AN EXCITING FUTURE. A RECORD YEAR - Frontier Developments
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
HIGHLIGHTS
A RECORD YEAR.
AN EXCITING FUTURE.
Frontier is a world-class videogame developer and publisher,
with a proven track record of launching multiple successful
franchises with a strong post-launch nurturing strategy which
delivers multi-year revenues.
Each new release provides strong launch sales, while a combination of regular free
and chargeable updates, together with active community support, ensures longevity
of sales performance. Frontier is currently the UK’s largest independent studio and
continues to grow. In the 12 months to 31 May 2019 Frontier recruited more than
120 people, growing headcount to over 460 staff in its Cambridge headquarters.
In financial year 2019 Frontier grew revenue simulation, featuring authentic living animals, Frontier continues to grow its franchise portfolio
by more than 160% and operating profit by rich management and limitless creativity, and is and its headcount in order to deliver long-term
nearly 600% representing record financial coming exclusively on PC on 5 November 2019. revenue and earnings growth, and support the
performance. This was delivered through ambition to be the most respected and highest
In addition to Frontier’s core model of developing
the success of Jurassic World Evolution quality entertainment company in the world.
and publishing its own games, the Company is
(June 2018) and the ongoing performance of
partnering with other high-quality developers
Frontier’s first two self-published titles, Elite
to bring more games to market through the
Dangerous (2014) and Planet Coaster (2016).
Company’s Frontier Publishing initiative. In
Frontier’s next major release is Planet Zoo, June 2019 Frontier announced the first of these
the Company’s fourth title launch since the deals with Haemimont Games, an experienced
transition to a self-publishing business model and respected developer of quality strategy
in 2013-2014. Planet Zoo is the ultimate zoo and management titles.
Operational and strategic highlights
• Frontier achieved its biggest launch to date with • Planet Coaster, launched in November 2016, • Planet Zoo will be Frontier’s fourth major game
Jurassic World Evolution. Released in June 2018 continues to lead its genre. 11 separate release since the transition to self-publishing.
alongside the launch of the Jurassic World: Fallen chargeable themed expansion packs are now Coming exclusively on PC on 5 November 2019,
Kingdom film, the game achieved 1 million unit available, enabling existing players to access Planet Zoo will be the ultimate zoo simulation,
sales in five weeks and 2 million in seven months. substantial new features and content, and featuring authentic living animals, rich
attracting new players into the Planet Coaster management and limitless creativity.
• Frontier’s strategy of supporting and nurturing
world of creativity and sharing. Planet Coaster
its titles through active community engagement, • On 6 March 2019 Frontier announced securing
base game unit sales passed 2 million units
free updates, and chargeable content (paid a major global IP licence for a future game
in January 2019.
downloadable content or ‘PDLC’) continues to release in 2021.
deliver, with Jurassic World Evolution, Planet • Elite Dangerous, launched in December 2014,
• On 11 June 2019 Frontier announced its
Coaster and Elite Dangerous all continuing to continues to deliver exciting game experiences
first partnership under the Frontier Publishing
entertain existing players and attract new ones. to active players whilst welcoming new ones.
initiative, with experienced developer Haemimont
In December 2018 Frontier delivered the fourth
• Jurassic World Evolution has been supported Games. The partnership will see Frontier and
chapter of the Beyond season of free updates,
since launch through a number of free updates Haemimont work together on a new project
which added a number of gameplay features
and by a growing range of chargeable content, for release in two to three years’ time.
and further narrative to the Elite Dangerous
with five separate PDLC packs now available
universe. In January 2019 Elite Dangerous
as at 4 September 2019.
crossed the 3 million base game unit threshold.
STRATEGIC REPORT
Contents
STRATEGIC REPORT
IFC Highlights
02 Our history
04 Our franchise portfolio
06 Chairman’s statement
07 Chief Executive’s statement
10 Our business model and strategy
12 Our franchises
12 Elite Dangerous
14 Planet Coaster
16 Jurassic World Evolution
18 Planet Zoo
20 Principal risks and uncertainties
22 Financial review
24 Our people
18
CORPORATE GOVERNANCE
26 Board of Directors
28 Report of the Directors
30 Corporate governance report
34 Remuneration report
FINANCIAL STATEMENTS
36 Independent Auditor’s report
41 Consolidated income statement
12 14 16 41 Consolidated statement
of comprehensive income
42 Consolidated statement
of financial position
43 Consolidated statement
of changes in equity
44 Consolidated statement
of cashflows
44 Reconciliation of operating profit
25 >8 million >£200 200+ to cash generated from operations
45 Notes to the financial statements
years in
the industry
base game units of
self-published
million countries with
a playerbase
63 Company statement
of self-published of financial position
games sold**
revenue** 64 Company statement of cashflows
65 Company statement of changes
Financial highlights in equity
• The launch of Jurassic World Evolution, • Operating profit margin increased to 22% ADDITIONAL INFORMATION
66 Notice of annual general meeting
combined with the ongoing performance (FY18: 8%, FY17: 21%).
of all three titles, Jurassic World Evolution, 68 Advisors and company information
• Operating cashflow* generated an inflow of IBC Five year summary
Planet Coaster and Elite Dangerous, propelled
£15.4 million (FY18: an outflow of £2.8 million),
the Company to a record financial performance
reflecting the strong trading performance.
for the year ended 31 May 2019.
• Cash balances increased by £11.2 million during
• Revenue increased by over 160% to £89.7 million
the year to £35.3 million (FY18: £24.1 million).
in FY19 (FY18: £34.2 million), which was 2.4 times
the previous record of £37.4 million in FY17.
• Operating profit, as reported under IFRS, grew
to £19.4 million, nearly 600% higher than the
prior year (FY18: £2.8 million) and 2.5 times
the previous record of £7.8 million in FY17.
READ THIS REPORT ONLINE
* Operating profit excluding non-cash items, less investments in franchises
and other game related intangible assets.
AR.FRONTIER.CO.UK
** As at 31 July 2019.
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 01
OUR HISTORY
CELEBRATING
OUR FIRST 25 YEARS
In January we celebrated our 25th anniversary and I am very
proud of all of our achievements during our first 25 years.
