Remedy Entertainment Financial Statement and Board of Directors' Report 2023

Key insights

6 takeaways

01
Remedy Entertainment reported a 22.2% revenue decline to EUR 33.9 million and an operating loss of EUR 28.6 million for the 2023 fiscal year.See it on page 4
02
The company’s cash reserves dropped from EUR 49.0 million to approximately EUR 20.0 million, leading the Board to propose no dividend distribution for 2023.See it on page 42
03
A EUR 7.2 million impairment charge was recorded following the reboot of the project formerly known as Vanguard, now rebranded as Codename Kestrel.See it on page 35
04
Alan Wake 2 became the company's fastest-selling title, surpassing one million units sold by the end of 2023.See it on page 4
05
Remedy acquired full rights to the Control franchise from 505 Games in early 2024 to increase control over its intellectual property and future monetization.See it on page 51
06
Despite financial losses, the company maintains a stable capital structure with an 85.5% equity ratio and minimal financial liabilities.See it on page 55

Summary

Remedy Entertainment experienced a difficult fiscal year in 2023, characterized by a 22.2% decline in revenue to EUR 33.9 million and an operating loss of EUR 28.6 million. This financial downturn was primarily driven by heavy self-investment in game development and a significant EUR 7.2 million impairment charge resulting from the reboot of the project formerly known as Vanguard, now Codename Kestrel. Consequently, the company’s cash and cash equivalents decreased from EUR 49.0 million to approximately EUR 20.0 million. In light of the net loss of EUR 22.9 million, the Board of Directors has proposed that no dividends be distributed for the 2023 fiscal year.

Despite these headwinds, the company achieved a major operational milestone with the launch of Alan Wake 2, which became its fastest-selling title to date with over one million units sold by year-end. To secure its long-term growth trajectory, Remedy has pivoted toward a strategy of owning and controlling its intellectual property, evidenced by the acquisition of full rights to the Control franchise from 505 Games in early 2024. This move is intended to strengthen the company’s portfolio and provide greater autonomy over future development and monetization.

Operationally, the company maintains a stable capital structure with an equity ratio of 85.5% and minimal financial liabilities. Management continues to utilize share-based incentive programs, with over 1.3 million options outstanding, to retain key personnel. While the company faces the inherent risks of high-budget game development, auditors have confirmed the firm’s status as a going concern. Moving forward, the organization remains focused on balancing its ambitious development pipeline with prudent liquidity management, leveraging its established IP to navigate the competitive global gaming landscape.