Frontier’s share price dives 40% following disappointing F1 Manager 2022 sales
Cambridge, UK-based Frontier Developments’ share price plummeted by over 40% on Monday after the company issued a disappointing trading update.
Frontier said it no longer expects to meet its prior sales and profit guidance for the current financial year (FY23) due to the underperformance of its most recent release, F1 Manager 2022, and weaker than expected sales across its whole portfolio, during the holiday period.
Founded in 1994 by Elite co-creator David Braben, Frontier is best known for the space flight series and its management sims like Planet Zoo, Jurassic World Evolution and Planet Coaster.
F1 Manager 2022, the “first game in an important new annual franchise for Frontier”, was released in the summer of 2022 and has sold over 600,000 copies, according to the company, which is below its expectations.
“Player engagement at release in August 2022 and during the initial period after release was strong, and broadly in-line with original expectations,” it said.
“Unfortunately, sales performance during key holiday season price promotions fell materially below original expectations, potentially due in part to increased player price sensitivity related to worsening economic conditions.”
As a result of the game’s underperformance, Frontier has cut its revenue projections for both its current financial year ending in May 2023 and FY24.
“The performance of Frontier’s existing internally developed games which released before June 2022, namely Elite Dangerous, Planet Coaster, Jurassic World Evolution 1, Jurassic World Evolution 2 and Planet Zoo, was in-line with expectations during H1 FY23,” Frontier said.
“However, sales performance during key price promotions in December 2022 fell below expectations, with some evidence of increased
Read more on videogameschronicle.com