In the last five years we have successfully transitioned from a trusted
‘work-for-hire’ developer to an established publisher with a portfolio of three
released games franchises, a substantial and world-class team, and strong
partnerships. It’s particularly pleasing that our most recent launch, Jurassic
World Evolution, has been our biggest to date.
However, I believe we are still at the start of our journey; we have a lot of
exciting opportunities ahead of us driven by our resources, capability and
experience, our strong partnerships and the widening opportunities for
games companies within the ever-changing entertainment industry.
DAVID BRABEN
FOUNDER AND CEO
AR.FRONTIER.CO.UK
1984 1994–2013 2013
The original Elite Very successful ‘work-for-hire’ Successful
launched developer working with Crowdfunding led to
multiple publishers July 2013 IPO
1994 2012 2014
Company founded Crowdfunding for Elite Elite Dangerous
by David Braben Dangerous from over launched December 2014
25,000 backers
02 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019
STRATEGIC REPORT
2016 2019
Planet Coaster Planet Zoo
launched is planned to launch
November 2016 November 2019
2018
Jurassic World Evolution
launched June 2018.
We moved into the new
Frontier Developments HQ
at Cambridge Science Park.
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 03
OUR FRANCHISE PORTFOLIO
GROWING OUR
PORTFOLIO
Released titles
Elite Dangerous Planet Coaster Jurassic World Evolution
Elite Dangerous – available for Windows PC, Planet Coaster – available for Windows PC Jurassic World Evolution – available for Windows
Microsoft Xbox One and Sony PlayStation 4 – – builds on Frontier’s genre-defining expertise PC, Microsoft Xbox One and Sony PlayStation 4
is the definitive massively multiplayer space with coaster park games such as RollerCoaster – evolves players’ relationships with the Jurassic
epic, bringing gaming’s original open world Tycoon 3 and Thrillville. It further raises the World film franchise, placing them in control of
adventure to the modern generation with a bar for this popular genre, allowing players to operations on the legendary island of Isla Nublar
connected galaxy, evolving narrative and the create the theme park of their dreams as they and the surrounding islands of the Muertes
entirety of the Milky Way recreated at its full surprise, delight and thrill incredulous crowds, Archipelago. Players create and manage their
galactic proportions. and share their success with the world via the own Jurassic World as they bioengineer new
Steam Workshop community. dinosaur breeds, and construct attractions,
containment and research facilities. Every
choice leads to a different path and spectacular
challenges arise when ‘life finds a way’.
10 ELITEDANGEROUS.COM 12 PLANETCOASTER.COM 14 JURASSICWORLDEVOLUTION.COM
Financial summary
Revenue (£m) Operating profit (£m) Operating margin (%) EBITDA* (£m)
£89.7m £19.4m 22% £29.0m
19 89.7 19 19.4 19 22 19 29.0
18 34.2 18 2.8 18 8 18 9.4
17 37.4 17 7.8 17 21 17 12.7
16 21.4 16 1.2 16 6 16 4.9
15 22.8 15 1.6 15 7 15 6.1
* Earnings before interest, tax, depreciation and amortisation.
** Operating profit excluding non-cash items, less investments in franchises and other game related intangible assets.
04 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019
STRATEGIC REPORT
Future title Frontier Publishing
Planet Zoo Frontier Publishing
Simulation runs wild in Planet Zoo. From the We are actively pursuing opportunities to use for release in two to three years’ time, with
developers of Jurassic World Evolution (2018), our publishing capability, industry experience, Frontier providing the development funding
Planet Coaster (2016) and Zoo Tycoon (2013) comes commercial partnerships and financial resources as well as marketing and distribution.
the ultimate zoo sim, featuring authentic living to supplement our own development roadmap
This deal is strategic and a strong start to growing
animals who think, feel and explore the world by partnering with other high-quality developers
Frontier’s publishing business with third-party
players create around them. Planet Zoo allows to bring more games to market.
titles. The Board expects the publishing business
players to experience a globe-trotting campaign
In June 2019 we announced our first deal under to become a material contributor to the Company
or let their imagination run wild in the freedom of
this Frontier Publishing initiative with experienced in years to come, as more partnerships are agreed.
Sandbox mode, create unique habitats and vast
developer Haemimont Games. Haemimont Games
landscapes, make big decisions and meaningful Our Frontier Publishing initiative helps us expand
(“Haemimont”), founded in 1997 in Bulgaria, boasts
choices, and nurture their animals as they our game portfolio further, through external
a passionate team of over 60 highly skilled people
construct and manage a truly modern zoo where development partnerships that supplement
and a wealth of experience in developing quality
animal welfare and conservation comes first. our own internal development roadmap. We are
strategy and management games, including
in discussions with other developers and hope
Victor Vran, Surviving Mars and titles in the
to be able to announce additional publishing
PLANETZOOGAME.COM Tropico series. The partnership will see Frontier
16 partnerships in the future.
and Haemimont work together on a new project
EPS (basic) (p) Operating cashflow** (£m) Net cash balance (£m)
45.4p £15.4m £35.3m
19 45.4 19 15.4 19 35.3
18 9.6 (2.8) 18 18 24.1
17 22.7 17 3.4 17 12.6
16 4.2 (2.7) 16 16 8.6
FINANCIAL REVIEW AND KEY
15 4.9 15 2.6 15 10.5
20 PERFORMANCE INDICATORS
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 05
CHAIRMAN’S STATEMENT
DAVID GAMMON, NONEXECUTIVE CHAIRMAN
A RECORD
YEAR
It’s thanks to our fantastic
people that we are in such
a strong position.
The hard work of our amazing team has delivered a set of record BOARD
financial results; of which we are all extremely proud. This has not I believe that our Board of Directors is a team
of highly experienced, capable and motivated
happened by accident. Over the last 25 years our talented personnel, individuals. Whilst we are all well aligned in terms
led by David Braben and Jonny Watts, have established a culture of our strategy and direction, there is regular
and reputation for high quality, as well as for creating enduring debate and challenge at Board meetings, which
and authentic game experiences. It’s this sharp focus on quality that is facilitated by each of our different areas of
expertise, business experiences and individual
led us to achieve our best year yet in FY19, through the success perspectives. At the AGM in October 2018 our
of our biggest launch to date, Jurassic World Evolution, and the former Chief Operating Officer, David Walsh,
ongoing popularity of Elite Dangerous and Planet Coaster. transitioned to a Non-Executive Director role
in order to focus his attention on a start-up
opportunity outside of the games industry.
