By Najat Kantouar
Frontier Developments shares fell 18% on Monday after the company said that it will miss market revenue forecasts due to lower sales results of “Realms of Ruin” than expected.
At 0822 GMT, shares were down 35.80 pence at 160.20 pence.
The U.K. video-game developer expects revenue for the year ending May 31 of between 80 million pounds and 95 million pounds ($100.8 million-$119.7 million) compared with market forecasts of GBP108 million, depending mainly on sales performance across Frontier’s game portfolio during the remainder of the financial year.
However, the company said expects to meet current market expectation for an adjusted loss before income tax, depreciation and amortization–one of the company’s preferred metrics, which strips out exceptional and other one-off items–of around GBP9 million if it meets the upper end of revenue guidance as a result of cost-reduction strategy.
Write to Najat Kantouar at [email protected]
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