FinancialFrontier Developments
FY24 Financial Results: Reset and Back on Track
22 pages~52 min full read
Key insights
7 takeaways · ~3 min read- 01Frontier Developments plc reported FY24 revenue of £89.3 million, a decrease from £104.6 million in FY23, but exceeded expectations due to strong H2 performance from creative management simulation (CMS) back catalogue games.See it on page 1
- 02The company implemented a strategic reset in H1 FY24 to focus on CMS games, followed by an Organizational Review in H2 FY24 that reduced annual operating costs by approximately 20% and led to a return to profitability on an Adjusted EBITDA basis in H2.See it on page 6
- 03Despite the strategic shift, Frontier recorded an IFRS operating loss of (£28.4 million) in FY24, slightly worse than (£26.6 million) in FY23, largely due to impairment charges, including £16.9 million for Warhammer Age of Sigmar: Realms of Ruin.See it on page 8
- 04Frontier's cash balance remained strong at £29.5 million at May 31, 2024, up from £28.3 million in FY23, and the company has no debt.See it on page 8
- 05CMS titles generated 62% of Group revenue in FY24, up from 58% in FY23, with Planet Zoo and Jurassic World Evolution 2 being the strongest performers, and Planet Coaster maintaining a 96% annual revenue sustain rate.See it on page 6
- 06The company has a roadmap of three self-published CMS games planned for the next three consecutive financial years, building on its refocused strategy.See it on page 5
- 07Frontier continues to benefit from UK and Canadian tax incentive schemes, including Video Games Tax Relief, resulting in a corporation tax credit of £7.0 million in FY24.See it on page 8
Summary
FY24 FINANCIAL RESULTS – RESET AND BACK ON TRACK 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 full-year results for the 12 months ended 31 May 2024 (‘FY24’). This announcement contains inside information.
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