Search Share Prices
Frontier Developments revenues grow but margins tighten
British video games company Frontier Developments posted a fall in operating profit despite a slight improvement in revenue in its interim results for the six months leading to 30 November 2017 released on Tuesday.
Frontier managed to move revenue ahead 4.97% to £19m over the half, mostly thanks to continued interest in its Elite Dangerous and Planet Coaster titles, but with margins dropping from 74% to 69%, operating profits dropped 16.67% to £3m.
However, EBITDA moved ahead £200,000 to £6m, and net cash balance soared from £6.7m to £29.1m throughout the period.
David Braben, chief executive, said, "Our strategy of supporting and nurturing our game franchises continues to deliver, with sales in the first half of the year sustaining last year's record-breaking levels. Our extensive and expanding player community continues to enjoy the evolving story within Elite Dangerous and the endless creativity of Planet Coaster, particularly with the addition of the 'Spooky' and 'Adventure' add-on packs."
"We look forward to our next major milestone; the release of Jurassic World Evolution, our third franchise, in summer 2018. Beyond this we are working on plans to further scale up our business to accelerate the frequency of our major releases," he added.
Earnings per share declined to 8p from the 10.7p posted a year earlier.
As of 1020 GMT, shares had lost 4.52% to 1,360.58p.