FY24 Interim Financial Results: For the Period 1 June 2023 to 30 November 2023

Frontier Developments reported a 17% year-over-year revenue decline to £47.7 million for the first half of FY24, resulting in an adjusted EBITDA loss of £4.9 million and a statutory operating loss of £30.8 million.

The company is pivoting back to its core Creative Management Simulation (CMS) expertise after underperformance from F1 Manager 2023 and Warhammer Age of Sigmar: Realms of Ruin.

The back-catalogue remains the primary revenue driver, accounting for 72% of total sales, with Jurassic World Evolution 2 and Planet Zoo contributing over half of all revenue.

Management has initiated a restructuring plan to reduce annual operating costs by 20% through a two-phase headcount reduction to restore profitability.

The development pipeline is being streamlined to focus on three new CMS titles scheduled for release between FY25 and FY27, including a new own-IP game and F1 Manager 2024.

Frontier maintains its FY24 revenue guidance of £80-95 million, supported by stable holiday trading and upcoming console ports for existing titles.

The company's top four CMS titles have historically generated over £430 million in cumulative revenue, serving as the foundation for the current strategic refocus.