FinancialFrontier Developments
Frontier FY24 Financial Results
1 Sept 202420 pages~13 min full read
Frontier Developments returned to Adjusted EBITDA profitability in H2 FY24, achieving a £0.9 million profit compared to a £4.6 million loss in the previous year.
Total FY24 revenue fell 15% to £89.3 million, though the company improved its gross margin by 5 percentage points to 69% through cost-reduction measures.
The company recorded a net loss of £21.5 million under IFRS standards, primarily due to £31.0 million in amortisation and £16.9 million in impairments.
Strategic restructuring reduced annual operating expenses by approximately 20% and included the £4.9 million sale of RollerCoaster Tycoon 3 publishing rights.
The future portfolio is narrowed to four core creative management simulation (CMS) franchises, with Planet Coaster 2 launching in autumn 2024.
The development pipeline includes a third Jurassic World game scheduled for FY26 and an unannounced CMS title for FY27.
Year-end cash reserves strengthened to £29.5 million, supporting management's expectation of continued profitability in FY25.
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.
