Frontier Developments PLC (AIM:FDEV) shares traded at 480.65p, up 8%, as profit beat June’s update and the games developer announced a £5 million special dividend.
Supporting the rise, financial year 2026 adjusted operating profit climbed 62% to £21.4 million, reflecting strong trading and higher tax credits, Shore Capital said.
Meanwhile, revenue grew 16% to £104.8 million, supported by Jurassic World Evolution 3 and the Planet franchise, a strong performance Shore had already expected.
Alongside those results, cash reached £51.4 million at the end of August, up from £44 million at the May year-end, with no debt.
With a positive start to financial year 2027, Frontier announced a special payout of 14.1p per share and flagged scope for further share buybacks.
On the games portfolio, Jurassic World Evolution 3 has sold more than 1.4 million units and generated about £62 million, up from £46 million in June.
In its assessment, Shore retained 'buy' with a 650p target, while leaving financial year 2027 forecasts unchanged given Jurassic World Evolution 3’s tough annual comparison.
Looking ahead, the broker sees scope to beat its roughly £23 million revenue assumption for Planet Zoo 2 if the sequel replicates the original’s success.
The next test arrives on 13 October with Planet Zoo 2’s launch, which Shore calls 'the biggest potential upside risk to our numbers'.
