Frontier Developments PLC (LON:FDEV) saw its shares move higher on Friday after the video game publisher said it expects to deliver revenues “within the top half” of analyst forecasts for its 2021 financial year.
In an update, the group also unveiled a series of upcoming planned game releases for the financial year to May 31, 2021, including the release of its Jurassic World Evolution game on Nintendo Switch consoles and two new games from its Frontier Foundry label, Lemnis Gate and Struggling, with the former to launch in early 2021 while the latter is already available on digital PC game store Steam.
READ: Frontier Developments higher as it starts new financial year “confidently”, lays out upcoming game releases
The new games add to Frontier’s existing release schedule, which includes an update to its Elite Dangerous series scheduled for release in the first quarter of 2021, the release of a console edition of its Planet Coaster title, and further update packs for its Planet Zoo game.
As a result, the company said it is “very well placed for the future”, adding that sales across all of its games in the initial period of the 2021 financial year have been “consistent with expectations”.
Taking predicted and actual sales into account, Frontier said it is on track to deliver revenues in the top half of the current range of analyst estimates, which currently range between £83mln-£95mln for its current year.
“We’ve announced further releases to an already exciting line-up for [the 2021 financial year]. Our team has done an amazing job developing strong releases for all four of our existing titles, and I am also looking forward to seeing the reaction to our first two Frontier Foundry games – Struggling and Lemnis Gate”, said chief executive David Braben.
In a note, analysts at broker Shore Capital upped their fair value for the stock to 2,000p from 1,900p and retained their ‘hold’ rating, saying they believed the company’s broader games portfolio will “enable the company to smooth earnings and diversify through its strong pipeline of internally developed games as well as through the publishing arm”.
“We would also expect the strategy to remain consistent with historical launches from Frontier; a base launch followed by several updates and additional content released post-launch to support the game and create further revenue”, the broker added.
The shares were up 8.2% at 2,250p in mid-morning deals.
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