Frontier Developments FY2025 H1 Earnings Release

15 January 2025
Frontier Developments plc
FY25 H1 Results – a strong turnaround
Frontier Developments plc (AIM: FDEV, ‘Frontier’, the ‘Company’, or the ‘Group’), a leading developer and publisher
of video games based in Cambridge, UK, publishes its unaudited interim results for the 6 months to 30 November
2024 (‘H1 FY25’ or the ‘Period’) and provides a trading update for December 2024.
H1 Financial Summary & Headlines
Frontier has delivered a strong turnaround in financial performance in H1 FY25, following the return to profitability
achieved in the second half of FY24.

 Revenue of £47.3m million was in line with management’s expectations.
 Actions taken in the preceding financial year to reduce costs and reshape the Company delivered a
turnaround in profitability of over £9 million to an Adjusted EBITDA* profit of £4.4 million.
 An improved cash position of £27.2 million at 30 November 2024 grew to £30.5 million at 31 December 2024,
which is before receipt of December revenue.
*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charges related to game developments and game technology, less
investments in game developments and game technology, and excluding restructuring costs, share-based payment charges and other non-cash items.

Game Portfolio Overview
Planet Coaster 2 achieved the #1 chart position on Steam at release on 6 November 2024, and contributed 22% of
total revenue in H1 FY25, despite launching less than four weeks before the end of the Period. The game is a great
addition to Frontier’s portfolio of creative management simulation (‘CMS’) games and is set to provide significant
revenue contributions over many years.

Total sales of Planet Coaster 2 across all platforms – PC, PlayStation 5 and Xbox Series S|X – exceeded 400,000 base
game units within two months of release, including through planned price promotions in December. Its
predecessor, Planet Coaster, also sold well during the festive period, including through a deep discount on Steam.
The substantial number of new Planet Coaster players added through those price promotions provides a further
opportunity to grow the Planet Coaster 2 community over time.

Planet Coaster 2 is the first of three CMS games confirmed through the strategic reset undertaken in FY23-FY24,
with the next being a third Jurassic World game, coming in FY26. The long-term strength of Frontier’s CMS-led
strategy was again evidenced in the Period through the ongoing sales performance of Frontier’s back catalogue of
established CMS games, led by Planet Zoo and Jurassic World Evolution 2.

Outside of CMS games, Frontier’s genre-leading space simulation game, Elite Dangerous, which celebrated its 10 th
anniversary in December, achieved a substantial increase in revenue in the Period through new story elements, and
the release of both free and chargeable content.

Early in the Period, on 23 July 2024, F1® Manager 2024 was released on PC, PlayStation 5, Xbox Series S|X,
PlayStation 4, Xbox One and Nintendo Switch. This built on the strengths of Frontier’s first two F1® Manager games
with the addition of the Create A Team mode to allow players to bring their own 11 th team to the grid.

H1 FY25
(6 months to 30
November 2024)
H1 FY24
(6 months to 30
November 2023)
H1 to H1
Increase / (Decrease)
Revenue £47.3m £47.7m (£0.4m)
Adjusted EBITDA profit/(loss)* £4. 4m (£4.9m) £9.3m
IFRS Operating profit/(loss) £4.5m (£33.3m) £37.8m
Cash balance at period end £27.2m £17.1m £10.1m

Trading Update and Outlook
After the end of the Period, strong sales across the portfolio in the Steam winter sale and other price promotion
events delivered Frontier’s third-highest festive sales performance, surpassed only by the stay-at-home boosted
years of 2020 and 2021.
The Board remains confident of delivering FY25 revenue and profitability in line with expectations following the
strong performance achieved in the first seven months.
Jonny Watts, Frontier’s CEO, said:
“It was great to see Planet Coaster 2 release in November, the first of three CMS games we scheduled through our
strategic reset last year. We are working hard to support and nurture the game as its player community grows.
Our established portfolio of CMS games continues to deliver and, as we begin 2025, I look ahead with excitement to
our third Jurassic World game, coming in FY26.
I remain confident in our team’s ability to deliver on our exciting roadmap and I look forward to the years ahead.”

