Frontier Developments share price rises as bounceback is unveiled

The stock rose almost 15p and more than 5.5 per cent to 279.62p as the company set out how strongly it had rallied since its April 2 update.

It says its portfolio has since performed well, with pleasing contributions from all games. CMS titles have performed particularly well, in part due to a strong Frontier publisher sale on leading PC channel Steam from 1 to 15 April.

On consoles, Planet Zoo: Console Edition continued to sell well during April following its successful release in March.

Following these strong performances across the whole portfolio in April, the board projects revenue for FY24 of at least £85 million.

Frontier's financial performance for FY24 as measured by Adjusted EBITDA is now anticipated to be better than previously guided, based on a higher gross margin percentage from a greater proportion of own-IP revenue, lower operating costs following the completion of the organisational review and the gain from the sale of the RollerCoaster Tycoon 3 publishing rights to Atari as announced on April 2.

Based on revenue of at least £85m, the board anticipates an Adjusted EBITDA loss for FY24 of £5m or better.