Frontier Developments (FDEV) Trading Update summary

Financial performance highlights

• FY24 revenue reached approximately £89 million, driven by strong H2 back-catalogue sales and the successful launch of Planet Zoo: Console Edition.

• Annual operating costs were reduced by about 20% in H2 following an organisational review completed in March.

• Achieved profitability in H2 on an Adjusted EBITDA basis, excluding the gain from the sale of RollerCoaster Tycoon 3 publishing rights.

• FY24 Adjusted EBITDA is expected to show a provisional profit of around £0.5 million, reversing a prior year loss.

• Cash position increased by over £12 million in H2, ending FY24 at £29.5 million.

Strategic and operational updates

• Strategy reset in 2023 to focus on creative management simulation (CMS) games, where Frontier is an industry leader.

• Three CMS games are scheduled for release in the next three financial years, including an unannounced own-IP CMS game in FY25.

• F1 Manager 2024 is set for release on 23 July 2024 across multiple platforms.

• Board is comfortable with analyst consensus for FY25 revenue of £87 million and aims for continued profitability through cost control.

• CEO highlights a positive turnaround, a sustainable cost base, and an exciting CMS-led roadmap.