There will be a call for analysts and institutional investors at 9:30a.m. today. To register, please contact
Frontier@teneo.com.
Enquiries :

Frontier Developments +44 (0)1223 394 300
Jonny Watts, CEO
Alex Bevis, CFO

Peel Hunt – Nomad and Joint Corporate Broker +44 (0)20 7418 8900
Neil Patel / Ben Cryer / Kate Bannatyne

Panmure Liberum – Joint Corporate Broker +44 (0)20 3100 2000
Max Jones / Nikhil Varghese

Teneo +44 (0)20 7353 4200
Matt Low / Arthur Rogers

About Frontier Developments plc
Frontier is a leading independent developer and publisher of video games founded in 1994 by David Braben, co-
author of the iconic Elite game. Based in Cambridge, Frontier uses its proprietary COBRA game development
technology to create innovative genre-leading games, primarily for personal computers and videogame consoles.
Frontier’s LEI number: 213800B9LGPWUAZ9GX18.
www.frontier.co.uk

Interim Results Statement
REVENUE AND GROSS PROFIT
H1 revenue of £47.3 million (H1 FY24: £47.7 million) was in line with management’s expectations, which was
achieved through a strong back-catalogue performance and contributions from two new games; F1® Manager 2024
(23 July 2024) and Planet Coaster 2 (6 November 2024). Planet Coaster 2 was the strongest performer of the two
games, contributing 22% of total revenue despite launching less than four weeks before the end of the Period.
The back-catalogue of games that were released before the start of the financial year continued to perform well in
H1 FY25. The largest contribution came from Frontier’s established portfolio of CMS games – Planet Coaster, Planet
Zoo, Jurassic World Evolution and Jurassic World Evolution 2 – which together recorded £24.6 million of revenue in
H1 FY25 (52% of total revenue). This represented an impressive sustain rate of 97%, versus the comparative period
(H1 FY24: £25.5 million), including through the contribution of Planet Zoo: Console Edition (released March 2024).
With new story elements and ships, Elite Dangerous revenue from both the base game and paid downloadable
content (‘PDLC’) grew versus the comparative period, with PDLC sales almost doubling through strong player
engagement.
PDLC and free downloadable content are important elements of Frontier’s post-release nurturing strategy and,
across the whole portfolio, PDLC accounted for 31% of total revenue in H1 FY25 (H1 FY24: 29%). Planet Zoo on PC
and Planet Zoo: Console Edition each benefitted from new PDLC in the Period. A PDLC pack was available for the
newly released Planet Coaster 2 alongside its launch in November, with a second PDLC releasing after the end of
the Period in December. We also released a number of free updates for Planet Coaster 2 and look forward to
engaging with the community to deliver on an exciting roadmap of content in the year ahead.
Underlying revenue, excluding subscription deals, increased by 19% from H1 FY24 to H1 FY25, with total revenue
including subscription deals reducing by 1% against the comparative period to £47.3 million (H1 FY24: £47.7
million). Subscription deals contributed over £1.7 million of revenue in H1 FY25, whereas H1 FY24 revenue
benefited from subscription deals of £9.2 million including for F1® Manager 2023 and Jurassic World Evolution 2 on
Microsoft’s Game Pass service. Subscription deals continue to provide valuable incremental income, but the timing
of deals remains difficult to predict.
Gross profit of £32.9 million in H1 FY25, being revenue less distribution costs and IP royalties, was in line with the
comparative period (H1 FY24: £33.0 million) with gross profit margin growing slightly to 70% (H1 FY24: 69%).
Frontier’s gross margin percentage tends to vary between periods based on the revenue mix between own-IP
games, licenced-IP games and subscription deals.
OPERATING COSTS
Adjusted operating costs, excluding the impact of non-cash accounting adjustments, reduced by 25% from £37.9
million in H1 FY24 to £28.5 million in H1 FY25. The significant decrease was due to the cost reductions undertaken
through Frontier’s Organisational Review in H2 FY24 and the closure of Frontier Foundry in June 2023. Costs in H1
FY25 were slightly higher (4%) than the £27.4 million recorded in H2 FY24 through marketing costs for the two
game launches in H1 FY25.
Adjusted research and development (R&D) costs fell by 21% in H1 FY25 to £19.5 million (H1 FY24: £24.7 million).
The reduction mainly resulted from lower people-related costs as a result of the Organisational Review, as well as
H1 FY24 including £1.5 million of external development funding in relation to the remaining Frontier Foundry
projects following closure in June 2023.
Adjusted sales, marketing, and administrative costs also fell significantly, reducing by 32% to £9.0 million (H1 FY24:
£13.2 million). The reduction resulted from savings on marketing costs, including through a greater focus on digital
marketing, lower people-related costs, lower recruitment costs and general cost savings across all departments.