I would like to thank David for his 17 years of
In 2013 we made the brave decision to transition Our reputation for quality and our increased
excellent service to Frontier in an executive role
to a self-publishing business model because profile have helped us strengthen our existing
and I am pleased to report that he is proving
of the opportunities we saw from the growth partnerships and build new relationships. We
to be a very capable Non-Executive Director.
of digitalisation. This included an expectation that already have one future title which will be based
the development and ownership of game content on a major global IP, and discussions are ongoing OUTLOOK
would increase in importance and prominence with a number of IP owners. In June 2019 we We are proud of our strong growth and record
over time. David, Jonny and their teams grabbed announced our first partnership under the financial performance for last year, but we have
the opportunity, and we now have three strong Frontier Publishing initiative, with experienced much more to come in the future. It’s thanks to
game franchises in the market and more in the developer Haemimont Games. Frontier Publishing our fantastic people that we are in such a strong
pipeline. I am personally delighted that our partnerships are an excellent way for us to build position. I’d like to take this opportunity to thank
decision to change our business model has proven our portfolio by leveraging our publishing them for all of their hard work.
correct, and that we continue to deliver for all capability, our channel relationships and our
of our stakeholders, including our communities financial resources to help talented external
DAVID GAMMON
of players, our staff and our investors. development teams bring their games to market.
NONEXECUTIVE CHAIRMAN
4 September 2019
06 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019
STRATEGIC REPORT
CHIEF EXECUTIVE’S STATEMENT
DAVID BRABEN, FOUNDER AND CEO
AN EXCITING
FUTURE
Our strategic objective
is to create long-term
sustainable growth.
The five years since we transitioned to a self-publishing model Over the last 12 to 18 months we have been
exploring the potential to use our publishing
have been really exciting. We continue to successfully execute
capability, industry experience, commercial
the strategy we set out at IPO, building a great portfolio of our own partnerships and financial resources to
games in the process. FY19 has been our best yet and I am very supplement our own development roadmap.
pleased to report a record level of financial performance, which The three areas we have been reviewing are:
reflects the skill and hard work of our talented people and the • third-party publishing (controlling the
support of our players around the world. We continue to nurture promotion and distribution of other
developers’ games);
and enhance all three of our existing titles (Elite Dangerous,
Planet Coaster and Jurassic World Evolution) and I look forward • commissioning (outsourcing the majority
of development of Frontier games to other
to the release of our fourth, Planet Zoo, later this year. Our roadmap
developers); and
for future releases both as a developer and publisher is looking
• acquisitions (to enhance our franchise
particularly strong, including our announcement in March 2019
portfolio or capabilities).
that one future launch, in 2021, will benefit from a major global
In June 2019 we announced our first deal
IP licence. More IP licences are anticipated.
under our Frontier Publishing initiative
(third-party publishing) with experienced
developer Haemimont Games. I anticipate
further deals in the future for Frontier
GROWING OUR PORTFOLIO Publishing, and we also continue to explore
commissioning and acquisition opportunities.
FUTURE FRANCHISES
Earlier in 2019 we celebrated our 25 year
FRONTIER PUBLISHING anniversary as a company and while I am
PLANET ZOO (2019+) very proud of all of our achievements to date,
it feels like we are at the start of our journey.
JURASSIC WORLD EVOLUTION (2018+)
The opportunities we have now are better than
PLANET COASTER (2016+) ever. I am excited about our future, our next
25 years, as we continue to expand our horizons
ELITE DANGEROUS (2014+)
and grow our portfolio, our team and
our partnerships.
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 07
CHIEF EXECUTIVE’S STATEMENT CONTINUED
DAVID BRABEN, FOUNDER AND CEO
THE GAMES MARKET Our industry has always thrived on disruption, smooth revenue, but major releases of new
The games market, along with film, TV and music, in terms of individual games, game genres, franchises are still a significant factor in the
is part of the wider $300 billion entertainment charging models, technology and routes to revenue stream. As we scale the number
industry. Games forms the largest sector, worth in market, and it has been interesting to observe of franchises over future years, and as the
excess of $130 billion, and it is still growing rapidly the impact of some of those disrupting factors frequency of these releases approaches one
unlike its other counterparts, such as TV, that have in the last 12 months, particularly in terms of per year, this will have a smoothing effect
typically experienced declines over several years. new digital distribution channels and streaming on growth, but in the meantime revenue
services. We believe that many of these changes is sensitive to the specific schedule of such
With audiences craving greater levels
benefit those companies who both create and releases and may therefore exhibit ‘stepped’
of interactivity within their entertainment
own their own content, which is a further behaviour across financial years, as those
experiences, the lines between these sectors
validation of our transition to a self-published new franchises are released.
continue to blur. Frontier is well placed to both
development model. Our particular focus on
drive and support future changes in the wider We are growing our portfolio and consequently
‘games as a service’– supporting our titles and
industry, including the potential addition of we are increasing our development team to
their communities with regular updates – is
whole new forms of entertainment, leveraging enable us to support additional titles while
working very well, producing three successful
our strong relationships with leading generating new content for our existing titles.
titles so far, with early indications that the fourth
entertainment companies. We expect to grow our resources and capability
is being well received, but we will continue to
over time to enable us to achieve one major
The games market is typically seen as three monitor and consider different delivery model
launch every 12 months, but this will not require
different sectors, PC, console and mobile/tablet, options as the industry continues to evolve.
us to increase our workforce linearly because
each with distinct characteristics, though
STRATEGY supporting an existing franchise typically requires
increasingly it is play styles that matter.
We believe that publishing our own franchises, fewer staff than creating a new one.
