News Column

Frontier Developments Investment In 'Elite' Hits Revenues, Earnings

June 19, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Frontier Developments PLC said Thursday that it has seen a reduction in headline revenue and earnings before interest, tax, depreciation and amortisation, as it had planned, as it invested in its self-published title 'Elite: Dangerous' in the year to end-May.

However, it remains confident it will see much greater returns on the product.

The video game developer said it has continued to make good progress in transitioning its business from a video game developer for external publishers towards self publishing and utilising its Cobra technology during the year.

During the year Frontier Developments worked on several games, including 'Zoo Tycoon' for Microsoft Corp's new Xbox One console, and 'Coaster Crazy Deluxe' for Nintendo Co Ltd's WiiU console and the Android iOS operating system. The new titles both used its Cobra game development platform.

It has so far raised GBP3.0 million on crowd-funding website Kickstarter for the 'Elite: Dangerous', alongside its own investment, and recently demonstrated the game at the E3 gaming conference in Los Angeles at the start of June.

Frontier Developments said it is working on three further unannounced projects for external publishers worth a combined USD12 million, currently scheduled for release in the 2014/15 financial year.

It is also working on a new version of 'RollerCoaster Tycoon 3' in an agreement with Atari Inc.

As at May 31 the company had gross cash of GBP8.6 million.

"We continue to transition the business and look forward to further building on our reputation for consistent delivery of innovative, high quality games and technology in 2014," said Chief Executive David Braben in a statement.

The company provided no revenue or EBITDA figures. It said it would release its full results in early September.

Shares in Frontier Development were trading down 0.9% at 275.00 pence Thursday morning.

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Source: Alliance News

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