change of Financial KPI
From FY26, Frontier intends to switch from reporting Adjusted EBITDA* to a new measure of financial performance, Adjusted Operating Profit**. This change will provide a more accurate representation of the business' performance and more closely reflect cash generation, including the recognition of regular video game tax credits and reliefs. Adjusted Operating Profit** in FY25, including the £3.5 million gain on the sale of publishing rights, is expected to be in the range of £11 million to £12 million (FY24: £4.1 million).
* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charges related to game developments and game technology, less investments in game developments and game technology, and excluding restructuring costs, share-based payment charges and other non-cash items.
** 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 credits and reliefs against the expenditure they relate to.
Jonny Watts, Frontier's CEO, said:
"Our strategy to refocus on Creative Management Simulation (CMS) games is delivering, with almost 80% of revenue coming from our three genre-leading CMS game franchises: Planet Coaster, Planet Zoo and Jurassic World Evolution. These results have been achieved through the hard work of our teams.
We begin the new financial year with renewed confidence, a portfolio of games that continues to deliver, and an exciting roadmap of future games and content. Our next big release will be Jurassic World Evolution 3, where we intend to delight players with brand new creative tools and highly sought-after breeding and juvenile dinosaurs."
Enquiries:
Frontier Developments +44 (0)1223 394 300
Jonny Watts, 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
Max Jones / Nikhil Varghese
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 video game consoles.
Frontier's LEI number: 213800B9LGPWUAZ9GX18.
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