Frontier Developments PLC (AIM:FDEV) reported record revenues boosted by the successful release of Jurassic World Evolution 2 alongside its established portfolio of games and new titles under its Foundry third-party publishing label.
The Cambridge-based developer and publisher of video games said full-year 2022 revenues were £114.0mln, up 26% from 2021 as expected.
But, as indicated earlier this year, operating profits slumped to £1.5mln from £19.9mln reflecting the previously announced one-off non-cash accounting charge following the under-performance of the major Elite Dangerous: Odyssey expansion which was released in May 2021.
Under the Foundry label three new games were released, of which 'Warhammer 40,000: Chaos Gate - Daemonhunters' was the biggest title to a "very positive" reception, while three more titles are due for release in the coming year.
Cash resources remain strong with £38.7mln at May 31, 2022, a fall from last year’s level of £42.4mln reflecting a greater investment in future game releases, working capital movements, and the £5mln purchase of shares by the employee benefit trust in April.
Frontier said it had made a “pleasing” start to the 2023 full year and remains confident of delivering on current analyst expectations.
Over the medium term, the company said it expects to continue to grow revenue by around 20% on average per annum, with any annual growth rate variability largely driven by the timing and scale of new releases in each year.
Jonny Watts, the new chief executive officer since last month, said: “We look forward with confidence based on our strong existing portfolio, and our exciting roadmap of new releases which includes unrevealed future developments."
Shares in the company rose 4.8% to 1,248p.