Financial · September 1, 2025

FY25 Financial Results: 1 June 2024 – 31 May 2025

Summary

Frontier Developments achieved a significant financial turnaround in FY25, characterized by a strategic pivot toward the Creative Management Simulation (CMS) genre. Revenue rose to £90.6 million, facilitating an adjusted operating profit of £13.2 million and a net profit of £16.4 million, a stark recovery from the previous year's net loss of £21.5 million. This performance was underpinned by a 41% reduction in operating expenses and a 25% year-on-year growth in the CMS category, which now accounts for 77% of total revenue. The company’s cash position strengthened considerably, ending the period at £42.5 million. Core franchises served as the primary engines of growth, with Jurassic World Evolution and Planet Zoo contributing 27% and 25% of total revenue, respectively. The launch of Planet Coaster 2 proved highly successful, moving over 600,000 units and driving a nearly 200% increase in franchise revenue. Furthermore, Elite Dangerous experienced a 76% revenue surge fueled by a 150% increase in downloadable content sales. Post-release nurturing remains a pillar of the business model, with PDLC contributing 36% of total revenue and back-catalogue sales growing by 4%. The future roadmap focuses on long-term monetization and a steady release cycle of high-margin titles. Key upcoming milestones include the release of Jurassic World Evolution 3 in October 2025, followed by two unannounced CMS titles scheduled for FY27 and FY28. While these forward-looking projections suggest continued stability and growth, they remain subject to market risks and the inherent volatility of the global gaming industry. The current financial trajectory indicates that the refocus on core competencies has successfully stabilized the balance sheet and established a sustainable foundation for upcoming fiscal years.

From the report

DISCLAIMER The information contained in this confidential the account or benefit of, U.S. Persons (as defined in or advisers take any responsibility for, or will accept any shareholders, directors, officers, agents, employees or by Frontier Developments plc (the "Company"). from the registration requirements of the Securities This Presentation has not been approved by an authorised Act and applicable state securities laws. person in accordance with Section 21 of the Financial Neither the Securities and Exchange Commission FY25 FINANCIAL RESULTS Services and Markets Act 200o ("FSMA") andtherefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out This Presentation does not constitute an offer, or any FOR THE FINANCIAL YEAR 1 JUNE 2024 TO 31 contractual, tortious, statutory or otherwise, in respect available must make its own independent assessment of, the accuracy or completeness of the Information or of the Company after making such investigations and for any of the opinions contained herein or for any taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and amendment. assumptions and each recipient should satisfy itself in relation to such matters. MAY 2025 Neither this Presentation nor any copy of it may be (a)

lar, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and amendment. assumptions and each recipient should satisfy itself in relation to such matters. MAY 2025 Neither this Presentation nor any copy of it may be (a) worth companies within the meaning set out in Article 49 of securities in the Company. Such an offer will be made uncertainties, and actual results and developments may Republic of Ireland, the Republic of South Africa or the the Order or are otherwise permitted to receive it. only by delivery of an offering memorandum and United States of America (each a "Restricted Territory"), subscription agreement. SEPTEMBER 2025 their territories or possessions; (b) distributed to any Any other person who receives this Presentation should not While the information contained herein has been prepared these statements. These forward-looking statements U.S. person (as defined in Regulation S under the rely or act upon it. By accepting this Presentation and not are statements regarding the Company's intentions, immediately returning it, the recipient represents and in good faith, neither the Company nor any of its beliefs or current expectations concerning, among other Securities Act) or (c) distributed to any individual warrants that they are a person who falls within the above shareholders, directors, officers, agents, employees or things, the Company's results of operations, financial outside a Restricted Territory who is a resident thereof description of persons entitled to receive the Presentation.

individual warrants that they are a person who falls within the above shareholders, directors, officers, agents, employees or things, the Company's results of operations, financial outside a Restricted Territory who is a resident thereof description of persons entitled to receive the Presentation. advisers give, have given or have authority to give, any condition, prospects, growth, strategies and the in any such case for the purpose of offer for sale or This Presentation is not to be disclosed to any other person or representations or warranties (express or implied) as to, or industry in which the Company operates. By their solicitation or invitation to buy or subscribe any used for any other purpose. in relation to, the accuracy, reliability or completeness of nature, forward-looking statements involve risks and securities or in the context where its distribution may be the information in this Presentation, or any revision thereof, construed as such offer, solicitation or invitation, in any registered under the Securities Act of 1933, as amended (the future. These forward-looking statements speak only as exemption. The distribution of this document in or to "Securities Act"), or the securities laws of any state of the such information being referred to as "Information") and of the date of this Presentation and the Company does persons subject to other jurisdictions may be restricted United States, and may not be offered or sold within the liability therefore is expressly disclaimed.

