Frontier Developments PLC (AIM:FDEV) shares rolled 9% higher to 251p after the Planet Coaster and Jurassic World Evolution video games maker said it expected revenues and profits to be ahead of expectations.
The Cambridge-based company said revenue was on track to be roughly £90 million for the year to 31 May 2025, versus £89.3 million a year before and ahead of analyst expectations that range from £85 million to £89 million.
This reflected strong performances across its game portfolio, it said, with a gain of £3.5 million on the sale of the publishing rights for the Foundry game Stranded: Alien Dawn helping deliver stronger-than-expected profitability and cash.
More details will be provided in another trading update on 11 June, Frontier said.
Analysts at Shore Capital said: "We are pleased to see this progress, given the slower-than-hoped-for start from Planet Coaster 2 earlier in the fiscal year, which led to us downgrading our forecasts alongside the interim results."
There were no major titles released in the second half, with the period thought to have seen more focus on investing in the upcoming pipeline.
"FDEV continues to perform well against an uncertain and crowded backdrop, and ongoing development support across the wider franchises appears to be sustaining consumer engagement.
"While the smaller portfolio compared to some of the other listed UK peers creates a more lumpy revenue performance and title risk, we believe the recent work by management has allowed for a focused and efficient model, which should support organic investment for future launches.
"We continue to view the Group as undervalued, trading at less than 1x revenue, with an improving profit base and a high proportion of cash compared to the market capitalisation."