Video game developer Frontier Developments PLC (LON:FDEV) saw operating profit and revenue fall last year, but has told investors it is optimistic about the future.
Operating profit for the year to 31 May fell to £1.2mln from £1.6mln the year before, while revenues dipped more than 6% to £21.4mln.
The company said the weaker performance was expected as it repositions itself as a business to consumer developer, and was upbeat about its outlook.
Frontier told investors that for the first time ever nearly all of its revenue for the year came from self-publishing activities, including over one million franchise unit sales of its Elite Dangerous game.
It added that the first phases of testing for its second franchise, Planet Coaster, have been “received well” with over 50,000 pre-order sales already taken, and is on track for a full launch in November.
"We have successfully transformed our business model, continued to improve and expand the Elite Dangerous offering, and are making good progress towards the release of Planet Coaster,” said chief executive David Braben.
“The release of Planet Coaster will complete our transition, and the positive feedback we are seeing from the Alpha process gives us confidence it will drive revenues to a new level."
The AIM-listed firm said this release, along with trading over the holiday period, would dictate results for next year, but is confident Planet Coaster will be a success.
Frontier added that trading since the end of the period has “exceeded the board’s expectations”, despite it being a traditionally quiet quarter, and is “excited” for the coming year.
Shares were up 2.5p, or 1.5%, to 172p.