LONDON (ShareCast) - (Sharecast News) - Frontier Developments reported a return to profitability in the year ended 31 May on Wednesday, supported by strong sales from its creative management simulation (CMS) franchises and tighter cost control.
Revenue edged up to £90.6m from £89.3m a year earlier, with CMS games driving growth.

The AIM-traded firm said the launch of Planet Coaster 2 in November last year helped boost CMS franchise revenue by 25%, with Planet Coaster, Planet Zoo and Jurassic World Evolution together accounting for 77% of group sales, compared with 62% in the 2024 financial year.

Back catalogue titles, including Elite Dangerous, also grew 4% year on year.

Adjusted operating profit rose to £13.2m from £4.6m, while adjusted EBITDA improved to £9.4m from £0.9m.

The group reported an operating profit of £12.7m, a sharp turnaround from a £28.4m loss in 2024 when it absorbed impairment charges on underperforming titles.

Its cash balance increased to £42.5m from £29.5m, supported by trading, tax credits and the sale of publishing rights.

Frontier also launched a £10m share buyback in July, of which £4.4m had been deployed by the end of August.

"2025 was a year of delivery, resilience and renewed momentum for Frontier," said chief executive Jonny Watts.

"We executed the first phase of our long-term strategy, strengthened our financial foundations, and reaffirmed our leadership in creative management simulation.

"With a clear roadmap, a passionate team, and a robust pipeline of titles, we are focused on building sustainable growth through high-quality, player-centric experiences."

Looking ahead, Jurassic World Evolution 3 was scheduled for release in October, with further CMS titles planned for the 2027 and 2028 financial years.

The company said it expected continued annual growth as it expanded its pipeline and built on its established position in the simulation games sector.

At 1149 BST, shares in Frontier Developments were up 3.25% at 387.18p.

Reporting by Josh White for Sharecast.com.

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