Frontier Developments PLC (AIM:FDEV) shares shot up, gaining around 19% to 392p on Tuesday, after the indie game developer upgraded full-year revenue and profit guidance driven by the success of Jurassic World Evolution 3 and stronger sales across its wider games portfolio.
The Cambridge-based video games developer said it now expects revenue of around £103 million for the 12 months ending 31 May 2026, above previous guidance. Adjusted operating profit is expected to be around £16 million, which the company said is significantly ahead of previous guidance.
Frontier said cumulative sales revenue for Jurassic World Evolution 3 is ahead of Jurassic World Evolution 2 over an equivalent post-launch period, including through new content releases. The company added that delays beyond its control had affected further content releases for the game in the past month, though it is working to return to the planned content roadmap.
The profit upgrade also reflects higher-than-anticipated tax credits following the transition from the Video Games Tax Relief regime to Video Games Expenditure Credits, alongside stronger revenue and continued cost discipline.
Cash stood at £44.9 million at the end of April, up from £42.5 million at the end of May 2025, despite £15.4 million invested in share buyback programmes. Frontier said it acquired 3,947,854 shares during the period, reducing total voting rights by 10% and enhancing earnings per share for FY27 and beyond by 11%.