Historically, the performance of video game developers has been similar to that of small film studios – periodically release a new title and hope it is a hit. This is reflected in the peaks and troughs of Frontier Developments’ (FDEV) historical annual profits. But, as it has grown, the group has started to marry its track record of producing winning new titles with more frequent releases, a steady stream of new content to bolster its existing games, and development of a publishing initiative to deepen its pipeline of launches.
IC TIP:
Buy
at
1,212p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
Chart-topping releases
Publishing initiative
Increased franchise launches
Strong balance sheet
Bear points
Lumpy revenues
Recent CEO share sale