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Frontier to develop Formula One games

The video game developer has secured an exclusive multi-year licence with F1
March 10, 2020

Video game company Frontier Developments (FDEV) has secured an exclusive game licence with Formula 1 (F1), on top of two other third-party publishing contracts. The shares were up as much as 13 per cent in response.  

IC TIP: Buy at 1,274p

The deal means that the company has multi-year rights to develop and publish F1 management games for PC and console platforms, with the first expected to be released for the 2022 F1 season. The licence will provide Frontier with the rights for four F1 seasons, up to and including 2025.

Management noted that the 2022 financial year outlook has been “further strengthened”, not only by the new F1 licence win, but also driven by progress in Frontier’s publishing business. The company now has five third-party publishing deals, and has hinted that “a number of additional opportunities...are in discussion”. 

Broker Liberum upgraded its target price from 1,875p to 2,000p on 10 March.