ties laws of any state of the such information being referred to as "Information") and of the date of this Presentation and the Company does persons subject to other jurisdictions may be restricted United States, and may not be offered or sold within the liability therefore is expressly disclaimed. Accordingly, not undertake any obligation to update or revise these by law and persons into whose possession this United States or to, or for neither the Company nor any of its shareholders, forward-looking statements to reflect events or document comes should inform themselves about, and directors, officers, agents, employees circumstances after the date of this Presentation. observe, any such restrictions. Any failure to comply This Presentation should not be considered as the with these restrictions may constitute a violation of the giving of investment advice by the Company or any of laws of the relevant jurisdiction. its © 2025 FRONTIER FRONTIER DEVELOPMENTS DEVELOPMENTS PLC. PLC. ALL ALL RIGHTS RIGHTS RESERVED PRIVATE AND CONFIDENTIAL RESERVED

CREATING MOMENTUM 2 OUR FINANCIALS: A SIGNIFICANT UPLIFT IN PERFORMANCE The information contained in this confidential the account or benefit of, U.S. Persons (as defined in or advisers take any responsibility for, or will accept any shareholders, directors, officers, agents, employees or Our strategy to refocus on Creative Management Simulation (CMS) games is delivering: by Frontier Developments plc (the "Company"). contractual, tortious, statutory or otherwise, in respect available must make its own independent assessment Revenue grew by £1.3 million to £90.6 million of, the accuracy or completeness of the Information or of the Company after making such investigations and person in accordance with Section 21 of the Financial Neither the Securities and Exchange Commission for any of the opinions contained herein or for any taking such advice as may be deemed necessary. In Adjusted Operating Profit grew by £8.6 million to £13.2 million particular, any estimates or projections or opinions being delivered for information purposes only to a very limited or disapproved of these securities or passed upon howsoever arising, from the use of this Presentation. contained herein necessarily involve significant Cash grew by £13.0 million to £42.5 million elements of subjective judgment, analysis and have professional experience in matters relating to representation to the contrary is a criminal offence.

howsoever arising, from the use of this Presentation. contained herein necessarily involve significant Cash grew by £13.0 million to £42.5 million elements of subjective judgment, analysis and have professional experience in matters relating to representation to the contrary is a criminal offence. subject to material updating, revision and further assumptions and each recipient should satisfy itself in The Board are confident in Frontier’s ability to deliver further annual relation to such matters. This Presentation does not constitute an offer, or any growth in FY26. We are buying back shares This Presentation may contain forward-looking Neither this Presentation nor any copy of it may be (a) to enhance shareholder value. worth companies within the meaning set out in Article 49 of securities in the Company. Such an offer will be made uncertainties, and actual results and developments may Republic of Ireland, the Republic of South Africa or the the Order or are otherwise permitted to receive it. only by delivery of an offering memorandum and differ materially from those expressed or implied by United States of America (each a "Restricted Territory"), subscription agreement. these statements. These forward-looking statements their territories or possessions; (b) distributed to any OUR CORE FRANCHISES: DELIVERING REVENUE OVER MANY YEARS U.S. person (as defined in Regulation S under the rely or act upon it.

Pages: 20
Words: 17,838
Format: PDF
Type: Financial

Topics

View this document on Game Industry Library.

Related Documents

Financial

FY25 Trading Update: For the Financial Year 1 June 2024 to 31 May 2025

Frontier Developments has successfully executed a strategic pivot toward its core Creative Management Simulation (CMS) portfolio, which now generates 77% of total revenue. This refocusing effort resulted in a provisional FY25 revenue increase to £90.6 million and a substantial rise in Adjusted EBITDA to between £8 million and £9 million, up from just £0.9 million the previous year. Financial stability is further evidenced by a 10% reduction in cash operating expenses and a strengthened cash position of £42.5 million. This robust performance prompted the initiation of a £10 million share buyback program to return capital to shareholders. Operational success is driven by both new releases and the sustained performance of established franchises. Planet Coaster 2 achieved a strong launch with over 500,000 units sold, while the Jurassic World Evolution and Planet Zoo series continue to provide a stable foundation, contributing 27% and 25% of total revenue respectively. Notably, Elite Dangerous experienced a 76% year-over-year revenue surge, fueled by a 150% increase in downloadable content sales following the introduction of new ship access models. These results underscore the effectiveness of a streamlined development approach and improved gross margins, which reached approximately 70%. The long-term growth strategy relies on a disciplined release schedule and enhanced leadership structures. A newly established Executive Board has been tasked with improving operational efficiency and unifying decision-making across the organization. Future growth is anchored by the confirmed release of Jurassic World Evolution 3 on October 21, 2025, alongside an unannounced CMS title currently in development for FY27. By concentrating resources on high-margin simulation titles and optimizing internal workflows, the company has successfully transitioned from a period of restructuring to one of sustainable profitability and capital return.

