Frontier Developments (LSE:FDEV) reported robust financial results for FY25, with revenue climbing to £90.6 million and operating profit recovering to £12.7 million. Growth was driven by the company’s focus on Creative Management Simulation (CMS) games, particularly the successful launch of Planet Coaster 2, which boosted revenue in the genre by 25%. A lower operating cost base, strong trading performance, and proceeds from the sale of publishing rights contributed to a cash position of £42.5 million. Looking forward, Frontier plans to release Jurassic World Evolution 3 in FY26 and has two additional CMS titles in development for FY27 and FY28, signaling a strong pipeline and promising growth trajectory.
The company’s outlook is supported by positive technical indicators and recent corporate developments. Despite some financial performance challenges, Frontier shows solid momentum, with strategic initiatives highlighting its potential for continued expansion. Its valuation remains attractive, aided by a low P/E ratio.
About Frontier Developments
Founded in 1994 by David Braben, Frontier Developments plc is a leading independent video game developer and publisher based in Cambridge, UK. The company utilizes its proprietary COBRA game engine to develop innovative, genre-defining games for PCs and consoles.
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