UK-based video game company Frontier Developments PLC (AIM:FDEV) nosedived 40% to 600p after issuing a profit warning.
Frontier, behind games including Warhammer 40,000L Chaos Gate- Daemonhunters and F1 Manager 2022, said it expects its full-year operating profit to come in below market consensus forecasts of £19mln.
This is due to lower-than-expected sales of F1 Manager, general underperformance and uncertainty from Foundry, its arm which develops games alongside partner studios.
Frontier said it is still possible to surpass last year’s record revenue of £114mln.
However, it has revised expectations due to the challenging economic outlook and expects revenues of no less than £100mln, which has played into the revised profit guidance.
Chief executive Jonny Watts said it was “very disappointing” to be adjusting expectations.