Share in AIM-listed video games developer Frontier Developments LON:FDEV seem to be on the march again. Despite a parlous 12 months of it, the stock is now rallying, and is up over 40% in a month. Can the shares sustain this reversal of fortune though?
Gamers are razor-focused on Frontier Develpments’ schedule for the release of Jurassic World Evolution 3, which aims to push the boundaries of dinosaur park simulation. Both Jurassic World fanatics and seasoned park managers are being invited to dive into the ultimate Jurassic World Evolution campaign, featuring a sprawling world map filled with diverse new locations like Japan and Hawaii.
Jeff Goldblum reprises his role as the iconic Dr. Ian Malcolm alongside a cast of new and returning characters, as players balance competing human interests with the delicate integration of dinosaurs into the modern world.
Frontier Developments says that Jurassic World Evolution 3 will aunch on 21 October 2025 PC, PlayStation5, and Xbox Series X|S for a suggested retail price of £49.99/$59.99/€59.99 for the standard edition, and £64.99/$74.99/€74.99 for the Deluxe Edition.
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Jurassic World launch is welcome news for shareholders
The news will be welcomed by shareholders, who have seen the stock taking a battering over the course of 2024-25 with many false dawns. They will be hoping this is not another one.
We last looked at the company earlier this year, following half year numbers, when we noted that Frontier Developments’ adjusted earnings came in at £4.4m, a significant 190% turnaround from the negative earnings a year ago. This flowed into the P&L line, with Frontier making a £4.5m profit compared to a £33.3m loss a year ago – a 113% improvement. The games maker also increased cash on hand by over £10m in a year to £27.2m.
At the time, Katie Cousins, an analyst for broker Shore Capital, said she was broadly content with the latest set of numbers: “FDEV has delivered the group’s third highest festive sales performance, surpassed only by the COVID-impacted years (2020/2021). Additionally, the board remains confident in delivering full-year revenue and profitability for FY25F in line with expectations.”
Frontier Developments has been working hard to revive its fortunes. In the past year the company cut costs and reorganised the business. Frontier launched two titles in 2024, F1 Manager and Planet Coaster II, the latter a follow-up sequel to one of Frontier’s most popular titles.
Success of Jurassic World will be crucial
Like many other video games developers, Frontier Developments is judged heavily on its pipeline of upcoming games and analysts are razor-focused on anything likely to be launched within the next six months. The confirmed launch date of Jurassic World Evolution 3 will be a relief for shareholders and does seem to be generated renewed interest in the market.
The company is also forecasting better revenues, at around £90m which would beat last year, by a margin. Management is saying they are seeing strong performance across their existing games portfolio as well. Panmure Liberum said last month that it was raising Frontier’s EBITDA forecast from nil to £7.4m, based in part from the sale of the company’s remaining Foundry games for £3.5m. Panmure rated Frontier a BUY with considerable upside on the price.
Shore Capital said that FDEV continues to perform well against an uncertain and crowded backdrop, and ongoing development support across the wider franchises appears to be sustaining consumer engagement. Things seem to be looking up.
A further trading update is expected on Wednesday (11 June).