IFRS ADJUSTING ITEMS
Total IFRS operating costs in H1 FY25 of £28.4 million were 57% lower than the £66.3 million recorded in H1 FY24,
due to a £26.7 million reduction in R&D amortisation and impairment charges, the £9.4 million reduction in adjusted
operating costs explained above, and a £2.5 million restructuring charge in H1 FY24. The significant reduction in
R&D amortisation and impairment charges resulted from the substantial charges which had been recorded in H1
FY24 against underperforming games.
FINANCIAL PERFORMANCE
Adjusted EBITDA*, which reflects cash profitability with game development costs expensed as they are incurred,
was a profit of £4.4 million in H1 FY25, representing a turnaround in profitability of over £9 million compared with
the loss of £4.9 million in H1 FY24 as a result of the significant reduction in operating costs.
*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charges related to game developments and game technology,
less investments in game developments and game technology, and excluding restructuring costs, share-based payment charges and other non-cash items.
Profit was also achieved on an IFRS basis, with an operating profit of £4.5 million in H1 FY25 compared with the loss
of £33.3 million in H1 FY24 which had resulted from intangible asset impairment and restructuring charges.
TAX
Consistent with H1 FY24, a nil corporation tax amount was recognised in H1 FY25. A net credit is expected to be
recognised in the full-year FY25 Financial Results for the anticipated Video Games Tax Relief cash claim for qualifying
development activity in the financial year. The Group will provide additional corporation tax disclosures in the FY25
Financial Statements.
PROFIT AFTER TAX AND EARNINGS PER SHARE
A profit after tax of £4.4 million was recorded in H1 FY25 (H1 FY24: loss of £33.1 million). Basic earnings per share
was 11.4 pence (H1 FY24: loss per share of 85.7 pence).
BALANCE SHEET AND CASHFLOW
The Group continues to be well capitalised, with a cash balance of £27.2 million at 30 November 2024 (31 May
2024: £29.5 million). The cash balance at 31 December 2024 grew to £30.5 million through the receipt of the Planet
Coaster 2 November launch revenue during December. Cash from the sales recorded in December will be received
from platform and channel partners in January and February.

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 NOVEMBER 2024

Notes
6 months to
30 November
2024
£’000
6 months to
30 November
2023
£’000

12 months to
31 May 2024
£’000
Revenue 5 47,291 47,677 89,270
Cost of sales (14,388) (14,714) (27,954)
Gross profit 32,903 32,963 61,316
Research and development expenses (16,294) (48,060) (67,881)
Sales and marketing expenses (5,036) (8,350) (11,635)
Administrative expenses (7,030) (7,369) (13,659)
Other operating income – – 4,851
Operating profit/(loss) before restructuring 4,543 (30,816) (27,008)
Restructuring costs – (2,500) (1,405)
Operating profit/(loss) 4,543 (33,316) (28,413)
Net finance (costs)/income (145) 217 (12)
Profit/(loss) before tax 4,398 (33,099) (28,425)
Income tax credit – – 6,953
Profit/(loss) for the period attributable to shareholders 4,398 (33,099) (21,472)

6 months to
30 November
2024
p
6 months to
30 November
2023
p

12 months to
31 May 2024
p
Earnings/(loss) per share
Basic earnings/(loss) per share 6 11.4 (85.7) (55.6)
Diluted earnings/(loss) per share 6 11.1 (85.7) (55.6)

All the activities of the Group are classified as continuing.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 NOVEMBER 2024