Rich, engaging experiences where the expectation
and selectively those of other high-quality
might be to play for an hour or so in a session As stated in the Group’s previous Annual Reports
development studios, is the best way to maximise
for example, are currently confined to PC and and other communications, in addition to the
the benefit of our core skills, our assets and our
console. In the future we might see these coming current core model of using internal resources,
COBRA technology platform. The Company’s focus
to other platforms too like mobile and tablet, supplemented by outsourced services, the Group
is on developing and delivering top-quality,
via the new streaming services. Our main will continue to explore other opportunities to
self-published PC and console titles for
development focus is therefore on those rich, accelerate its scale-up.
digital distribution.
engaging experiences currently most suited
The Board expects the third-party publishing
to PC and console, as the audiences on these We will continue to follow our repeatable model to
initiative announced in June 2019 to grow as
platforms greatly value games exhibiting support our great franchises over many years with
more third-party games are signed and added
Frontier’s key development strengths of new releases and updates, and to create further
to the publishing roster, though it is not expected
compelling gameplay and high production franchises in popular game genres where we can
that these games will contribute material revenue
quality. Currently, the mobile sector is overcrowded use our key expertise, knowledge and/or valuable
in the current financial year (FY20).
and has a very low barrier to entry, typically external IP to deliver highly differentiated,
with games with a 5-10 minute play expected best-in-class player experiences, and to further We will also continue to explore opportunities
play session, making audiences less predictable build our revenue pipeline over the long term. for commissioning (outsourcing the majority
and much less influenced by quality. ‘Discoverability’ of development of Frontier games to other
Our strategic objective is to create long-term
(the ability to find a title) is also better on PC developers) and enhancing the Group’s franchise
sustainable growth through successfully
and console, with excellent support from portfolio or capabilities via acquisitions. The Group
publishing a growing number of franchises.
reviewers, content creators and social media. has considered a number of possible acquisitions,
Our strategic focus is on two key areas:
but so far none have met our valuation, product
The entire games market is moving rapidly
• developing our business to achieve alignment and culture fit thresholds.
towards digital download as the primary delivery
repeatable success; and
model. Mobile and PC are now almost 100%
digital, and the console audience is quickly • creating and managing franchises. DAVID BRABEN
catching up, as focus shifts to the new generation FOUNDER AND CEO
We are scaling up for the future so we can
of hardware and older business models are 4 September 2019
release games more frequently and we already
replaced. We have also seen a number of
have future franchises in different phases
interesting developments and announcements
of development. The increase in the number of
for streaming game content. While technical
releases supporting our existing games helps
considerations mean that streaming games
from the cloud to consumer devices may take
53+
22+31+3593R47 51+
20+31+4081R49
several years to become mainstream, we believe The size of the global games industry market¹
the prospect of streaming is already shifting the
balance of power from distribution stores in
favour of game developers, as evidenced by a 22% Downloaded/Boxed PC games 20%
leading distribution store adjusting its distribution 31% Console games 31%
2018 2021
35% Smartphone games 40%
fees from 30% to 20%-25%.
$138.7Bn 09% Tablet games 08% $178.2Bn
+28.5%
03% Browser PC games 01%
Our target segments
1 NewZoo Global Games Market Report 2019.
08 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019
STRATEGIC REPORT
David Braben, Chief Executive, said:
I am delighted to report a record level of financial performance, which reflects the skill
and hard work of our talented team and the support of our players around the world.
We continue to nurture and enhance all three of our existing titles (Elite Dangerous,
Planet Coaster and Jurassic World Evolution) and I look forward to the release
of our fourth highly anticipated game, Planet Zoo, later this year.
Earlier in 2019 we celebrated our 25th anniversary as a company and while I am very
proud of all of our achievements to date, it feels like we are at the start of our journey.
The opportunities we have now are better than ever. I am more excited about our future,
our next 25 years as a result, as we continue to expand our horizons and grow our
portfolio, our team and our partnerships.
FY19 releases
CURRENT TRADING AND OUTLOOK • The fact that Planet Zoo is a single-format • The timing of the release. Planet Zoo launches
Frontier’s first three self-published titles, PC exclusive. Jurassic World Evolution was a half-way through FY20, so contributes half a
Elite Dangerous, Planet Coaster and Jurassic multi-platform release, launching simultaneously year of revenue, whilst Jurassic World Evolution
World Evolution, continue to perform well, on PC, PlayStation4 and Xbox One, with console which launched at the beginning of FY19,
in line with expectations, supported by the representing roughly half of the total unit sales. provided a full 12 months of revenue.
Company’s strategy of active community Frontier’s strategy includes the release of certain
Taking into account the ongoing performance
engagement, free updates, chargeable games (especially own IP games) on PC first
of Elite Dangerous, Planet Coaster and Jurassic
content and price promotions. in order to maximise long-term engagement,
World Evolution, including the expansion content
taking into account audience considerations
Revenue in the current financial year (FY20, for each of those games, and the planned launch
and hardware capability, while retaining
running from 1 June 2019 to 31 May 2020) of Planet Zoo on 5 November 2019, the Board
the opportunity to expand to console later.
will benefit from the launch of Planet Zoo on is comfortable with the current range of analyst
5 November 2019. Whilst Frontier anticipates • The strength of the Jurassic World brand. revenue projections of £65 million to £73 million for
considerable success with the release of Support for the launch of Jurassic World financial year 2020 (the 12 months to 31 May 2020).
Planet Zoo, it is unlikely to drive total revenues Evolution was boosted by it’s release of the
The Board expect revenue from the Frontier
within the financial year as high as those Jurassic World: Fallen Kingdom film, and the
Publishing initiative to grow over time, although
achieved by Jurassic World Evolution in FY19. considerable marketing activity surrounding it.
does not expect it to be material in FY20.
This is due to three main factors:
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 09OUR BUSINESS MODEL AND STRATEGY
OUR MULTIFRANCHISE
BUSINESS MODEL
Key strengths Creating and nurturing to Stakeholder value
achieve repeatable success
EMPLOYEES
Our team is instrumental in
making games that define genres
and receive critical acclaim. EMPLOYEES
CREATE Record performance related
Frontier uses experience gained from bonuses in 2019
a track record in the games industry over
three decades to create franchises that
RESEARCH AND build on our world-class expertise.
DEVELOPMENT
We continue to invest in the High quality PLAYERS
necessary facilities to develop
our franchises and support
Innovative experiences
>8 million
base game units of
our world-class team.
self-published games sold
(as at 31 July 2019)
INHOUSE TECHNOLOGY
Our development process uses BUILDING PLAYER
PARTNERS
our proprietary COBRA tools NUMBERS AND Strong sales performance
and technology to facilitate ENGAGEMENT of Jurassic World Evolution
innovative features.
