Frontier Adjusts Financial Projections Following Disappointing F1 Manager Sales

Frontier Developments has revised its revenue forecasts downward for the current and upcoming financial years due to the underwhelming performance of F1 Manager 2022 and mixed results from its third-party publishing label, Foundry. In its latest trading update, the company reported expected revenues of approximately £57 million for the first half of its FY23, representing a 16% increase from the same period the previous year. However, this growth is overshadowed by the disappointing sales of F1 Manager 2022, which has sold over 600,000 units across PC, PlayStation, and Xbox, but failed to meet expectations during key holiday season promotions. The company attributes this underperformance to increased player price sensitivity amid worsening economic conditions. As a result, Frontier's board of directors has lowered its revenue projections for both FY23 and FY24, from £135 million to £100 million. The company's share price subsequently dropped by 40%. Frontier is committed to its core strengths and is focusing on increasing the return on investment from its development teams, with plans to expand its teams and nurture its existing portfolio to achieve sustainable growth. The company is also reassessing its strategy for Foundry, with no titles currently planned for release in FY24, citing mixed financial success and the need to review the label's return on investment.