Jurassic World game developer’s shares collapse on profit loss and narrowing revenue
Videogame publisher Frontier Developments’ shares collapsed today after swinging to a loss, which prompted the board to narrow its revenue expectations.
Frontier lost some £1.3m in the six months to November 30, down from nearly £7m in the same period the year before.
Shares dove more than 25.5 per cent to 1,320.00p per share by close of play.
“We have had an unprecedented couple of years because of Coronavirus and the resulting changes, both positive and negative,” CEO and founder David Braben said.
The company has reaped the rewards of the pandemic-induced videogame boom, with a homebound clientele itching for entertainment.
Frontier recorded revenue of more than £49m in the six-month period, according to its interim results, up from £36.9m in 2020.
While the company is still expected to secure a revenue of around £100m to £120m for the full year, the interim results come off the back of a poorer-than-expected performance for its Jurassic World Evolution 2 game in late November.
The developer’s share price plunged by more than a third after missing its sales targets, which the company put down to a “crowded release window”, with a number of titles being launched in the same period.
“Whilst initial sales on PC have been lower than we targeted, the game is already being enjoyed by around half a million players across all platforms, and showing very strong critical and player reviews,” Braben said in a statement at the time.
The board hopes to snag a higher revenue in the year to come, between £130m and £160m, as it awaits the release of Frontier’s Warhammer Age of Sigmar, which has been pushed back until next year.