Trading Update

Frontier Developments plc (AIM: FDEV, 'Frontier', the 'Group' or the 'Company'), a leading developer and publisher of videogames based in Cambridge, UK, provides an update on trading for Frontier's financial year 2024 ('FY24'), the 12 months to 31 May 2024.

Since the last trading update on 2 April 2024, Frontier's portfolio has performed well, with pleasing contributions from all games. CMS titles have performed particularly well, in part due to a strong Frontier publisher sale on leading PC channel Steam from 1 to 15 April. On consoles, Planet Zoo: Console Edition continued to sell well during April following its successful release in March.

Following these strong performances across the whole portfolio in April, the Board currently project revenue for FY24 of at least £85 million.

Frontier's financial performance for FY24 as measured by Adjusted EBITDA* is now anticipated to be better than previously guided, based on a higher gross margin percentage from a greater proportion of own-IP revenue, lower operating costs following the completion of the Organisational Review, and the gain from the sale of the RollerCoaster Tycoon 3 publishing rights to Atari as announced on 2 April 2024. Based on revenue of at least £85 million, the Board anticipates an Adjusted EBITDA* loss for FY24 of £5 million or better. Under IFRS accounting standards, the sale of publishing rights to Atari is treated as 'other operating income' rather than 'revenue', but it does contribute to Adjusted EBITDA.

The Board expects to provide a further update on the outturn for the financial year in June 2024.

Jonny Watts, Chief Executive Officer, said:

"I am pleased to announce that our expectations for our financial performance in the current financial year have improved following the excellent reception to Planet Zoo's arrival on console and a good ongoing performance from our other CMS titles. We are making strong progress following the reset of our strategy during 2023 and I'd like to thank our people for their support during a difficult period in Frontier's thirty year history. We look to the future with renewed confidence."