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Frontier Developments PLC on Monday said that sales of a real-time strategy game that it launched 10 days ago were lower than expected.
The Cambridge-based video games developer and publisher said ’Warhammer Age of Sigmar: Realms of Ruin’ received mostly positive reviews from game critics and players; however sales have disappointed. It added that it expected sales to build over time, with the key December trading period approaching.
The company believes it will no longer meet market expectations for annual revenue.
Frontier had been expected to generate £108 million in revenue in the financial year ending May 31, which would have represented a 3.3% rise from £104.6 million in financial 2023.
It now expects annual revenue in the range of £80 million to £95 million which at worst would be a decline of 24% year-on-year.
Frontier added that market expectations of an adjusted loss before interest, tax, depreciation, and amortisation of £9 million is achievable, if revenue hits the upper end of the new range. This would mean a widening from an adjusted Ebitda loss of £4.6 million in financial 2023.
In addition, David Wilton has stepped down as chair after 12 months in the role ‘to concentrate on other interests’. Non-Executive Director Ilse Howling has replaced Wilton as chair.
Frontier shares were down 22% to 152.90 pence each on Monday morning in London.
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