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Frontier Developments PLC on Wednesday reported a ‘strong turnaround’ after swinging to profit in the first-half of financial 2025. The Cambridge, England-based video game maker said pretax profit was £4.4 million in the six months that ended November 30, swung from a loss of £33.1 million a year prior. Revenue dropped slightly to £47.3 million from £47.7 million year-on-year. This was line with expectations, the firm said. Frontier Developments cited cost-cutting measures for its return to profitability in the half-year. Research & development costs were reduced to £16.3 million from £48.1 million a year before. Sales & marketing costs were £5.0 million, down from £8.4 million. The firm also pointed to promotions such as its Steam winter sale, which drove revenue during the festive season. Sales over Christmas and New Year were the third highest on record, surpassed only by what the game developer called ‘the stay-at-home boosted years of 2020 and 2021’, during the Covid-19 pandemic. Frontier Developments said it is confident in delivering full-year revenue and profit in line with expectations. Shares were up 26% to 232.26 pence each midday Wednesday in London. The games company noted one recent launch, Planet Coaster 2, contributed 22% of half-year revenue, despite its release less than four weeks before the half-year end. The product is one of three construction and management simulation games, confirmed through a ‘strategic reset’ in financial 2023 and 2024. Frontier Developments said the strategy was backed by strong performance of existing CMS games in the half-year and anticipates the successful release of its third Jurassic World game in financial 2026. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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