Frontier Developments Investors - FDEV

Frontier Developments Investors - FDEV

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Stock Name Stock Symbol Market Stock Type
Frontier Developments Plc FDEV London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-30.00 -1.12% 2,640.00 16:35:27
Open Price Low Price High Price Close Price Previous Close
2,625.00 2,620.00 2,700.00 2,640.00 2,670.00
more quote information »
Industry Sector

Top Investor Posts

sogoesit: Discussion about the Metaverse (but no mention of the games producers!)... htTps:// Full Year Results due "Early September 2021" Last year on 9 September. Might the rally continue into results day? (The current rally projected would meet the declining trend line of recent "peaks" for "next peak" at approx. 3010 on my weekly charts. Support is 2130/2300). htTps://
speedsgh: From today's Sunday Times... Frontier will stay a gaming pioneer - HTTPS:// Back in the 1980s, two gamers struck up a friendship at university. The students, David Braben and Ian Bell, created Elite, an immersive space simulation where players roamed galaxies on a spaceship. It was revolutionary for its time, and the pair became millionaires. They eventually parted ways and Braben founded Frontier Developments in 1994, listing it on AIM in 2013. Since then, the shares have risen by more than 1,500 per cent — surging recently thanks to a gaming boom during the pandemic. It has become a multibillion-pound sector, and Frontier is at the front of the pack among British developers. Over the years, it has shifted from developing games for third parties to publishing its own, which has boosted margins. It has won big licensing deals including with Universal Studios for Jurassic World Evolution, and with Games Workshop for Warhammer. And in a world where social media is driving trends, Frontier has increasingly used influencers to advertise its games on sites such as Twitch and YouTube. Braben will no doubt be keeping a close eye on his rivals. Sumo Group, which worked on the Fast & Furious franchise, was snapped up by Tencent last month. The Chinese tech group is also an investor in Frontier, with a 9 per cent stake bought in 2017. There will be more dealmaking ahead as console-focused publishers snap up mobile app developers to expand their reach. Bigger platforms also want to secure exclusive content. For Frontier, revenue growth has tended to be erratic, depending on the date of releases in any one year. Braben, 57, apologised to customers in May after a new game, Elite Dangerous: Odyssey, had performance issues. Frontier also revealed that a new Formula One management game would be released later than expected. However, there are reasons to be optimistic. Frontier plans to release a sequel to Jurassic World Evolution this year, and it will benefit when Universal releases the film Jurassic World: Dominion next June. The first iteration of this game earned more than £70 million in its first year. Analysts have pencilled in £40 million for Frontier for its new game. When it reports at the start of next month, the company is expected to announce a 20 per cent rise in sales to £91 million for the 12 months to the end of May, at the lower end of its range. Frontier’s slightly bumpy year is reflected its shares: they rose to a high of £34.30 in January before retreating, closing on Friday at £25.95, valuing it at about £1 billion. Now may be the time to buy.
sogoesit: The article from SharesMag makw61 refers to: "Frontier Developments is a UK gaming star Owners of quality content should be seen as prized assets in a fast-growing space The number of investing options available for UK investors to get exposure to the fast-growing video gaming industry in the UK appear to be shrinking fast after this week’s bid for video games for hire developer Sumo (SUMO:AIM) from Chinese internet giant Tencent. Of the remaining three direct quoted plays, the name that stands out because of its deep intellectual property and the rich user experience it provides is fantasy games developer and publisher Frontier Developments (FDEV:AIM). Frontier was founded by industry veteran David Braben who co-authored the seminal game Elite and owns a 32.8% stake in the company. Even after an 8% gain on the day of the Sumo announcement, Frontier’s shares are still 30% below their January highs, which we believe presents a good opportunity to get onboard. The fall in the shares looks like it was driven by temporary factors. Firstly, positive sentiment towards the sector has waned since the removal of restrictions, along with other sectors that have benefited from the lockdown. Secondly, Frontier has had some teething issues with Elite Dangerous Odyssey which was released on PC on 19 May and prompted user criticism. The company believes these issues have been resolved without any long-term reputational damage. STRONG ROSTER OF RELEASES One of the key attractions of Frontier is its strong roster of game releases over the next few years and a fast-growing third-party publishing arm, Frontier Foundry, which is expected to release three new titles in the current fiscal year to 31 May and then five-to-six games per year from 2023. One release which has creating some excitement is a new game based on the popular Warhammer 40,000 franchise owned by Games Worksop (GAW), due to be released on PC in 2022 on Steam and the Epic Games Store. Meanwhile, the annual F1 Manager is expected to launch in early fiscal 2023 (after 1 June 2022). An underappreciated aspect of Frontier’s games, argues investment bank Jefferies, is its focus on regular content updates, user generated creative content and an ever-evolving game play experience. This means Frontier attracts stickier users which will be a big advantage as the working practices normalise post pandemic. The recent increase in Covid-19 infections also suggests that indoors activities may continue to dominate people’s recreational time longer than some had thought. Jefferies estimates that Frontier’s strong release schedule and back catalogue will lead to sector leading revenue growth of around 60% in 2023, and yet the investment bank reckons that, looking at earnings growth and the price-to-earnings ration on a two-year view, the shares trade at a valuation discount to peers Team 17 (TEAM:AIM) and Keywords Studios (KWS:AIM). Consensus forecasts put the shares on a May 2022 PE of 33 times. While not stunningly cheap we believe that recent weakness represents a great opportunity to get exposure to the fast growing gaming industry. [MG]"
