The Jurassic World Evolution and Elite Dangerous developer has turned middling reception of its latest title into considerable success thanks to ongoing support across its franchises.
Frontier Developments managed to almost triple their revenue from £19 million to £64.7 million between November 2017 to November 2018, a 240 percent increase, according to the company’s interim financial report for 2019.
Frontier Developments experienced similarly impressive growth when it comes to operating profit, margin percentage, and cash flow. Between November 2017 to November 2018, Frontier’s operating profit increased from £3 million to £17.2 million, a 473 percent increase. Operating margin percentage jumped from 16 percent to 27 percent, and operating cash flow jumped from £1 million to £16.5 million, a whopping 1550 percent increasing in the same period.
Despite mixed reviews for Jurassic World Evolution, Frontier credits the licensed park-building simulator (alongside ongoing support for Elite Dangerous and Planet Coaster) for the strong showing. Jurassic World Evolution released in June 2018.
Frontier Developments says that Jurassic World Evolution sold 1 million units within five weeks, and 2 million units within seven months.
"In January we celebrated our 25th anniversary, and I am very proud of all of our achievements during our first 25 years,” Frontier Developments Chief Executive David Braben said in a statement. “In the last five years we have successfully transitioned from a trusted 'work-for-hire' developer to an established self-publisher with a portfolio of three released games franchises, a substantial and world-class team, and strong partnerships. It's particularly pleasing that our most recent launch, Jurassic World Evolution, has been our biggest to date. However, I believe we are still at the start of our journey; we have a lot of exciting opportunities ahead of us driven by our resources, capability and experience, our strong partnerships, and the widening opportunities for games companies within the ever-changing entertainment industry."
Planet Coaster and Elite Dangerous have sold 2 million and 3 million base units respectively since launch.
Frontier Developments also stated that the company is working on a fourth franchise based on the company’s own unannounced IP, with a release planned for later in 2019.
As is usual during financial report season, Frontier Developments’ stock has seen a tumultuous bit of spiking and dipping. By February 6, Frontier’s stock jumped from 846 GBX to a peak of 1,003.11 GBX the same day, then dipped back down to 984 GBX by the morning of February 7.
Frontier has a 12 month low of GBX 288 ($3.76) and a 12 month high of GBX 1,540 ($20.12).
Other major game companies typically experience a dip in stock around their own financial reports. EA had its own rocky quarter after a poor performance from Battlefield V.
Frontier has also experienced a slight shift in its board of directors, with David Walsh leaving his role as COO and executive director in September 2018. Walsh transitioned to a non-executive director role while shifting his focus to a start-up outside of the games industry. Frontier’s board now includes four non-executive directors and and three executive directors.
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