Frontier Developments (FDEV:AIM) £11.05
Founded in 1994 by CEO David Braben, co-author of the seminal Elite game, Frontier
Developments’ (FDEV:AIM) shares have soared since its July 2013 AIM debut at a 127p issue price.
Chinese internet-to-interactive entertainment titan Tencent put its stamp of approval on Frontier last summer, investing £17.7m in return for a 9% stake, to help Frontier attack the vast Chinese market and scale-up by increasing the frequency of major releases.
Frontier Developments enjoyed material forecast upgrades for the year ending 31 May 2019 following a positive trading update (3 Jul), in which it flagged early success with its third game franchise, Jurassic World Evolution, which has quickly passed 1m units sold.
Significantly, the upgrade was based on forecasts for the Jurassic World title, together with the expected performance of Frontier’s first two franchises, Elite Dangerous and Planet
Coaster. Both are performing well and in addition to producing its own games, Frontier will also consider third party publishing to accelerate its growth plan, namely controlling the promotion and distribution of other developers’ games.
FinnCap analyst Lorne Daniel’s upgraded full year to May 2019 forecasts point to a leap in sales from £34m to £75.3m, sending adjusted profit before tax roaring higher from £2.6m to £16.5m, with potential for further upgrades if success continues. (JC)