Financial

FY23 Financial Results

Summary

The FY23 financial results show a contraction in revenue to £104.6 million, an 8 % decline from the previous year, driven largely by lower sales of the F1® Manager series. Adjusted EBITDA swung from a £6.7 million profit in FY22 to a £4.6 million loss, while the IFRS operating loss widened to £26.6 million. Non‑cash intangible charges of £28.7 million—primarily the closure of Foundry (£13.7 m) and a £15 million impairment on the F1® Manager franchise—were key contributors to the loss. Cash reserves fell from £38.7 million to £28.3 million, reflecting higher operating expenses and capitalised development costs. The portfolio remains dominated by legacy titles, with 72 % of revenue generated from pre‑FY23 releases such as Jurassic World Evolution 2. New initiatives include the acquisition of Complex Games in November 2022 and the planned launch of Warhammer Age of Sigmar: Realms of Ruin, a real‑time strategy title slated for November 2023. The company has refocused on Creative Management Simulation games, closing Foundry and reallocating resources to two new CMS projects. Leadership reviews aim to improve return on investment. For FY24, market consensus expects revenue of £108 million and an adjusted EBITDA loss of £9 million. The company anticipates that the new RTS release, alongside continued support for existing titles and undisclosed revenue streams, will offset the F1® Manager shortfall. The strategy shift toward core CMS titles and tighter cost management underpins confidence in returning to profitable performance over the medium term.

From the report

FY23 FINANCIAL RESULTS SEPTEMBER 2023 UBS INEOS Mobild RYBIT HNA5 DC ROWOURNE DRACLE NM Jonny Watts Alex Bevis CEO CFO

HEADLINES • Our portfolio of games released before FY23 continues to deliver • Sales of our F1® Manager games series have been below expectations • Our first acquisition – Complex Games – completed in November 2022 • Our first real-time strategy (RTS) game, Warhammer Age of Sigmar: Realms of Ruin, will release in November 2023 • We have re-focused and re-set our strategy: • Closed Foundry in June • Two titles are now in development in our core genre of Creative Management Simulation (CMS) games • We are reviewing our resources, processes and leadership to deliver better return on investment

FY23 FINANCIAL HEADLINES • Revenue of £104.6 million (FY22: £114.0 million) • Adjusted EBITDA* loss of £4.6 million (FY22: profit of £6.7 million) • Non-cash intangible asset charges of £28.7 million: • Closure of Foundry – £13.7 million • Prudent re-assessment of the F1® Manager franchise – £15.0 million • Reported operating loss of £26.6 million (FY22: profit of £1.5 million) • Cash at 31 May 2023 of £28.3 million (31 May 2022: £38.7 million) * Earnings before interest, tax, depreciation, and amortisation charges related to game developments and Frontier’s game technology, less investments in game developments R

A STRONG AND ESTABLISHED PORTFOLIO (BACK CATALOGUE) Delivered 72% of revenue in FY23, led by Jurassic World Evolution 2 JURASSIC PLANET WORLD ZOO EVOLUTION TROPICAL PACK FEATHERED SPECIES PACK ELITE DANGEROUS WARHAMMER PLANET Colle CHAOS GATE COASTER EDIION DAEMONHUNTERS DUTY ETERNAL

F1® MANAGER • F1® Manager 2022 reached over 850,000 players • F1® Manager 2023 delivered enhancements and new features ® • Positive reception to the game at release, including good critic MANAGER23 reviews O 13 • The highly accessible Race Replay mode has been particularly well received T RS • Sales during pre-order were lower than last year • Sales post-launch were more encouraging • Current revenue projections are lower than last year • We will continue to support and nurture F1® Manager 2023 - we Bull HNA5 UBS PETRONAS Mobil RYBIT MoneyGram still have positive steps to maximise sales CROWDSTRIKE INEOS PRACLE NT MoneyGram TeamViewer Hewlett Packerd • We are developing our plans for 2024 Enterprise • Non-cash impairment charge of £15.0 million in FY23 accounts following a prudent re-assessment of the overall F1® Manager franchise

WARHAMMER AGE OF SIGMAR: REALMS OF RUIN • Realms of Ruin provides a complete Warhammer RTS experience: ARHAMME AGEOFSIGMAR • CAMPAIGN. Rich and authentic cinematic campaign exploring REALMS the nature of survival in the mortal realm of Ghur • MULTIPLAYER. Fight for online supremacy in cross-platform RUIN • multiplayer - 1v1, 2v2, including up to three AI OF CONQUEST MODE. Engage in eternal conquest – singleplayer challenge mode • CREATE. Experience endless creativity. Build and Share with the Map Editor, Army Livery and Scene Editor • We have exclusive rights to the Warhammer Age of Sigmar brand - Warhammer IP has been proven to be an excellent enabler for RTS • Traditional and innovative control systems to achieve parity of play between PC and console players for the first time in an RTS • Highly positive reception from press and players, from Behind Closed Doors (BCDs) to our hands-on Gamescom stand • Releases 17 November on PC, via Steam and the Epic Games Store; PlayStation® 5; and Xbox Series X|S

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Words: 2,843
Format: PDF
Type: Financial

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