investment market-forecast uk+1

Frontier DevelopmentsJun 2025

Financial

FY25 Interim Financial Results for the Period 1 June 2024 to 30 November 2024

Frontier Developments achieved a significant financial turnaround during the first half of fiscal year 2025, covering the period from June 1 to November 30, 2024. Revenue reached £47.3 million, representing a 19% increase in underlying sales compared to the previous year. This growth, coupled with a 25% reduction in operating expenses following a strategic restructuring, shifted the company from a £4.9 million loss to an Adjusted EBITDA profit of £4.4 million. The company’s financial health is further evidenced by a gross margin improvement to 70% and a robust cash balance that grew to £30.5 million by December 2024. The recovery is anchored by a refined strategy focusing on the Creative Management Simulation (CMS) genre. The successful launch of Planet Coaster 2 served as a primary catalyst, selling over 400,000 units and generating more than £13 million in revenue within its first two months. This performance was bolstered by a resilient back catalogue and a notable resurgence in Elite Dangerous, where downloadable content revenue more than doubled year-over-year due to enhanced monetization and player engagement. The Jurassic World Evolution franchise also remains a cornerstone of the portfolio, having generated over £261 million in lifetime revenue to date. Looking ahead, the development pipeline is structured to release one major CMS title annually through fiscal year 2027. Key upcoming milestones include a third Jurassic World game scheduled for fiscal year 2026 to align with the theatrical release of Jurassic World Rebirth, followed by an unannounced CMS title in fiscal year 2027. While these forward-looking projections remain subject to market risks and the inherent volatility of the gaming industry, the current trajectory suggests a period of sustained profitability driven by disciplined cost management and a concentrated focus on core genre expertise.

investment market-analysis uk

Frontier DevelopmentsJan 2025

Financial

H1 FY26 Financial Results

Frontier Developments achieved significant financial growth during the first half of fiscal year 2026, characterized by a 26% year-over-year revenue increase to £59.6 million and a 76% surge in adjusted operating profit to £9.7 million. This performance was underpinned by a strategic pivot toward the Creative Management Simulation (CMS) genre, which now accounts for 90% of total company revenue. The success of the Jurassic World Evolution franchise remains the primary driver of this growth, representing 63% of total revenue, while the Planet Zoo and Planet Coaster series continue to provide stable contributions at 15% and 11% respectively. The company’s operational strategy focuses on sustainable growth through a consistent release cadence of one major CMS title per year. Future prospects are anchored by the continued outperformance of Jurassic World Evolution 3 relative to its predecessors, alongside a confirmed pipeline that includes a Planet Zoo sequel and a new title from the Canadian development team scheduled for fiscal year 2027. Despite a moderate decline in gross margin from 70% to 64%, total operating expenses remained stable, allowing the firm to maintain a robust balance sheet with £40.1 million in cash and total net assets of £94.2 million. Based on these strong interim results, full-year guidance for fiscal year 2026 has been upgraded to approximately £100 million in revenue and £11 million in adjusted operating profit. This outlook reflects a transition toward a more focused and profitable business model centered on established intellectual properties within the simulation space. While forward-looking statements indicate a positive trajectory, leadership maintains a disciplined approach to capital allocation and project development to ensure long-term stability across its global operations.

investment market-analysis uk

Frontier DevelopmentsJan 2026

Financial

Frontier FY24 Financial Results

Frontier Developments transitioned through a strategic reset during the 2024 fiscal year, shifting its primary focus back to its core expertise in creative management simulation (CMS) games. Following an organizational review in the second half of the year, the company reshaped its internal teams and implemented cost-reduction measures that lowered annual operating expenses by approximately 20%. These structural changes, combined with a strong performance from the back catalogue and the £4.9 million sale of the RollerCoaster Tycoon 3 publishing rights, allowed the company to return to profitability on an Adjusted EBITDA basis in the second half of the year. Financial results for FY24 show total revenue of £89.3 million, a 15% decrease from the £104.6 million reported in FY23. Despite the lower revenue, the company achieved an Adjusted EBITDA profit of £0.9 million, recovering from a £4.6 million loss the previous year. The gross margin improved by 5 percentage points to 69%, driven by a more efficient cost of sales. However, under IFRS reporting standards, the company recorded a net loss of £21.5 million, impacted by non-cash charges including £31.0 million in amortisation and £16.9 million in impairments. The year-end cash position strengthened to £29.5 million. The portfolio strategy now centers on four key CMS franchises: Planet Coaster, Planet Zoo, Jurassic World Evolution, and Jurassic World Evolution 2, which have collectively generated significant lifetime revenue. Looking ahead, the pipeline includes the release of Planet Coaster 2 in autumn 2024, a third Jurassic World game scheduled for FY26 to coincide with the theatrical release of Jurassic World Rebirth, and an unannounced CMS title for FY27. Management expresses confidence in delivering profitability for FY25, supported by a sustainable cost base and a focused release schedule within the CMS genre.

investment uk market-analysis

Frontier DevelopmentsSept 2024