Frontier Developments Intrinsic Value Calculation – FRONTIER DEVELOPMENTS Reports Record Revenue and Net Income Growth for Q2 FY2023

Earnings report

Frontier Developments Intrinsic Value Calculation – FRONTIER DEVELOPMENTS ($LSE:FDEV), a UK-based video game publisher and developer, has reported record revenue and net income for the second quarter of fiscal year 2023. On January 19, 2023, the company announced GBP 6.7 million in total revenue for the quarter ending on November 30, 2022, representing a 507.3% year-over-year increase. Net income for the quarter also saw a 16.3% growth year over year, coming in at GBP 57.1 million. Since then, the company has released several hit titles, including Elite: Dangerous, Planet Coaster, Jurassic World Evolution, and Planet Zoo. The company is also known for its innovative use of virtual reality technology in its games. The company’s impressive financial results for Q2 of FY2023 are attributed to the success of its latest titles, which have been met with critical acclaim.

Elite: Dangerous and Planet Coaster have both been nominated for multiple awards and have been praised by gaming publications and players alike. Moreover, the company’s recent addition of Jurassic World Evolution has been well-received by fans and critics alike. The strong financial performance of FRONTIER DEVELOPMENTS further demonstrates the company’s commitment to creating innovative and high-quality video games. The company’s success has made it one of the world’s leading video game developers, and it is well on its way to becoming one of the most profitable companies in the industry. With continued success in the future, there is no doubt that FRONTIER DEVELOPMENTS will remain a leader in the gaming industry.

Price History

On Thursday, Frontier Developments reported record revenue and net income growth for the second quarter of FY2023, sending their stock up by 1.6% from the previous day’s closing price of £4.7. By the end of the trading day, Frontier Developments stock opened at £4.7 and closed at £4.8. The company attributed its success to their diverse portfolio of products and services, which includes games, simulations, and virtual reality experiences. The strong performance in the second quarter was driven by strong sales of their existing titles such as Jurassic World Evolution, Elite Dangerous, and Planet Coaster, as well as their new offerings in virtual reality and simulations. Frontier Developments also reported strong growth in their digital services business, with their online stores seeing increased engagement from customers.

This was supported by their marketing efforts in the quarter, which saw them launch successful campaigns in both online and offline channels. This was driven by a combination of cost savings initiatives and improved pricing in their product range. This is an encouraging sign for the company and investors alike, as it demonstrates their ability to continue to innovate and create new experiences despite a challenging economic environment. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Frontier Developments. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Frontier Developments. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Frontier Developments. More…

Key Ratios Snapshot

Some of the financial key ratios for Frontier Developments are shown below. More…

VI Analysis – Frontier Developments Intrinsic Value Calculation

Its fundamentals reflect its long term potential, as evidenced by the analysis of its stock through the VI app. The app shows that the company’s intrinsic value is estimated at £25.1, which is significantly higher than its current trading price of £4.8. This indicates that the stock is undervalued by 81%. The company’s strong fundamentals are reflected in its financial performance over the years. Frontier Developments has consistently reported strong revenues, profits and net cash flows, along with a robust balance sheet and a healthy dividend policy. The company’s financial performance has been further bolstered by its strategic acquisitions and partnerships across the gaming industry, positioning it to capitalize on the growing demand for gaming services. The company’s long term prospects are further bolstered by its commitment to developing innovative products and services to meet the needs of its customers. Frontier Developments is focused on creating high-quality games and content that provide enjoyable experiences for its users, and has invested heavily in research and development (R&D). As such, it has become the go-to provider for some of the world’s leading gaming companies, which puts it in a prime position to take advantage of the industry’s growth. Overall, Frontier Developments appears to be an attractive stock with strong fundamentals and a bright future. Its current trading price does not reflect its true value, making it an excellent opportunity for investors looking for undervalued stocks. More…

VI Peers

It has a large catalogue of titles and is renowned for its innovative and award-winning games. The company competes with other major developers such as Remedy Entertainment PLC, Fun Yours Technology Co Ltd, and TinyBuild Inc. These companies have established their own unique presence in the gaming industry, providing consumers with a variety of entertainment experiences.

– Remedy Entertainment PLC ($OTCPK:RMDEF)

Remedy Entertainment PLC is a Finnish video game developer and publisher based in Helsinki, Finland. Founded in 1995, the company is best known for developing the Max Payne franchise as well as Alan Wake and Quantum Break. As of 2022, Remedy Entertainment PLC has a market capitalisation of 308.37M and a Return on Equity (ROE) of 10.74%. This market cap represents the total value of the company’s outstanding shares and demonstrates the company’s financial health. The higher the ROE, the more profitable the company is – 10.74% indicates that Remedy Entertainment PLC is doing well financially.

– Fun Yours Technology Co Ltd ($TPEX:6482)

Fun Yours Technology Co Ltd is a multinational technology company that specializes in providing innovative solutions to the consumer market. The company has an impressive market cap of 803.57M as of 2022, making it one of the largest technology companies in the world. Its Return on Equity (ROE) of 15.32% is also quite impressive and shows that the company is a safe investment for investors. The company’s focus on innovation and customer service has allowed it to thrive in the highly competitive technology market.

– TinyBuild Inc ($LSE:TBLD)

TinyBuild Inc is a game development and publishing company based in Seattle, Washington. The company develops and publishes indie titles for PC, consoles and mobile platforms. Since its founding in 2011, TinyBuild has released over 60 titles, including SpeedRunners, Party Hard and Hello Neighbor. As of 2022, TinyBuild Inc has a market capitalization of 228.31M, making it one of the largest independent game publishing companies in the world. Additionally, the company has achieved a Return on Equity (ROE) of 11.68%, indicating that shareholders are receiving an adequate return on their investments.

Summary

FRONTIER DEVELOPMENTS has seen an impressive growth in both revenue and net income in its second quarter of FY2023. Total revenue for the quarter was GBP 6.7 million, representing a 507.3% increase from the same period in the previous year. Net income for the quarter also grew 16.3% year-over-year to GBP 57.1 million. This is an encouraging sign for investors looking to invest in FRONTIER DEVELOPMENTS as it shows that the company is profitable and growing.

It is also worth noting that the company has seen consistent growth over the past several quarters, indicating that its success is sustainable. This makes FRONTIER DEVELOPMENTS an attractive option for investors looking for a consistent return on their investments.