Frontier Developments reported record annual results, driven by the launch of Jurassic World Evolution 3 and the ongoing popularity of its Planet Coaster and Planet Zoo franchises.
Perhaps the most defining part of the result was the announcement of a special dividend following a ‘landmark’ year for the firm.
The Cambridge-based video games developer said revenue rose 16% to £104.8m in the year to 31 May, while adjusted operating profit jumped 62% to a record £21.4m.
Operating profit nearly doubled to £25.0m, helped by a one-off tax credit, and basic earnings per share rose 76% to 74.6p.
The company, which specialises in “creative management simulation” games, generated strong cash despite spending £17.5m buying its own shares, ending August with £51.4m in the bank.
It bought back £15.5m of stock during the year and declared a £5m special dividend, worth 14.1p a share. The special dividend yield is around 2.8%, and you’d expect to see some interest in the run-up to the 17th September ex-dividend date.
Frontier has a busy release schedule ahead, with Planet Zoo 2 due in October and a Warhammer 40,000 game to follow, and recently struck an agreement with Disney to develop and publish a new game drawing on the entertainment group’s characters.
It also confirmed a leadership transition: Jo Cooke took over as chief executive in January, while founder David Braben will move to a non-executive role next month, remaining as president and founder.
Jo Cooke, Chief Executive Officer, said: “FY26 was a landmark year for Frontier. We delivered record financial performance, demonstrated the strength of our CMS strategy, and continued to invest in the world-class franchises our players love, supporting vibrant communities and long-term engagement across our portfolio. With a strong balance sheet, a talented team, and an exciting roadmap ahead, we are well positioned to deliver sustainable growth, enduring player value, and long-term returns for our stakeholders.”