6 months to
30 November
2024
£’000
6 months to
30 November
2023
£’000

12 months to
31 May 2024
£’000
Profit/(loss) for the period 4,398 (33,099) (21,472)
Other comprehensive income
Items that will be reclassified subsequently to profit or
loss:

Exchange differences on translation of foreign operations (199) (146) (277)
Total comprehensive income/(loss) for the period
attributable to the equity holders of the parent
4,199 (33,245) (21,749)

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2024

(REGISTERED COMPANY NO: 02892559)

Note
30 November
2024
£’000
30 November
2023
£’000
31 May
2024
£’000
Non-current assets
Goodwill 6,781 7,027 6,954
Other intangible assets 7 37,370 33,746 35,702
Property, plant and equipment 4,291 5,415 4,739
Right-of-use assets 18,625 17,506 19,661
Total non-current assets 67,067 63,694 67,056
Current assets
Trade and other receivables 18,684 19,132 13,590
Current tax assets 7,207 5,805 7,216
Cash and cash equivalents 27,241 17,134 29,523
Total current assets 53,132 42,071 50,329
Total assets 120,199 105,765 117,385
Current liabilities
Trade and other payables (12,251) (13,929) (11,096)
Provisions – (1,758) –
Lease liabilities (1,801) (1,597) (1,748)
Deferred income (3,429) (2,457) (4,351)
Total current liabilities (17,481) (19,741) (17,195)
Net current assets 35,651 22,330 33,134
Non-current liabilities
Provisions (92) (78) (85)
Lease liabilities (18,609) (17,416) (19,535)
Other payables (671) (3,836) (3,101)
Deferred income (591) – (256)
Deferred tax liabilities (381) (411) (390)
Total non-current liabilities (20,344) (21,741) (23,367)
Total liabilities (37,825) (41,482) (40,562)
Net assets 82,374 64,283 76,823
Equity
Share capital 197 197 197
Share premium account 36,547 36,547 36,547
Equity reserve (13,612) (13,953) (13,283)
Foreign exchange reserve (1,072) (742) (873)
Retained earnings 60,314 42,234 54,235
Total equity 82,374 64,283 76,823

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 NOVEMBER 2024

Share
capital
£’000
Share
premium
account
£’000
Equity
reserve
£’000
Foreign
exchange
reserve
£’000
Retained
earnings
£’000
Total
equity
£’000
At 31 May 2023 197 36,547 (14,553) (596) 74,373 95,968
Loss for the period – – – – (33,099) (33,099)
Other comprehensive income:
Exchange differences on translation of
foreign operations – – – (146) – (146)
Total comprehensive loss for the period – – – (146) (33,099) (33,245)
Share-based payment charges – – 1,559 – – 1,559
Share -based payment transfer relating to
option exercises and lapses – – (960) – 960 –
Employee Benefit Trust net cash inflows
from option exercises – – 1 – – 1
Transactions with owners – – 600 – 960 1,560
At 30 November 2023 197 36,547 (13,953) (742) 42,234 64,283
Profit for the period – – – – 11,627 11,627
Other comprehensive income:
Exchange differences on translation of
foreign operations – – – (131) – (131)
Total c omprehensive income/( loss ) for the
period – – – (131) 11,627 11,496
Share-based payment charges – – 1,218 – – 1,218
Share -based payment transfer relating to
option exercises and lapses – – (548) – 548 –
Deferred tax movements posted directly to
reserves – – – – (174) (174)
Transactions with owners – – 670 – 374 1,044
At 31 May 2024 197 36,547 (13,283) (873) 54,235 76,823
Profit for the period – – – – 4,398 4,398
Other comprehensive income:
Exchange differences on translation of
foreign operations – – – (199) – (199)
Total comprehensive income /(loss) for the
period – – – (199) 4,398 4,199
Share-based payment charges – – 1,248 – – 1,248
Share -based payment transfer relating to
option exercises and lapses – – (1,681) – 1,681 –
Employee Benefit Trust net cash inflows
from option exercises – – 104 – – 104
Transactions with owners – – (329) – 1,681 1,352
At 30 November 2024 197 36,547 (13,612) (1,072) 60,314 82,374

