Advertisement: Bar Ellison mid banner property
Advertisement: CJBS mid banner
Mid banner advertisement: BDO
Advertisement: Excalibur Healthcare mid banner
Advertisement: SATAVIA mid banner
Advertisement: Wild Knight Vodka
Barr Ellison Solicitors – commercial property
Advertisement: RSM mid banner
ARM Innovation Hub
Cambridgeand mid banner advertisement
Advertisement: Cambridge Network mid banner
Advertisement: EBCam mid banner
Advertisement: partnersand mid banner
Advertisement: TTP
Advertisement: Kao Data Centre mid banner
Advertisement: Simpsons Creative mid banner
Advertisement: Mogrify mid banner
Advertisement: S-Tech mid banner 3
Advertisement: Birketts mid banner
Advertisement: HCR Hewitsons mid banner
15 June, 2022 - 20:52 By Jamie Quested

Record annual revenue for Frontier Developments

Cambridge Science Park-based videogames creator and publisher Frontier Developments plc has announced record annual revenue of £114 million in FY22, 26 per cent up on the previous year.

Subject to audit, adjusted EBITDA in FY22 is anticipated to be in line with expectations at approximately £7-8 million versus £12 million reported for FY21. 

The year-on-year reduction reflects greater investment in significant game developments for release in future years, including F1® Manager 2022 for this summer (in FY23), and its Warhammer Age of Sigmar real-time strategy game for FY24.

Frontier continues to benefit from a strong balance sheet, with total cash balances at 31 May 2022 (unaudited) of £39 million (31 May 2021: £42 million). 

The small reduction in cash during the financial year reflected a greater investment in significant game developments for release in future years, and the £5 million purchase of shares by the Employee Benefit Trust undertaken in April 2022 to satisfy future share option exercises by employees.

FY22 benefitted from the release of another successful new Frontier title, Jurassic World Evolution 2, which has continued to attract an expanding player base since its launch in November 2021. 

By 31 May 2022, Jurassic World Evolution 2 had achieved over 1.3 million base game units sold across all platforms and formats, excluding base game digital downloads through Microsoft’s Game Pass subscription service, through which the base game became available on 17 May 2022.

David Braben, CEO and founder of  Frontier Developments, said: “We’ve had another year of solid growth. Following its launch in November 2021, our player base for Jurassic World Evolution 2 has continued to expand, as expected. 

“We are now very well set up for the future, with the Dominion expansion and bundles launching today for Jurassic World Evolution 2, and F1 Manager 2022 due later this summer.”

Braben added: “The team has done a great job this year, overcoming many challenges and working tirelessly to support our games and our players. 

“Our games label, Frontier Foundry, has performed well too, with Warhammer 40,000: Chaos Gate - Daemonhunters launching right at the end of the financial year and looking good for FY23 too, with further exciting Foundry releases to come.”

Over the medium term, the Board expects Frontier to continue to grow revenue by around 20 per cent on average per annum, with any annual growth rate variability largely driven by the number and scale of new releases in each year. The Board is comfortable with current analyst expectations for FY23 based on the expected performance of its existing games and the anticipated success with its planned new releases. 

Frontier expects to provide a trading update on FY23 in mid-September 2022, alongside the publication of its full audited FY22 financial results.

Newsletter Subscription

Stay informed of the latest news and features