SHAREHOLDERS
AUDIENCE
We have a loyal audience which Nearly 600%
we continue to engage using growth in profit
appropriate additional products. in FY19
NURTURE
Frontier avoids ‘pay-to-win’ features, DEVELOPERS
PARTNERSHIPS instead continuing to expand each franchise
offering through an ongoing programme of
1st
We work with our partners to Frontier Publishing
free and paid-for expansions and add-ons.
widen our audience, monetise partnership signed
our franchises and bring other Boost player experience
games to market. Increasing awareness
10 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019STRATEGIC REPORT
Developing our business to achieve repeatable success
INVEST DEVELOP PUBLISH
We invest our development resources in games We use online channels to create and engage With each of our franchises, we plan for the long
with strong franchise potential, primarily on PC with player communities during game development, term, and how best to support and sustain the
and console. In order to maximise the return on a practice which provides a valuable source of audience for each one. A dedicated team monitors
our core skills and assets we target game genres feedback, and these player communities provide progress based on sentiment towards the games,
where we have established expertise and/or excellent advocacy for each franchise prior to launch. the success of each of the distribution channels
intellectual property within our teams. Audiences and platforms, and the uptake of additional content
on the chosen platforms tend to value games that Our development process uses our proprietary both free and paid, allowing us to reach the widest
exhibit Frontier’s key development strengths. COBRA development tools and technology to possible audience over time. Free content is a
facilitate innovative features and the creation valuable tool to help retain and restore existing
We have a proven and successful model for repeatable of top-quality games with strong differentiation audiences and support sentiment, while paid
success, looking at under-served areas of the market for PC and console audiences. Our control of content both helps monetise the game and brings
in which we can excel. To accelerate our progress this technology also removes the risks related to new players as new content triggers online coverage
and increase the frequency of launches we are ongoing access to third-party licensed technology on platforms like YouTube or Twitch, increasing
continuing to scale up our organisation, not just in alternatives, as has happened in the past where sales of the corresponding base game and for
terms of staff numbers, but also in terms of leadership successful tool providers are acquired by a major other paid expansion content.
skills, training, organisational structure, process
rival player. In addition, the direct engagement with
and external partnerships. We also monitor the geographical performance
those involved in the engine development, and the
of our titles, understanding and monitoring under
We also invest in the necessary facilities to support ability to control the delivery dates and new feature
and overperformance versus expectations in each
our world-class team. In April 2018 we moved all roadmap of that technology can be invaluable, for
territory, and will continue to look for opportunities
of our staff into a brand new office space on the example giving first-mover advantage with new
to tailor our local price to a level more appropriate
Cambridge Science Park, with a great many custom technologies such as VR.
to each local economy.
features. It is our belief that having all our people
in Cambridge working together in a single building
helps maximise our operational effectiveness and
efficiency, and the improved work environment
helps with recruitment and overall productivity.
Creating and managing franchises
In order to maximise the return on our core skills was a significant appetite for such a game with aim and Planet Coaster now dominates the sector
and assets we target game genres where we believe Kickstarter crowdfunding at the end of 2012 and and continues to be successful in its third year
we can deliver both high-quality, differentiated early 2013, and the game itself has now vindicated since release.
offerings using established expertise and intellectual that decision with continued success in its fifth
Jurassic World Evolution followed in June 2018
property, and have a strong chance of successful year since full release.
(working with the team at Universal Games and
market entry, as we believe that sector is underserved
With Planet Coaster, we were releasing a title in Digital Platforms), and now Planet Zoo has been
by the existing offerings, based on past experience
competition with an established and well-loved announced for release on 5 November 2019. With
or knowledge of that sector.
franchise, RollerCoaster Tycoon 3. Frontier developed Planet Zoo, we are following the same model. The
We use this proven, rigorous and repeatable model RollerCoaster Tycoon 3 for Atari in 2004 when we last successful game in this sector was Zoo Tycoon
to invest our resources with the intention of creating were a work-for-hire business and it was a very with Microsoft in 2013, developed by Frontier for
world-class games with strong franchise potential successful game for over a decade. This led us to Microsoft, and again we are confident we have
and plans for strong post-launch product support believe the sector was underserved and given our developed a game that will dominate its sector for
to help realise this potential. With Elite Dangerous experience developing RollerCoaster Tycoon 3 we years to come. Early indications are encouraging.
we knew there had been significant success in the were confident we could create its natural successor The responses to our Planet Zoo announcements,
past, not least because of our own games in that as the genre-defining title. Despite the release videos and hands-on demonstrations so far have
area in previous decades, but that there were no of another game in the sector the day prior to been overwhelmingly positive.
games like it at the time. We verified that there Planet Coaster’s launch, we have achieved that
Future plans
We will continue to grow the capacity and capability We are building a broad portfolio of franchises, each third-party licensed IP (like Jurassic World Evolution).
of our organisation in both commercial and different to the last and each with the capabilities Games based on owned IP provide Frontier with
development areas in order to further the to expand over time and we are scaling up for the the benefit of having complete creative freedom,
successful evolution of our franchises. future so we can release games more frequently. whilst games based on licensed IP have the potential
All upcoming franchises will be selected using the to more easily reach very large audiences, such as
As part of this process, we will explore additional
same approach set out above, and we already have with Jurassic World Evolution. We will review the
potential partnerships and licensing opportunities.
several in different phases of development. value of licensing proven third-party major global
We will also continue to review potential acquisition
IP versus developing our own IP for each potential
targets that could augment our capacity or add Subject to Frontier’s disclosure obligations as an
future franchise on a case-by-case basis. We will
new capabilities as well as IP that may help us AIM company, it is the Board’s intention to make
also consider the long-term benefits of relationships
achieve our goals. announcements about upcoming projects at the
with these IP partners and how it can help with
optimum time for the success of that particular
We will endeavour to enhance and expand future opportunities as the wider entertainment
franchise, which may be some time after the start
our franchises and grow their audiences using sector continues to change, presenting ever-more
of a particular project.
appropriate additional products, platforms, media, new opportunities for new types of entertainment.
marketing, distribution channels and charging Our future franchise portfolio is likely to contain
models through investing in the necessary people, some with Frontier-owned IP (like Elite Dangerous,
organisation, resources and infrastructure. Planet Coaster and Planet Zoo) and some with
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 11OUR FRANCHISES
ELITE DANGEROUS
BLAZING A TRAIL
INTO THE BEYOND
Elite Dangerous is now in its sixth financial year since release in December
2014. Since launch we have continued to release expansions to the original
Elite Dangerous game, simultaneously on PC, PlayStation 4 and Xbox One
as those platforms have been added. Simultaneous releases on all
supported platforms are planned to continue going forward.
