Frontier Developments (FDEV)

Sector:

Leisure Products

Index:

FTSE AIM All-Share

141.00p
   
  • Change Today:
      4.80p
  • 52 Week High: 631.00p
  • 52 Week Low: 107.00p
  • Currency: UK Pounds
  • Shares Issued: 39.48m
  • Volume: 154,535
  • Market Cap: £55.66m
  • RiskGrade: 195

Frontier Developments cheers strong first half

By Josh White

Date: Thursday 19 Jan 2023

LONDON (ShareCast) - (Sharecast News) - Video games developer and publisher Frontier Developments reported a 16% improvement in revenue in its first half on Thursday, to £57.1m.
The AIM-traded firm put the performance down to the release of F1 Manager 2022 in August, ongoing sales of its current portfolio, and new paid downloadable content (PDLC) for existing games.

Its gross profit margin of 63% for the six months ended 30 November was "consistent" with the prior-year period, underpinned by a continued contribution from its existing portfolio.

Net research and development expenses reduced by £2.5m to £16.1m, primarily as a result of the full amortisation of Elite Dangerous: Odyssey during the 2022 financial year.

Operating profit rebounded to £6.9m, from a first-half loss of £1.3m a year ago, through a combination of a higher revenue and lower research and development costs.

The board said adjusted EBITDA, which it called "a measure of cash profit", remained as a small net outflow of £0.6m, versus an outflow of £0.9m a year earlier, after continued investment in future titles and support for existing games.

Its net cash balance was £42.6m at period-end on 30 November, up from £38.7m at the end of May.

Net cash grew £3.9m during the period, despite an £8.8m cash outflow in November for the acquisition of Complex Games.

"During the first half of the financial year our game portfolio performed largely in line with expectations," said chief executive officer Jonny Watts.

"However, the key December trading period was below expectations and we believe this was partly due to increased player price sensitivity.

"As we look forward, there are important lessons we have learned for the F1 Manager franchise, including making the game more accessible and engaging to a wider audience."

Watts said he was "confident" that the firm delivered a good first game to build upon.

"We have announced a review of Frontier Foundry, which we expect to complete by the end of the financial year, as a result of the financial challenges and competition for that third-party publishing business model.

"We continue to look forward to the releases of Deliver us Mars and The Great War: Western Front in the next few months.

"They offer upside potential but we are being cautious given our experience of the market in December."

Jonny Watts said the Warhammer Age of Sigmar real-time strategy game remained on track for release in the 2024 financial year.

"Overall we believe our core strategy remains sound.

"We have a strong portfolio of good games and a large and talented team of people.

"We will continue to work together to navigate our challenges and deliver on our opportunities."

At 1524 GMT, shares in Frontier Developments were up 2.66% at 483p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

FDEV Market Data

Currency UK Pounds
Share Price 141.00p
Change Today 4.80p
% Change 3.52 %
52 Week High 631.00p
52 Week Low 107.00p
Volume 154,535
Shares Issued 39.48m
Market Cap £55.66m
RiskGrade 195

FDEV Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
17.46% above the market average17.46% above the market average17.46% above the market average17.46% above the market average17.46% above the market average
45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average
Price Trend
87.77% below the market average87.77% below the market average87.77% below the market average87.77% below the market average87.77% below the market average
83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average
Income Not Available
Growth
83.42% above the market average83.42% above the market average83.42% above the market average83.42% above the market average83.42% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 0
Buy 2
Neutral 7
Sell 1
Strong Sell 0
Total 10
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

FDEV Dividends

No dividends found

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 7,833 @ 141.00p
16:35 1 @ 141.00p
16:35 186 @ 141.00p
16:35 153 @ 141.00p
16:35 1,320 @ 141.00p

FDEV Key Personnel

CEO Jonathan (Jonny) Francis Watts
CFO Alex Bevis

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