Frontier Developments, the developer behind games including Rollercoaster Tycoon and Elite Dangerous, is finally back in the black after cost saving measures triggered by a rough 2023.
The Cambridge-based developer reported an adjusted EBITDA of £500,000 for the year ending May 31, 2024, crediting the release of its new game, Planet Zoo: Console Edition, for boosting its bottom line.
The AIM-listed firm said in a trading update that it had managed to reduce its operating costs by around 20 per cent after making a loss of £4.6m during the previous period.
Frontier said it expected to close the financial year with revenue of approximately £89m and said it was confident it would remain profitable into 2025.
This optimism is buoyed by a series of new releases in the pipeline for the next three years, including the third Jurassic World game – which it won the publishing rights to in May – scheduled for 2026, and a third, unannounced CMS game which is planned for 2027.
Chief executive Jonny Watts said: “I am pleased to confirm an improvement in our financial performance for the second half of the financial year.
“It has enabled us to report an adjusted EBITDA profit for the financial year and an increase in our cash position.
“I’d like to thank our people for the positive turnaround we have achieved together in the last six months.
“We have started the new financial year reset and refocussed, with a clear strategy and sustainable cost base.
“We have a game portfolio that continues to deliver pleasing results and an exciting CMS-led roadmap ahead.
“I look forward to the launch of F1 Manager 2024 next month, and to revealing the details of our own-IP CMS game coming later in the financial year”.