December 2014 These updates add to the quality of the game, The Horizons season of chargeable expansions
release date renew the interest of existing players and also launched in December 2015 with Planetary Landings
generate additional awareness across traditional and concluded in September 2017 with The Return,
media and social media platforms, resulting in new with each release in the season providing new
400 billion
sales. The attach rate of Elite Dangerous: Horizons headline gameplay features plus a large number
to the base game continues to grow steadily, of quality of life enhancements and other
star systems to explore helped by the regular updates. tweaks, fixes and improvements.
Having the base game and Horizons expansions in The Beyond season of free updates was announced
the market covers mid-price entry to the franchise in October 2017 at the Frontier Expo 17 fan
38 with an upgrade path, and we bundle the two
together and add some digital items to create a
convention, and released in four chapters during
the period February 2018 to December 2018. Each
ships to choose from
Deluxe edition for a premium price point entry. Beyond update was free for all players, regardless
We believe each product offers great value of whether they had the Horizons season pass,
individually and a compelling premium providing enhancements to the overall player
package together. experience, bringing foundational changes to the
core systems of Elite Dangerous and delivering
new in-game content for Commanders to
experience as they explore the massively
multiplayer galaxy.
ELITEDANGEROUS.COM
Ongoing development FREE UPDATES MARCH 2015
Wings
AND DLC
Elite Dangerous is Frontier’s biggest selling supporting the unique, evolving player-driven
game franchise to date. The franchise continues story, which all players experience together.
FEBRUARY 2015
Community Goals
to perform strongly as we continue to focus We will continue to support existing players
on enhancements within the strategy of further and further expand the player base over the LAUNCH
improving perceived quality and sentiment, next financial year through the addition DECEMBER 2014
adding significant long-term new features and of new content. 1.0 Elite Dangerous
PAID DLC
12 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019STRATEGIC REPORT
OCTOBER 2015 MAY 2016 JUNE 2018 DECEMBER 2018
CQC Mission System Beyond: Chapter 2 Beyond: Chapter 4
JUNE 2015 DECEMBER 2015 OCTOBER 2016 FEBRUARY 2018 AUGUST 2018 APRIL 2019
PowerPlay Ships Expansion Overhaul Beyond: Chapter 1 Beyond: Chapter 3 April update
DECEMBER 2015 OCTOBER 2016 SEPTEMBER 2017
2.0 Horizons Horizons: The Guardians Horizons: The Return
MAY 2016 APRIL 2017
Horizons: The Engineers Horizons: The Commanders
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 13OUR FRANCHISES CONTINUED
PLANET COASTER
EVOLVING COASTER
PARK SIMULATION
Planet Coaster was successfully launched in November 2016 after a short
beta period, achieving the global #1 position on the Steam distribution channel
and continuing to sell strongly through the subsequent holiday period.
In accordance with our strategy, we began In addition to the free updates, players are able
to release free updates, each of which adds to introduce further content into their parks
November 2016 headline features but also expands and improves through the purchase of paid downloadable
release date different creative and management aspects content (PDLC) packs. The first of these released
of the game. 15 free updates have now been in July 2017 with three packs involving Universal
11 released for Planet Coaster, starting with IP – Back to the Future, The Munsters and
paid DLC packs the Winter Update one month after launch Knight Rider. In total Planet Coaster has 11
in December 2016 and continuing at regular separate PDLC packs available to date. The most
140 intervals, with the latest released in June 2019. recent, the Ghostbusters pack using Sony Pictures
IP, released in June 2019. The Ghostbusters
number of rides and coasters In addition to the free content updates, we
pack took the game on a new direction,
released the Thememaker’s Toolkit in winter
>250,000 2018. Thememaker’s Toolkit is a free feature
introducing a narrative scenario that directly
tied into the original film, in which Dan Aykroyd
player created workshop items that allows players to unleash their creativity
can be freely downloaded and William Atherton reprised their iconic roles.
and enhance their parks by importing bespoke
It also presented players with new gameplay
3D models of their own design into the game.
elements that have injected an abundance
of new creative options for their enjoyment.
PLANETCOASTER.COM
Ongoing development FREE UPDATES APRIL 2017
AND DLC Spring Update
The combination of free updates and PDLC
packs is an important part of Frontier’s DECEMBER 2016 JUNE 2017
Winter Update Summer Update
strategy for Planet Coaster, as they keep
the game fresh for existing players and LAUNCH
help attract new players into the game. NOVEMBER 2016
Planet Coaster
JULY 2017 SEPTEMBER 2017
Back to the Future™ Time Machine Construction Kit Spooky Pack
Knight Rider™ K.I.T.T. Construction Kit
The Munsters’® Munster Koach Construction Kit
PAID DLC
14 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019STRATEGIC REPORT
NOVEMBER 2018
OCTOBER 2018 Thememaker’s Toolkit JUNE 2019
World’s Fair Update Quick Draw
NOVEMBER 2017 MARCH 2018 JULY 2018 DECEMBER 2018 APRIL 2019 Interactive
Anniversary Update Hotels Update Wild Mouse Coaster Magnificent Rides Update Copperhead Strike Coaster Shooting Ride
MARCH 2018 JULY 2018 DECEMBER 2018 APRIL 2019
Studios Pack Vintage Pack Magnificent Rides Collection Classic Rides Collection
DECEMBER 2017 OCTOBER 2018 JUNE 2019
Adventure Pack World’s Fair Pack Ghostbusters
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 15OUR FRANCHISES CONTINUED
JURASSIC WORLD EVOLUTION
BUILD YOUR OWN
JURASSIC WORLD
Jurassic World Evolution, our first self-published licensed title, launched on
12 June 2018. It was our first self-published title (although not our first game)
to debut simultaneously on PC, PlayStation 4 and Xbox One, and the first to
benefit from a major marketing event by launching alongside the latest film
in the franchise, Jurassic World: Fallen Kingdom at the start of the biggest
games industry show of the year – the Electronic Entertainment Expo (E3)
June 2018 in Los Angeles.
release date The opportunity was identified and approved surrounding islands of the Muertes Archipelago.
