2 April 2024
Frontier
Developments plc
Good
progress and strengthening cash position
Frontier Developments plc (AIM:
FDEV, 'Frontier' or the 'Company'), a leading developer and
publisher of videogames based in Cambridge, UK, provides an update on trading including the successful
release of Planet Zoo: Console
Edition, reports on the sale of the publishing rights for
RollerCoaster Tycoon 3 to
Atari, and highlights an improving cash position.
Trading
Sales across Frontier's portfolio since
publication of its interim results in January 2024 have been
in-line with expectations, with the largest contributions being
provided by Frontier's creative management simulation ('CMS')
games, led by Jurassic World
Evolution 2 and Planet
Zoo.
On 26th March
Planet Zoo, which was
previously available on PC only, released successfully on Xbox
Series X|S and PlayStation 5 to positive critical
reviews and strong player engagement. Total sales up to and
including the day of release were greater than the sales achieved
by Planet Coaster when it
came to consoles on 10th November 2020.
The successful launch performance of
Planet Zoo: Console
Edition was supported by three product options, including an
Ultimate Edition which provides access to a Season Pass covering 14
future content packs over the next 12 months. Strong sales of the
Ultimate Edition at launch will generate cash in FY24 but revenue
will be split between FY24 and FY25, since a portion of the revenue
will be deferred into FY25 as content is delivered in that
financial year.
RollerCoaster Tycoon 3
publishing rights
Frontier has a long track-record of
success in rollercoaster simulation games, including the
development of the 2004 game RollerCoaster Tycoon 3, working in
collaboration with Chris Sawyer, the original architect of the
RollerCoaster Tycoon franchise. Frontier went on to develop the
ultimate coaster park simulation and BAFTA-nominated Planet Coaster, which quickly became
one of the top selling PC games of 2016 when it released in that
year. Planet Coaster gives
players unlimited freedom to build rides and scenery piece by
piece, with advanced management gameplay and a connected global
village where everyone can share in the creativity of players
around the world. Subsequently, many successful PDLC packs and a
console edition were launched.
The publishing rights for
RollerCoaster Tycoon 3
returned to Frontier in 2018 under the original development
agreement, and since then Frontier has been publishing the game on
PC, Mac, iOS and Nintendo Switch under the Frontier Foundry games
label, generating profit (net sales receipts after deduction of all
costs) of approximately US$ 1.5 million per year. On
15th March 2024 Frontier sold the publishing rights for
RollerCoaster Tycoon 3 to
Atari Inc ('Atari') to enable Atari to become the sole publisher of
all major titles within the Rollercoaster Tycoon franchise. Total
consideration for the sale of the publishing rights was agreed at
US $7m, made up of US $4 million of up-front cash and US $3 million
of deferred cash consideration. No value was attributed to the
publishing agreement on Frontier's balance sheet prior to the
transfer. The proceeds of the disposal will be utilised by the
Company for general working capital purposes.
Cash position
Frontier's cash position grew to
£23.4 million as of 31st March 2024, up from £19.9
million as at 31st December 2023. Cash received during
that three month period included the US $4m of up-front
consideration due from the sale of the RollerCoaster Tycoon 3 publishing
rights and the first tranche of the Video Games Tax Relief cash
credit related to the FY23 UK tax returns. Cash receipts from the
March launch of Planet Zoo:
Console Edition will be received during April and
May.
Outlook
The Board remains comfortable with
the financial guidance previously provided for FY24, before taking
into account the incremental profit and cash from the sale of the
RollerCoaster Tycoon 3
publishing rights. The
Board expects to provide an update on the outturn for the financial
year in June 2024.
Enquiries:
Frontier Developments +44 (0)1223 394 300
Jonny Watts, CEO
Alex Bevis, CFO
Peel Hunt -
Nomad and Corporate Broker +44
(0)20 3100 2000
Neil Patel / Paul Gillam / Kate
Bannatyne
Liberum -
Joint Corporate Broker +44 (0)20
3100 2000
Max Jones / Nikhil Varghese
Teneo
+44 (0)20 7353 4200
Matt Low / Arthur
Rogers
About Frontier Developments
plc
Frontier is a leading independent
developer and publisher of videogames founded in 1994 by David
Braben, co-author of the iconic Elite game. Frontier uses its
proprietary COBRA game development technology to create innovative
genre-leading games, primarily for personal computers and videogame
consoles.
Frontier's LEI number:
213800B9LGPWUAZ9GX18.
www.frontier.co.uk