Frontier continues transition to self-published developer

Frontier Developments was still transitioning to a self-published developer in the first half of the year, with the company continuing to make a profit through a period of significant investment.

The AIM-traded video game developer reported recognised revenues for the six months to 30 November 2015 of £10.9m, up 50% from the first half of the previous year.

Its Elite Dangerous game franchise was continuing to grow, with 1.2m units sold by the period end and 1.4m by December 2015.

Frontier Developments said it had made good progress through its transition to a self-published developer, which was due to complete with the release of its second self-published franchise Planet Coaster.

The company's investment in Planet Coaster was ongoing, with half of its development staff dedicated to the project. Associated revenues were to follow the game's launch in the fourth quarter.

That investment had an impact on the firm's profit for the period, which was down to £0.4m, from £1.9m a year earlier. Earnings per share were 1.2p, down from 5.7p.

EBITDA was up to £2.1m, from £0.5m.

"We are making good progress through our transition," said Frontier chief executive David Braben.

"All our development teams are now working on self-published projects and, with the release of Planet Coaster in Q4 2016, our investment phase will complete and we will be generating revenues from both our major franchises," he added.

Braben said the company remained in a good cash position, with net cash of £8.6m at 30 November, though that was down from £9.8m a year earlier.

Frontier Developments was now working with a number of industry partners to extend the reach of its franchises. It had recently added Microsoft and Amazon to its list of platforms.