Frontier Developments surges on sales and margin update

AIM-listed video game publisher Frontier Developments (LON:FDEV) saw its shares shoot up by 11.90% to 995.90p (as of 15:50 GMT) after it announced a three-fold increase in revenues for the 6 months to 30th November. Operating margins improved from 16% to 27%, leading to an almost eight-fold improvement in operating profits.

Chief executive David Braben commented: “In January we celebrated our 25th anniversary, and I am very proud of all of our achievements during our first 25 years. In the last five years we have successfully transitioned from a trusted ‘work-for’-hire’ developer to an established self-publisher with a portfolio of three released games franchises, a substantial and world-class team, and strong partnerships. It’s particularly pleasing that our most recent launch, Jurassic World Evolution, has been our biggest to date.

However, I believe we are still at the start of our journey; we have a lot of exciting opportunities ahead of us driven by our resources, capability and experience, our strong partnerships, and the widening opportunities for games companies within the ever-changing entertainment industry“..