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE PERIOD ENDED 30 NOVEMBER 2024

6 months to
30 November
2024
£’000
6 months to
30 November
2023
£’000

12 months to
31 May 2024
£’000
Profit/(loss) before taxation 4,398 (33,099) (28,425)
Adjustments for :
Depreciation and amortisation 12,874 24,467 36,892
Impairment of other intangible assets – 16,930 16,930
Movement in unrealised exchange gains on forward contracts 611 (114) (37)
Share-based payment expenses 1,248 1,559 2,778
Interest received (386) (504) (832)
Payment of interest element of lease liabilities 531 287 844
Other operating income – – (4,851)
Working capital changes:
Change in trade and other receivables (5,373) (3,460) 3,661
Change in trade and other payables 300 (6,150) (4,557)
Change in provisions 7 1,765 14
Cash generated from operations 14,210 1,681 22,417
Taxes received – 3,683 9,208
Net cashflows from operating activities 14,210 5,364 31,625
Investing activities
Purchase of property, plant and equipment (229) (787) (960)
Expenditure on other intangible assets (15,576) (15,227) (29,419)
Payments for contingent consideration on business acquisitions – – (1,516)
Sale of RollerCoaster Tycoon 3 publishing rights 195 – 3,195
Interest received 386 504 832
Net cashflows used in investing activities (15,224) (15,510) (27,868)
Financing activities
Employee Benefit Trust cash inflows from option exercises 104 1 –
Payment of principal element of lease liabilities (854) (747) (1,665)
Payment of interest element of lease liabilities (531) (287) (844)
Net cashflows used in financing activities (1,281) (1,033) (2,509)
Net change in cash and cash equivalents from continuing
operations (2,295) (11,179) 1,248
Cash and cash equivalents at beginning of period 29,523 28,311 28,311
Exchange differences on cash and cash equivalents 13 2 (36)
Cash and cash equivalents at end of period 27,241 17,134 29,523

NOTES TO THE FINANCIAL INFORMATION
1. CORPORATE INFORMATION
Frontier Developments plc (the ‘Group’ or the ‘Company’) develops and publishes video games for the interactive
entertainment sector. The Company is a public limited company and is incorporated and domiciled in the United
Kingdom.
The address of its registered office is 26 Science Park, Milton Road, Cambridge CB4 0FP.
The Group’s operations are based and headquartered in the UK, with subsidiaries based in Canada and the US.
2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
Basis of preparation
The consolidated interim financial statements have been prepared in accordance with International Accounting
Standard 34 ‘Interim Financial Reporting’ (IAS 34), as issued by the International Accounting Standards Board (IASB)
and as adopted by the UK, and the disclosure requirements of the Listing Rules.
The consolidated interim financial statements do not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006 and have not been audited or reviewed by the Company’s auditors.
The consolidated interim financial statements should be read in conjunction with the financial statements for the
year ended 31 May 2024.
Statutory accounts for the year ended 31 May 2024 were approved by the Board of Directors on 10 September
2024 and delivered to the Registrar of Companies. The Auditor’s Report was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
The financial information has been prepared under the historical cost convention except for financial instruments
held at fair value. The financial information is presented in Sterling, the presentation and functional currency for
the Group and Company. All values are rounded to the nearest thousand pounds (£’000) except when otherwise
indicated.
Going concern basis
The Group’s and Company’s forecasts and projections, taking account of current cash resources and reasonably
possible changes in trading performance, support the conclusion that there is a reasonable expectation that the
Group and Company has adequate resources to continue in operational existence for a period of not less than 12
months from the date of the consolidated interim financial statements. The Group and Company therefore continue
to adopt the going concern basis in preparing their financial statements.

3. ACCOUNTING POLICIES
The consolidated interim financial statements have been prepared in accordance with the accounting policies
adopted in the Group’s most recent annual financial statements for the year ended 31 May 2024.
4. ACCOUNTING ESTIMATES AND KEY JUDGEMENTS
When preparing the consolidated interim financial statements, management undertakes a number of
judgements, estimates and assumptions about recognition and measurements of assets, liabilities, income and
expenses. The actual results may differ from these estimates.
The judgements, estimates and assumptions applied in the interim financial statements, including the key sources
of estimation uncertainty, were the same as those applied in the Group’s last annual financial statements for the
year ended 31 May 2024.

