By Anthony O. Goriainoff

Shares in Frontier Developments rose after the company reported a swing to pretax profit following a reduction in costs, and said it was confident that revenue and profit would be in line with expectations.

Shares in early European trade were up 50 pence, or 27%, at 235 pence.

The Cambridge-based videogame developer said Wednesday that for the six months ended Nov. 30, pretax profit was 4.4 million pounds ($5.4 million), compared with a pretax loss of 33.1 million pounds the prior year.

Revenue fell to 47.3 million pounds from 47.7 million pounds, in line with management expectations.

Frontier said the actions taken in the previous fiscal year to reduce costs and reshape the company delivered a turnaround in profitability of more than 9 million pounds. This led to adjusted earnings before interest, taxes, depreciation and amortization--a metric that strips out exceptional and other one-off items--of 4.4 million pounds. The company reported an adjusted Ebitda loss of 4.9 million pounds for the first half of 2023.

The company said sales were strong after the end of the period and that it experienced its third-highest festive sales performance, surpassed only by the stay-at-home boosts of 2020 and 2021.

"The board remains confident of delivering fiscal 2025 revenue and profitability in line with expectations following the strong performance achieved in the first seven months," Chief Executive Jonny Watts said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

January 15, 2025 03:43 ET (08:43 GMT)

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