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Highlights

  • FDEV’s FY25 revenue rose to GBP 90.6 million, driven by performnace of  CMS franchise.
  • The company expects Adjusted EBITDA to rise to GBP 8–9 million, up from GBP 0.9 million in FY24.
  • FDEV plans to launch a share buyback programme of up to GBP 10 million.

Frontier Developments plc (LSE:FDEV) is video game developer and publisher and has issued a trading update for the financial year ended 31 May 2025 (FY25), including provisional unaudited financial results. The company reported a modest increase in revenue and significantly improved profitability, driven by its portfolio of Creative Management Simulation (CMS) games.

The company’s revenue for FY25 rose to GBP 90.6 million from GBP 89.3 million in FY24, with CMS games contributing 77% YoY of the total, up from 62% YoY in the prior year. The company’s CMS franchises Planet Coaster, Planet Zoo, and Jurassic World Evolution saw revenue growth, with Planet Coaster nearly tripling sales year-on-year following the release of Planet Coaster 2 in November 2024.

Profitability improved markedly, with adjusted EBITDA estimated between GBP 8 million and GBP 9 million, compared to GBP 0.9 million in FY24. This increase reflects higher gross margins, a lower operating cost base, and a GBP 3.5 million gain from the sale of publishing rights for the game. Adjusted Operating Profit, which Frontier will use as its primary financial metric from FY26, is expected to reach GBP 11–12 million in FY25, up from GBP 4.1 million the previous year.

Cash and cash equivalents grew by GBP 13 million during the year, reaching GBP 42.5 million as of 31 May 2025.

The Board has proposed a share buyback programme of up to GBP 10 million, subject to shareholder approval at a general meeting scheduled for 27 June 2025. The initiative follows a review of the Group’s capital allocation strategy, balance sheet position, and prevailing share price.

Looking ahead, the company is preparing for the release of Jurassic World Evolution 3 on 21 October 2025. Frontier plans to support its CMS franchises with continued content updates and development. Planet Zoo revenue rose 2% YoY in FY25 following the release of a console edition in March 2024, while Jurassic World Evolution revenue remained near prior-year levels. Elite Dangerous, a non-CMS title, saw a 76% YoY increase in revenue driven by new content and greater player engagement.

Frontier has established an Executive Board comprising senior leadership from development, publishing, operations, and other core departments. The Executive Board will be chaired by Chief Operating Officer James Dixon, who has stepped down from the main Board to focus on day-to-day operations.

Management noted that the business is beginning FY26 with confidence, supported by a steady performance in FY25 and a portfolio of active and upcoming titles. The shift to reporting Adjusted Operating Profit is intended to give shareholders better insight into cash generation and financial health, including the impact of industry tax reliefs.

Frontier Developments shares were trading flat at GBX 270.00 per share as of 11 June 2025.