speedsgh: FDEV tipped as a buy in today's Tempus column in The Times...
adamb1978: Fledgling Ignore that guy - stick him on filter. Have a look at his posting history and you can see that there is clearly some personal issue which he has with the company. No normal investor posts solely on one board with only negative views over such a long period of time Adam
adamb1978: Yank "a rescue from a cash crisis"?!? This gets even weirder. First you said that the Tencent investment somehow meant that FDEV's growth wasn't all organic, and now they were on the verge of going bust? In 2017 Tencent took a c.9% stake at a price which, to quote the RNS, was "calculated as the last 20 trading days volume weighted average price (VWAP) immediately prior to subscription." Rescues happen at heavily discounted prices, not at in effect the market price. They happen at those discounted prices because the investor holds the whip hand and wants a great deal to save a failing business. Equity raisings which happen at the market price at done at that price because the company is performing well and the company can dictate the price. It was also completed in July 2017 and their balance sheet 2 months before had £12.7m net cash. Companies which are growing often issue equity to accelerate growth, and therefore one thing which is always worth checking in growth companies is how much equity a company has issued to fund that growth. Obviously if a company is issuing piles of equity to generate growth, it might actually be destroying value for shareholders as an individual shareholder gets diluted to a greater extent than the value creation from the growth. However, as I said before, FDEV have increased their share cap by 15% over 5 years, including the Tencent invest, which is a very low amount (so is very good). Your point about whether there have been any strategic benefits from the investment is, however, valid. Its not clear to me that the relationship with Tencent has created any value over and above the cash injected. However, had FDEV not raised equity from Tencent then they would have presumably raised the same amount, to accelerate the same growth, from institutions. Therefore any strategic benefits is really upside, rather than necessary. People taking the other side of an argument is good, and these boards are often full of hype, however this criticism of the Tencent investment really hold little to no water. Adam
pob69: Article with liberum and shore cap comments hTTps://
sogoesit: Great comments... This company is definitely a long term game in my view (10 years plus). Their announced pipeline to date means an investor probably has to wait at least 3, if not 5, years to be able to gauge the results of the current work. So that leaves the future pipeline build as a bonus as well. Release cycle or not, that's how the pipeline is set. We, the market, should know that (I didn't when I started, however). The only way to overcome this is to invest more in people and systems as one would in any factory. But I don't think that's the way UK management, and investors, think. The US investor culture, however, is another matter. My prediction is is that the likelihood of it being sold is high. I give it 10/15 years or so.
fledgling1nvestor: Frontier are no stranger so such criticism on major Elite Dangerous updates. The Horizons launch was mired in just as much criticism at the time. Odyssey was clearly pushed out before it was in a fit state in order to lock in that pre-order revenue and get a couple of weeks of sales before their financial year ends on May 31st. The alternative was having to declare it as deferred revenue, potentially having to issue a profit warning. Whilst the Steam reviews are heavily in negative territory the quantity of reviews in itself is encouraging given the Gamasutra article we've discussed previously (probably around a year back) which uses review numbers to estimate owner numbers. Here it is again for those that missed it: hTTps:// Anyway the tldr; is the median for owner numbers was found to be a 77x multiplier so 3705 reviews (as I write this) should equate to approximately 285,285 units shipped on Steam. This in addition to any from Epic Store's 8m owners of the base game from the recent free game of the week campaign probably makes for a pretty successful launch for Frontier, perhaps 500K units already. Investor uncertainty may lead to a dip but I'm calling it now, the trading update they tend to publish a week or two into June will state they are expecting to hit their analyst targets. Give it a couple of weeks and things with the community will blow over once most of the game breaking bugs have been tackled.
sogoesit: Hi Alphabeta... the Chronic Investor publishes forecasts. Don't know where they get the data from. Will check SharesMag and see what they say. EDIT: Nope, SharesMag doesn't do forecasts. Chronic Investor say they have 11 analysts' data (on FDEV).
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