5. SEGMENT INFORMATION
The Group identifies operating segments based on internal management reporting that is regularly reviewed by
the chief operating decision maker and reported to the Board. The chief operating decision maker is the Chief
Executive Officer.
Management information is reported as one operating segment, being revenue from publishing games and
revenue from other streams such as royalties and licensing.
The Group does not provide any information on the geographical location of sales as the majority of revenue is
through third-party distribution platforms which are responsible for the sales data of consumers. The cost to
develop this information internally would be excessive.
The majority of the Group’s non-current assets are held within the UK.
All material revenue is categorised as either publishing revenue or other revenue.
The Group typically satisfies its performance obligations at the point that the product becomes available to the
customer and payment is received upfront by the distributors.
Other revenue mainly related to royalty income in all periods.

6 months to 30
November 2024
£’000
6 months to 30
November 2023
£’000
12 months to 31
May 2024
£’000
Publishing revenue 47,129 46,654 88,096
Other revenue 162 1,023 1,174
Total revenue 47,291 47,677 89,270
Cost of sales (14,388) (14,714) (27,954)
Gross profit 32,903 32,963 61,316
Research and development expenses (16,294) (48,060) (67,881)
Sales and marketing expenses (5,036) (8,350) (11,635)
Administrative expenses (7,030) (7,369) (13,659)
Other operating income – – 4,851
Operating profit/(loss) before restructuring 4,543 (30,816) (27,008)
Restructuring costs – (2,500) (1,405)
Operating profit/(loss) 4,543 (33,316) (28,413)
Net finance (costs)/income (145) 217 (12)
Profit/(loss) before tax 4,398 (33,099) (28,425)
Income tax credit – – 6,953
Profit/(loss) for the period attributable to shareholders 4,398 (33,099) (21,472)

6. EARNINGS/(LOSS) PER SHARE
The calculation of the basic earnings/(loss) per share is based on the profits/(losses) attributable to the
shareholders of Frontier Developments plc divided by the weighted average number of shares in issue during the
year.

6 months to
30
November
2024
6 months to
30
November
2023

12 months
to 31 May
2024
Profit/(loss) attributable to shareholders (£’000) 4,398 (33,099) (21,472)
Weighted average number of shares 38,649,551 38,601,286 38,608,645
Basic earnings/(loss) per share (p) 11.4 (85.7) (55.6)
The calculation of the diluted earnings/(loss) per share is based on the profits/(losses) attributable to the
shareholders of Frontier Developments plc divided by the weighted average number of shares in issue during the
year as adjusted for the dilutive effect of share options.

6 months to
30
November
2024
6 months to
30
November
2023

12 months
to 31 May
2024
Profit/(loss) attributable to shareholders (£’000) 4,398 (33,099) (21,472)
Diluted weighted average number of shares 39,759,771 38,601,286 38,608,645
Diluted earnings/(loss) per share (p) 11.1 (85.7) (55.6)
The reconciliation of the average number of Ordinary Shares used for basic and diluted earnings/(loss) per share
is as follows:

6 months to
30
November
2024
6 months to
30
November
2023

12 months
to 31 May
2024
Weighted average number of shares 38,649,551 38,601,286 38,608,645
Dilutive effect of share options 1,110,220 – –
Diluted average number of shares 39,759,771 38,601,286 38,608,645

7. OTHER INTANGIBLE ASSETS

Game
technology
£’000
Game
developments
£’000
Third-party
software
£’000

IP licences
£’000

Total
£’000
Cost
At 31 May 2023 23,182 167,185 2,877 11,185 204,429
Additions 2,218 12,835 174 1,047 16,274
Exchange rate movement – (86) – – (86)
At 30 November 2023 25,400 179,934 3,051 12,232 220,617
Additions 2,340 9,128 262 792 12,522
Disposals – (490) – – (490)
Exchange rate movement – (64) (1) – (65)
At 31 May 2024 27,740 188,508 3,312 13,024 232,584
Additions 2,498 12,103 204 – 14,805
Disposals – – – (1,915) (1,915)
Exchange rate movement – (143) (1) – (144)
At 30 November 2024 30,238 200,468 3,515 11,109 245,330

