Final Frontier | Adjustment mania | The market isn’t watching
News covered here includes our assessment of results from two companies in the video gaming sector. Neither fills us with a huge amount of confidence, although one looks significantly more reassuring than the other. Elsewhere, there were updates from our Bonkers Bargains and Stonking Small Caps, both of which look in great shape. (Free to read)
The final Frontier Frontier Developments (AIM: FDEV), the developer and publisher of video games, announced predictably terrible full-year results, but that was the past, what of the future? For the 12 months ending 31 May revenue fell 8.2% to £104.6m. This was achieved through the ongoing performance of games released in earlier financial years, sales from F1® Manager 2022 released in August 2022, and modest contributions from new Foundry titles released during the period. Management quotes the fairy tale adjusted EBITDA, which seems highly in appropriate given the level of development expenditure this business incurs. The operating loss of £26.6m…