Frontier Developments has recorded a "strong" performance in the second half of the year, resulting in full-year results coming in ahead of expectations.

The Cambridge-based videogames developer stated that a "strong back-catalogue" performance in H2, and the successful release of Planet Zoo: Console Edition in March, contributed to delivering £89m in full-year revenue.

During H2, Frontier’s annual operating costs were reduced by approximately 20% through an organisational review, which completed as planned in March.

The firm said its adjusted EBITDA for the 2024 financial year is expected to be in profit, with a provisional profit of approximately £500,000, after recording a loss of £4.6m in the 2023 financial year.

Chief executive officer at Frontier Development, Jonny Watts, said: "I am pleased to confirm an improvement in our financial performance for the second half of the financial year. It has enabled us to report an adjusted EBITDA profit for the financial year and an increase in our cash position. I'd like to thank our people for the positive turnaround we have achieved together in the last six months."

In its outlook, the firm said that it expects to see more games released across the year, with analyst expectations looking to reach £87m in revenue for the 2025 financial year.

Furthermore, the group added that it is confident it can achieve profitability in the financial year, with a "continued focus on driving return on investment and tight cost control".

Watts added: "We have started the new financial year reset and refocussed, with a clear strategy and sustainable cost base. We have a game portfolio that continues to deliver pleasing results and an exciting CMS-led roadmap ahead. I look forward to the launch of F1 Manager 2024 next month, and to revealing the details of our own-IP CMS game coming later in the financial year."

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