Cambridge games company Frontier Developments has built an incredible position of strength that will secure sustained long-term growth for existing and future titles.
Its full year results to May 31 saw market cap sustained at £1.05 billion and sent the UK share price credibly higher. But it is the platform built for long-term growth that makes this company so exciting.
Frontier’s established portfolio of genre-leading games, supported by the nurturing approach to post-release development, delivered record financial results in FY21, through continued strong engagement with its games added to downloadable content on new and existing platforms.
Revenue of £90.7 million – eclipsing the previous year’s £76.1m – reflected substantial contributions from all four of the company’s existing game franchises, together with its first revenues from Frontier Foundry, the group’s games label for third-party publishing.
Based on the anticipated ongoing performance of the existing portfolio, combined with an exciting new release schedule for FY22, the board’s projected revenue range for FY22 is £130 million to £150 million, implying an annual growth rate of 43 per cent to 65 per cent above the record revenue reported for FY21.
Looking further out, for FY23, the board’s projected revenue range is £160m-£180m, based on the anticipated performance of current and future game franchises, together with a growing contribution from the games label for third-party publishing, Frontier Foundry.
Chief executive David Braben, said: “Our team did a terrific job during FY21, creating new content and delivering new platforms for our existing games to support and grow our passionate player communities.
“We were delighted to achieve record financial results in FY21 from our existing portfolio of games franchises. Our team has also been busy on our future titles, and we look forward with confidence based on our strong existing portfolio and our exciting roadmap of new releases.”
