Key insights
7 takeaways · ~3 min read- 01Frontier Developments experienced a significant financial downturn in H1 FY24 (6 months to 30 November 2023), reporting a £33.1 million loss after tax compared to a £6.7 million profit in H1 FY23, and an operating loss of £30.8 million versus a £6.9 million profit in H1 FY23.See it on page 1
- 02Revenue decreased to £47.7 million in H1 FY24 from £57.1 million in H1 FY23, primarily due to lower-than-expected contributions from new game launches and a full impairment charge of £16.9 million for 'Realms of Ruin'.See it on page 3
- 03The company's cash balance significantly reduced to £17.1 million at November 30, 2023, down from £42.6 million in H1 FY23, though it increased to £19.9 million by December 31, 2023, after receiving subscription fees.See it on page 4
- 04Frontier is strategically refocusing on Creative Management Simulation (CMS) games, with three new CMS titles planned for release in FY25, FY26, and FY27, building on the strong performance of existing CMS games which generated £26.3 million (55% of total revenue) in H1 FY24.See it on page 1
- 05An organizational review led to cost reduction efforts, targeting 20% savings in annual operating costs by the start of FY25, with a £2.5 million restructuring charge recorded in H1 FY24.See it on page 3
- 06Back-catalogue games, particularly 'Jurassic World Evolution 2' and 'Planet Zoo', performed well, contributing 72% of total revenue in H1 FY24.See it on page 3
- 07Research and development expenses slightly decreased to £25.5 million in H1 FY24, but R&D amortisation and impairment charges increased significantly to £37.6 million due to the 'Realms of Ruin' impairment and updated amortisation profiles.See it on page 3
Summary
Frontier Developments plc (AIM: FDEV, ‘Frontier’, the ‘Company’, or the ‘Group’), a leading developer and publisher of video games based in Cambridge, UK, publishes its unaudited interim results for the 6 months to 30 November (6 months to 30 (6 months to 30 November 2023) November 2022) Revenue £47.7m £57.1m Adjusted EBITDA loss (£4.9m) (£0.6m) Operating (...
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