The company has released its financial results for the last six-month period and cited that early sales of Jurassic World Evolution 2 that were “lower than expected” were a reason for the drop.
Frontier Developments has disclosed its financial results for the past six months up to November 30, 2021, and reported a £1.7 million ($2.3 million) net loss for the first two quarters of the fiscal year. In comparison, in 2020 the company displayed a £5.8 million ($7.9 million) net profit for the same period.
The video game maker and publisher sees the reason for it in an urge to double marketing expenses and sales caused by the launch of Jurassic World Evolution 2. Besides, net research and development expenses increased 91% from £9.7 million to £18.6 million. However, the release of the game in November and the sustainable performance of the firm's existing games lead to sales growth.
Frontier Developments admitted that the title's sales at the launch were lower than the firm targeted but the console sales met the company’s expectations. The company also reported revenues of £49.1 million ($67.1 million) for the six-month period ended in November 2021, showing a 33% increase on £36.9m in the first half of 2020.
The company now anticipates revenues landing between £100 million ($136.7 million) and £130 million ($177.7 million) for the 12 months period ended May 31, 2022. Frontier Developments also confirmed that Jurassic World Evolution 2 is about to reach 1 million sales since the launch. In the report, the company also claimed that EBITDA figure slightly lowered compared with the comparative period in the prior year from £14.1 million in H1 FY22 to £15.5 million in H1 FY21.
Nonetheless, Frontier is sure that they have "excellent prospects for sustainable long-term growth based on the longevity of [the company’s] existing portfolio and ... future development and publishing plans, underpinned by [the] world-class and growing team".
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