Computer game group Frontier loses a quarter of its value after being hit by monster £1.2m loss
Computer game group Frontier Developments lost a quarter of its value after it crashed into the red.
The Cambridge firm’s stock fell 25.3 per cent, or 448p, to 1324p – the lowest level in 21 months – after a loss of £1.6million for the six months to the end of November, compared to a £6.5million profit in the same period in 2020.
Revenues, meanwhile, increased to £49.1million from £36.9million a year ago.
Losses: Frontier Developments, which publishes games based on the Jurassic Park film series (pictured) cut revenue guidance for the full year to between £100m and £120m
Frontier, which publishes games based on the Jurassic Park film series as well as sci-fi simulator Elite Dangerous, narrowed revenue guidance for the full year to between £100million and £120million compared to previous forecasts of £110million to £130million.
It has pushed back the release date of a strategy game, based on Warhammer battle figurines, to 2024 to improve it.
That means revenues for 2023 are expected to be between £130million and £160million, down from the previous £160million to £180million forecast.
Broker Liberum trimmed its target price for Frontier’s stock to 2700p from 2870p but said it was ‘well positioned’ to benefit from growth in the computer game industry.