Frontier Developments PLC on Wednesday reported its annual loss has widened following ‘one of the most difficult periods’ in Frontier’s history, but remains optimistic for 2025 after a strategy reset.
The Cambridge, England-based video games developer and publisher said revenue for the 12 months ended May 31 was £89.3 million, falling 15% on-year from £104.6 million. It made a pretax loss of £28.4 million, widening from £26.5 million in 2023.
Cost of sales was down 25% to £28.0 million from £37.2 million.
The first half of 2024 saw ‘disappointing financial performance’ from underperforming non-CMS, or creative management simulation, games, said Frontier. The second half, by comparison, brought ‘strong’ CMS performances, including the release of Planet Zoo: Console Edition.
The company said it was an ‘encouraging start’ for financial 2025, and the board remains confident in delivering profit next year.
Chief Executive Officer Jonny Watts said: ‘As we enter our thirtieth year in the industry, we have reset our portfolio strategy and are refocussed, pulling on our wealth of experience to deliver what we do best through our exciting CMS roadmap. This year has been a challenging period for Frontier, so I’d like to thank our incredible team for rising to the challenges following our strategic reset, and for their dedication and commitment to getting us into a stronger and more sustainable position.
‘I look forward to the release of our highly anticipated sequel, Planet Coaster 2, which brings a wave of all-new water park gameplay, innovative features and creative possibilities. Our local players and community should be braced and ready for a big splash this autumn as we build on our Planet Coaster franchise.’
Shares in Frontier Development were down 7.2% at 223.75 pence each in London on Wednesday afternoon.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
