Video games developer Frontier Developments plc (LON:FDEV) has raised its full year guidance following the successful launch of its second franchise 'Planet Coaster'.
The group predicts 2017 revenue will jump 75% to £37.3mln, slightly ahead of its previous guidance. Operating profit margins are expected to reach top end of its forecast range of 15-20% and that operating profit would surge 500% to £7.2mln.
Frontier said the improved performance was driven by the release of the 'Planet Coaster' video games in November 2016.
The first game franchise, 'Elite Dangerous', continues to perform well and will available to a new audience when it is released on PlayStation 4 later this month, the group added.
“We now have two strong franchises in the market and have successfully transitioned to a self-publishing business model, proving our ability to launch franchises,” said chief executive, David Braben.
“Our third franchise, which is based on an enduring Hollywood movie IP of global renown, is scheduled for release in calendar 2018, and we will provide more details about this exciting project later this year."
The company held cash balances of £12.6mln at 31 May 2017, up £4.0mln on the previous year.
Shares rose 6.4% to 446.0p in morning trading.