7 through our thorough project assessment
process. It leveraged our management and
Players create and manage their own Jurassic
World as they bioengineer new dinosaur breeds
islands builder game expertise, plus our unrivalled and construct attractions, containment, and
66 expertise in implementing believable in-game
animals from games such as Dog’s Life, Kinectimals
research facilities. Every choice leads to a
different path and spectacular challenges
dinosaur species and Zoo Tycoon. In this case, we determined that arise when ‘life finds a way.’
5 being able to use the Jurassic World IP would
significantly benefit awareness with the most recent
Jurassic World Evolution was announced in August
paid DLC packs 2017, with pre-order announced on 28 March 2018
movie in the franchise released in June 2018,
for a digital launch on 12 June 2018 on all three
around the 25th anniversary of the original movie.
platforms. In addition, physical discs went on sale
Jurassic World Evolution evolves the players’ for PlayStation 4 and Xbox One on 3 July 2018
relationship with the Jurassic World film franchise, for those who still prefer physical media. Player
placing them in control of operations on the engagement has been very positive, and the game
legendary island of Isla Nublar and the achieved 1 million units in five weeks and passed
the 2 million unit marker within seven months.
JURASSICWORLDEVOLUTION.COM
Ongoing development FREE UPDATES
AND DLC
Jurassic World Evolution’s first PDLC pack was JUNE 2018
available at launch and as a ‘deluxe’ bundle during Fallen Kingdom SEPTEMBER 2018
Dinosaur Update Challenge Mode Update
pre-order. Consistent with our strategy for our first
two titles, we have released a number of free LAUNCH
updates since launch and we have also provided JUNE 018
players the opportunity to engage with paid-for Jurassic World Evolution
content. To date we have released five separate JUNE 2018
PDLC packs in total. As with Planet Coaster, the Deluxe Dinosaur Pack
combination of free updates and PDLC packs
is an important part of our strategy. PAID DLC
16 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019STRATEGIC REPORT
DECEMBER 2018 AUGUST 2019
Sandbox and Challenge Mode Expansion Update Nasutoceratops Dinosaur
NOVEMBER 2018 JANUARY 2018 APRIL 2019 JUNE 2019
Day and Night Cycle Update Stegasaurus vivid skin Capture Mode Update Terrain Tools Update
NOVEMBER 2018 APRIL 2019 JUNE 2019
Secrets of Dr. Wu Carnivore Dinosaur Pack Claire’s Sanctuary
DECEMBER 2018
Cretaceous Dinosaur Pack
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 17OUR FRANCHISES CONTINUED
PLANET ZOO
SIMULATION
RUNS WILD
In April 2019 Frontier announced its next major release would be Planet Zoo,
launching exclusively for PC on 5 November 2019. Frontier aims to make
Planet Zoo the ultimate zoo simulation, featuring authentic living animals,
rich management and limitless creativity. In Planet Zoo players can build
and manage a truly modern zoo where animal welfare and conservation
November 2019 comes first.
release date
Planet Zoo will present the most authentic animals go hands-on and look after the smallest details.
50+ in video game history. From playful lion cubs to
mighty elephants, every animal in Planet Zoo is
Players can thrill visitors with prestigious animals
and famous exhibits, develop their zoo and research
authentic animals
an individual who thinks, feels and explores the new technologies, and release animals back into
3 world players build around them. Planet Zoo’s
animals care about their surroundings and each
the wild to repopulate the planet.
ways to play And in Planet Zoo players can unleash their
other, with complex environmental and social
creativity with the next evolution of Planet Coaster’s
Best simulation game at needs. Players will nurture their animals
best-in-class creation mechanics. With powerful
gamescom 2019 throughout their lives, study and manage every
creative tools players can create stunning scenery
species to see them thrive, and help them raise
and habitats, dig lakes and rivers, raise hills and
young to pass their genes onto future generations.
mountains, and carve tunnels and caves as they
Players can manage their zoo in an expressive build their own zoo. Players will see their animals
world that reacts to every choice they make, and visitors respond to their creative vision, and
as they choose to focus on the big picture or can share their designs with friends in Planet
Zoo’s online community.
PLANETZOOGAME.COM
Campaign highlights APRIL 2019
Studio visit with top-tier press
Planet Zoo’s marketing campaign kicked off in Mode. Our communications strategy of continually
April 2019 when we announced worldwide that engaging with our community, raising brand Planet Zoo announcement
we would be making a new zoo simulation game awareness through Developer Diaries and monthly with first CG trailer
that sits within the Planet franchise. The next developer journals is performing well and
major event was at E3, when we previewed the encouraging good conversations and awareness
first in-game trailer. Premiered on the PC Gaming online. Planet Zoo has already received a number
Show and with a global Twitch E3 partnership, this of awards and acknowledgements such as the Best MAY 2019
kicked off the pre-order phase of the campaign and Simulation Game at gamescom, as well as multiple Studio visit with
excited players with a beta offering. Gamers and Best in Show awards across E3 and gamescom. top-tier press
the wider global gaming community were able to With this and many campaign activities and
play or see the first hands-on build at gamescom, announcements planned before launch, Planet Zoo
giving a glimpse into the first scenario in the Career is on a strong trajectory for success.
18 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019STRATEGIC REPORT
JUNE 2019
Exclusive in-game trailer reveal
on PC Gaming Show stage AUGUST 2019
The Making of Planet Zoo | Creativity and Simulation #2
First gameplay footage at E3
First consumer hands-on at Gamescom
The Making of Planet Zoo | An Authentic
Experience Dev Diary #1 Beta content announcement and date reveal
LAUNCH
NOVEMBER 2019
Planet Zoo
JULY 2019 SEPTEMBER 2019
Developer journals Exclusive beta access
and animal reveals 24 September 2019 to 8 October 2019
On #WorldTigerDay Planet Zoo Hands-on at TwitchCon
welcomes the Bengal Tiger
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 19PRINCIPAL RISKS AND UNCERTAINTIES
WE EFFECTIVELY IDENTIFY
AND MANAGE RISKS
The Group faces competitive, strategic and financial risks that are inherent in a rapidly growing emerging market. The executive team maintains the
risk register and escalates the key risks for further consideration at full Board level on a regular basis.