Amortisation and impairment
At 31 May 2023 16,961 122,212 2,130 6,139 147,442
Amortisation charges 1,542 19,124 211 1,686 22,563
Impairment charges – 15,502 – 1,428 16,930
Exchange rate movement – (64) – – (64)
At 30 November 2023 18,503 156,774 2,341 9,253 186,871
Amortisation charges 1,472 8,827 232 16 10,547
Disposals – (490) – – (490)
Exchange rate movement – (45) (1) – (46)
At 31 May 2024 19,975 165,066 2,572 9,269 196,882
Amortisation charges 1,788 9,156 237 – 11,181
Exchange rate movement – (102) (1) – (103)
At 30 November 2024 21,763 174,120 2,808 9,269 207,960

Net book value
Net book value at 30 November 2024 8,475 26,348 707 1,840 37,370
Net book value at 31 May 2024 7,765 23,442 740 3,755 35,702
Net book value at 30 November 2023 6,897 23,160 710 2,979 33,746
Net book value at 31 May 2023 6,221 44,973 747 5,046 56,987

8. KEY PERFORMANCE INDICATORS – NON-STATUTORY MEASURES
In addition to measures of financial performance derived from IFRS-reported results – revenue, operating profit,
operating profit margin percentage, earnings per share, and cash balance – we have published and provided
commentary on our financial performance measurements, derived from non-statutory calculations. We believe
these supplementary measures, when read in conjunction with the measures derived directly from statutory
financial reporting, provide a better understanding of our overall financial performance.
EBITDA
EBITDA, being earnings before tax, interest, depreciation, and amortisation, is commonly used by investors when
assessing the financial performance of companies. It attempts to arrive at a ‘cash profit’ figure by adjusting
operating profit for non-cash depreciation and amortisation charges. In our case, EBITDA does not provide a clear
picture of our cash profitability, as it adds back amortisation charges relating to game developments, but without
deducting the investment costs for those developments, resulting in a profit measure which does not take into
account any of the costs associated with developing games. Since EBITDA is a commonly used financial performance
measure, it has been included below for the benefit of readers of the accounts who may value that measure of
performance.
6 months to
30 November 2024
£’000
6 months to
30 November 2023
£’000
12 months to
31 May 2024
£’000
Operating profit/(loss) 4,543 (33,316) (28,413)
Restructuring costs –2,500 1,405
Depreciation and amortisation 12,874 24,46736,892
Impairment of other intangible assets –16,930 16,930
EBITDA 17,417 10,581
26,814
Adjusted EBITDA
Our Adjusted EBITDA measure, in our view, provides a better representation of ‘cash profit’ than EBITDA. We define
Adjusted EBITDA as earnings before interest, tax, depreciation, amortisation and impairment charges related to
game developments and game technology, less investments in game developments and game technology, and
excluding restructuring costs, share-based payment charges and other non-cash items. This effectively provides the
cash profit figure that would have been achieved if we expensed all game development investment as it was
incurred, rather than capitalising those costs and amortising them over several years.
6 months to
30 November
2024

£’000
6 months to
30 November 2023

£’000
12 months
to 31 May
2024
£’000
Operating profit/(loss) 4,543 (33,316) (28,413)
Add back non -cash intangible asset amortisation charges
for game developments and game technology 10,944 20,666 30,965
Add back non -cash intangible asset impairment charges – 16,930 16,930
Deduct capitalised investment costs in game developments
and game technology (14,601) (15,054)
(26,520)
Add back non-cash depreciation charges 1,693
1,904 3,782
Add back /(deduct) non -cash movements in unrealised
exchange (gains)/losses on forward contracts 611 (114)
(37)
Add back non-cash share-based payment expenses 1,248
1,559 2,778
Add back restructuring costs –2,500 1,405
Adjusted EBITDA profit/(loss) 4,438
(4,925) 890