Hopes are far from high for video game publishers Frontier Developments PLC (AIM:FDEV) and Team17 Group PLC (AIM:TM17) ahead of their respective results next week.
Both companies saw their shares soar to all-time highs on the back of strong demand during pandemic lockdowns, but seemed to have over-extended themselves as well as investor expectations.
Shares in Team17 have more than halved over the past 12 months, with the sharpest fall coming in November, when it warned that cost overruns and accounting impairments will reduce earnings, offsetting revenues modestly ahead of expectations.
It guided to full-year adjusted EBITDA of at least £28.5 million, which compares to £48.8 million in 2022 and £35.8 million in 2021.
Frontier has been even worse, losing three-quarters of its value in the past year, the latest news being that its game based on the Warhammer franchise, Realms of Ruin, had made a disappointing start.
This meant its previous revenue guidance of £108 million would not be met, with sales of £80-95 million the new guidance, with underlying losses of £9 million still predicted.