LONDON (ShareCast) - (Sharecast News) - Frontier Developments reported a significant financial recovery for the six months ended 30 November on Wednesday, posting an adjusted EBITDA profit of £4.4m, a turnaround of £9.3m compared to the £4.9m loss recorded in the same period last year.
The AIM-traded company said it also achieved an IFRS operating profit of £4.5m, swinging from a £33.3m loss in the first half of the 2024 financial year.

Revenue for the period reached £47.3m, consistent with management expectations, while the firm's cash balance improved to £27.2m at period end, rising further to £30.5m by 31 December.

A key driver of the performance was the successful launch of Planet Coaster 2 in November, which claimed the top spot on Steam and accounted for 22% of first-half revenue despite its late-period release.

Over 400,000 units of the game were sold across the PC, PlayStation 5, and Xbox Series S/X platforms within two months, bolstered by festive price promotions.

Its predecessor, Planet Coaster, also saw strong sales during the same period, enhancing the game's community growth.

Frontier said its creative management simulation (CMS) strategy continued to deliver, with enduring sales of established titles such as Planet Zoo and Jurassic World Evolution 2.

Additionally, Elite Dangerous marked its 10th anniversary with increased revenue driven by new story elements and content updates.

The July release of F1 Manager 2024 further diversified the portfolio, introducing a create-a-team mode that the board said resonated with players.

Post-period, the Steam winter sale and other promotions delivered the company's third-highest festive sales performance, trailing only the pandemic-boosted years of 2020 and 2021.

Frontier said it remained on track to meet 2025 revenue and profit expectations, buoyed by its strong start and robust portfolio performance.

"It was great to see Planet Coaster 2 release in November, the first of three CMS games we scheduled through our strategic reset last year," said chief executive officer Jonny Watts.

"We are working hard to support and nurture the game as its player community grows."

Watts said Frontier's established portfolio of CMS games was continuing to deliver and, as it entered 2025, he was looking ahead "with excitement" to the company's third Jurassic World game, coming in the 2026 financial year.

"I remain confident in our team's ability to deliver on our exciting roadmap and I look forward to the years ahead."

At 1219 GMT, shares in Frontier Developments were up 24.86% at 231p.

Reporting by Josh White for Sharecast.com.

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