Net cash balance (£M)
Operating Profit (£M)
Deferred Income (£M)
Adjusting Operating Result* (£M)
Adjusted LPS/(EPS)* (P)
* See the PDF download of our Strategic Report and page 24 for the reconciliation to the operating profit.
"We have delivered another great year of progress towards our goal of earning revenue from multiple self-published franchises."
We have had our first full year with Elite Dangerous, selling over one million franchise units in the period. At the same time we have made great progress with our second franchise Planet Coaster, releasing its first and second ‘alpha test’ versions to the public towards the end of the financial year, with the third ‘alpha test’ version released since the close of the financial year.
"The financial year to 31 May 2016 (FY16) represents a year of continued good progress in our transition to a multi-franchise, self-publishing company."
For the first time substantially all our revenue has come from self-published titles: Elite Dangerous and Planet Coaster (in Alpha). We have transformed a business-to-business enterprise into a business-to-consumer organisation in the space of two years.
In FY17, we will launch our second franchise, Planet Coaster, and as a result will complete our strategic transition to self-publishing multiple revenue generating franchises.
Frontier has been shifting to a self-publishing business model using digital distribution channels, and has grown end-customer facing facets of the organisation such as marketing, community and customer support as well as re-focusing its development staff to self published projects.
Frontier invests its development resources in games with strong franchise potential. In order to maximise the return on its core skills and assets Frontier has targeted game genres in which the company has established expertise and intellectual property.
Elite Dangerous is now in its second year of release, and made its debut on Xbox One. Horizons and the base Elite Dangerous game continue to sell steadily, with regular updates adding to the quality of the game, renewing the interest of existing players, and driving new sales.
Planet Coaster draws on our extensive past experience in the 'Tycoon' genre, and in coaster park games. Feedback from the Alpha builds of Planet Coaster is very positive, with social media 'footprint' tracking significantly higher than Elite Dangerous at the equivalent time in the development cycle.
The games industry is transitioning into the world’s premier form of entertainment. Frontier has a proven track record of progressive development in video games spanning several decades of rapid technological change.