The key business and financial risks for the Group are set out below:
Description Mitigation Change
Staff availability
If the Group does not have the correct numbers The Group continues to prioritise direct recruitment, outreach and staff
of people with the correct skills available, the on-boarding in order to ensure that its plans can be achieved. Over 120 people
execution of its business plan will be compromised. joined Frontier during FY19, growing headcount to over 460. We have visibility
of our future needs via a regularly reviewed plan of record and undertake
Links to strategy INVEST DEVELOP PUBLISH
analysis of potential bottlenecks. We seek to minimise days lost to sickness
via healthcare benefits and general morale and wellbeing initiatives. The Group
is a Tier 2 visa sponsor, to facilitate its objective to employ the best possible
people from the worldwide talent pool. In the last two years we have expanded
our HR team to add dedicated talent acquisition resources. We also balance
internal and external resources through outsourcing. Brexit is an obvious
ongoing concern in respect of sourcing and retaining talent from the EU,
and we continue to monitor this issue.
Staff retention
Staff departures could create staff and key Whilst there will unavoidably be some level of staff turnover, the Group
skill/experience shortages and compromise believes that its attractive project portfolio, talented staff and good quality
the execution of the Group’s business plan. leadership make Frontier a place where talented people want to build their
careers. We use our business success to deliver benefits to our people,
Links to strategy INVEST DEVELOP PUBLISH
and we offer training and development programmes alongside competitive
incentive schemes to further enhance our attractiveness as an employer.
Cyber-security
A breach of security could take many forms and We have implemented cyber-security policies, processes, technologies and tools
could significantly impact the business and impair intended to secure our data and systems, and prevent and detect unauthorised
its self-publishing plans. access to, or loss of, our data, or the data of our customers, consumers or
employees. However, because a cyber attack may remain undetected for a
Exposure includes that of failure of security at our
prolonged period of time and the techniques used by criminal hackers and
partners, including Amazon, Valve, Microsoft and Sony.
other third parties to breach systems change frequently, we may be unable
Links to strategy INVEST DEVELOP PUBLISH to anticipate these techniques or implement adequate preventative measures.
Additionally, while we maintain insurance policies, they may be insufficient
to reimburse the Company for all losses or all types of claims that may
be caused by security breaches or system disruptions.
KEY TO CHANGE IN RISKS
No change
Increase
Decrease
20 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019STRATEGIC REPORT
Description Mitigation Change
Execution risk
The Group has transitioned from a work-for-hire model to Frontier has a long history of strong project execution. Nevertheless, it is vital
a multi-franchise self-publishing model. Whilst successful Frontier continues to push itself and so avoid complacency to retain its excellent
project execution is very important under both models, execution record. It must continue to challenge its own internal assumptions and
inherently both the rewards and the risks under a those about the industry trends to remain at the forefront of the industry. The Group
self-publishing model are probably greater. remains confident that it can use its experience and expertise to continue to deliver
on the product, technology, commercial and operational aspects that support
Links to strategy INVEST DEVELOP PUBLISH
its strategy. The Group’s Frontier Publishing initiative is making good progress,
with the first partnership signed in June 2019 with experienced developer
Haemimont Games. Frontier applies a rigorous process to partner selection,
including a thorough review of execution risk on a case-by-case base for new
external opportunities such as those provided through Frontier Publishing.
Currency risk
The majority of Frontier’s resources are located in the UK and The Group has expanded its revenue sources and there has been a
therefore the Group’s operating costs are mainly in Pounds subsequent increase in revenue from non-GBP currencies in the last few
Sterling (GBP). Sales are global, in multiple countries and years. Whilst the longer-term economic risks of selling globally cannot be
in multiple currencies. The Group therefore has short-term avoided, forward contracts have been used to gain certainty over the rate
transaction and translation risks, in addition to the longer-term of conversion of foreign currency income. The Group will continue to review
economic risk of developing in the UK and selling worldwide. the most effective way of managing transaction and translation risks.
The largest exposure is the US Dollar (USD).
Links to strategy INVEST DEVELOP PUBLISH
Growth management
The Group’s future success will depend on its ability In order to mitigate the risk, the Group has invested in suitable training for
to manage and fund its anticipated expansion through key staff and key internal systems. The Group’s Board includes experienced
the utilisation of internal resources together with the Non-Executive Directors who ensure risks are managed regularly and objectively.
realisation of external opportunities such as outsourcing, The Group prudently manages its liquidity by monitoring forecast cash inflows
commissioning and publishing. These external opportunities and outflows both in the short and medium terms, as well as its long-term
may also include acquisitions. Such expansion and investment investment needs and opportunities. Frontier provides appropriate resources
are expected to place demands on management, support and attention on external opportunities to develop its game portfolio and business,
functions and working capital. If the Group is unable to such as those opportunities identified through the Group’s Frontier
manage and fund its expansion effectively, its business Publishing initiative.
and financial results could suffer.
Links to strategy INVEST DEVELOP PUBLISH
Market disruption
The Group operates in a fast-moving industry where Investing in its own COBRA technology and self-published games allows
competitive products, larger competitors, new market the Group to continue to innovate, and we seek to make our processes and
trends or disruptive technology may emerge which reduce business decisions agile and well informed so we can anticipate and exploit
its ability to compete and execute its business plan. such changes. We believe this risk is mitigated by our track record of execution
on new platforms and the flexibility demonstrated by the diverse range of video
Links to strategy INVEST DEVELOP PUBLISH
games we have successfully developed in the past. The Group is focused on
the development and ownership of IP, which it believes will create the greatest
long-term value for the Group, compared with other business models that
Frontier could pursue such as the work-for-hire model that the Group
transitioned away from in 2013–14.
This Strategic Report was approved by the Board and signed on its behalf by
ALEX BEVIS
CFO AND COMPANY SECRETARY
4 September 2019
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2019 21You can also read
