Financial

FY25 H1 Results: Frontier Developments

Summary

FY25 H1 Results – a strong turnaround 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 2024 (‘H1 FY25’ or the ‘Period’) and provides a trading update for December 2024.

From the report

15 January 2025 Frontier Developments plc FY25 H1 Results – a strong turnaround 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 2024 (‘H1 FY25’ or the ‘Period’) and provides a trading update for December 2024. H1 Financial Summary & Headlines Frontier has delivered a strong turnaround in financial performance in H1 FY25, following the return to profitability achieved in the second half of FY24. H1 FY25 H1 FY24 H1 to H1 (6 months to 30 (6 months to 30 Increase / (Decrease) November 2024) November 2023) Revenue £47.3m £47.7m (£0.4m) Adjusted EBITDA profit/(loss)* £4.4m (£4.9m) £9.3m IFRS Operating profit/(loss) £4.5m (£33.3m) £37.8m Cash balance at period end £27.2m £17.1m £10.1m x Revenue of £47.3 million was in line with management’s expectations. x Actions taken in the preceding financial year to reduce costs and reshape the Company delivered a turnaround in profitability of over £9 million to an Adjusted EBITDA* profit of £4.4 million. x An improved cash position of £27.2 million at 30 November 2024 grew to £30.5 million at 31 December 2024, which is before receipt of December revenue. *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 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. Game Portfolio Overview Planet Coaster 2 achieved the #1 chart position on Steam at release on 6 November 2024, and contributed 22% of total revenue in H1 FY25, despite launching less than four weeks before the end of the Period. The game is a great addition to Frontier’s portfolio of creative management simulation (‘CMS’) games and is set to provide significant revenue contributions over many years. Total sales of Planet Coaster 2 across all platforms – PC, PlayStation 5 and Xbox Series S|X – exceeded 400,000 base game units within two months of release, including through planned price promotions in December. Its predecessor, Planet Coaster, also sold well during the festive period, including through a deep discount on Steam. The substantial number of new Planet Coaster players added through those price promotions provides a further opportunity to grow the Planet Coaster 2 community over time. Planet Coaster 2 is the first of three CMS games confirmed through the strategic reset undertaken in FY23-FY24, with the next being a third Jurassic World game, coming in FY26. The long-term strength of Frontier’s CMS-led strategy was again evidenced in the Period through the ongoing sales performance of Frontier’s back catalogue of established CMS games, led by Planet Zoo and Jurassic World Evolution 2.

4, with the next being a third Jurassic World game, coming in FY26. The long-term strength of Frontier’s CMS-led strategy was again evidenced in the Period through the ongoing sales performance of Frontier’s back catalogue of established CMS games, led by Planet Zoo and Jurassic World Evolution 2. Outside of CMS games, Frontier’s genre-leading space simulation game, Elite Dangerous, which celebrated its 10ᵗʰ anniversary in December, achieved a substantial increase in revenue in the Period through new story elements, and the release of both free and chargeable content. Early in the Period, on 23 July 2024, F1® Manager 2024 was released on PC, PlayStation 5, Xbox Series S|X, PlayStation 4, Xbox One and Nintendo Switch. This built on the strengths of Frontier’s first two F1® Manager games with the addition of the Create A Team mode to allow players to bring their own 11ᵗʰ team to the grid.

Trading Update and Outlook After the end of the Period, strong sales across the portfolio in the Steam winter sale and other price promotion events delivered Frontier’s third-highest festive sales performance, surpassed only by the stay-at-home boosted years of 2020 and 2021. The Board remains confident of delivering FY25 revenue and profitability in line with expectations following the strong performance achieved in the first seven months. Jonny Watts, Frontier’s CEO, said: “It was great to see Planet Coaster 2 release in November, the first of three CMS games we scheduled through our strategic reset last year. We are working hard to support and nurture the game as its player community grows. Our established portfolio of CMS games continues to deliver and, as we begin 2025, I look ahead with excitement to our third Jurassic World game, coming in FY26. I remain confident in our team’s ability to deliver on our exciting roadmap and I look forward to the years ahead.” There will be a call for analysts and institutional investors at 9:30a.m. today. To register, please contact [email protected]. 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

4 (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, coauthor 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 videogame consoles. Frontier’s LEI number: 213800B9LGPWUAZ9GX18. www.frontier.co.uk

Interim Results Statement REVENUE AND GROSS PROFIT H1 revenue of £47.3 million (H1 FY24: £47.7 million) was in line with management’s expectations, which was achieved through a strong back-catalogue performance and contributions from two new games; F1® Manager 2024 (23 July 2024) and Planet Coaster 2 (6 November 2024). Planet Coaster 2 was the strongest performer of the two games, contributing 22% of total revenue despite launching less than four weeks before the end of the Period. The back-catalogue of games that were released before the start of the financial year continued to perform well in H1 FY25. The largest contribution came from Frontier’s established portfolio of CMS games – Planet Coaster, Planet Zoo, Jurassic World Evolution and Jurassic World Evolution 2 – which together recorded £24.6 million of revenue in H1 FY25 (52% of total revenue). This represented an impressive sustain rate of 97%, versus the comparative period (H1 FY24: £25.5 million), including through the contribution of Planet Zoo: Console Edition (released March 2024). With new story elements and ships, Elite Dangerous revenue from both the base game and paid downloadable content (‘PDLC’) grew versus the comparative period, with PDLC sales almost doubling through strong player engagement. PDLC and free downloadable content are important elements of Frontier’s post-release nurturing strategy and, across the whole portfolio, PDLC accounted for 31% of total revenue in H1 FY25 (H1 FY24: 29%). Planet Zoo on PC and Planet Zoo: Console Edition each benefitted from new PDLC in the Period.

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Type: Financial

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