Q1 2021 Review: Remedy Entertainment

Key insights

6 takeaways

01
Remedy raised 41.5 million euros through a directed share offering to increase production capacity and enable future self-publishing of titles.See it on page 4
02
The company reported Q1 2021 revenue of 8.1 million euros, a 3.4% year-over-year increase, with an operating profit of 0.9 million euros.See it on page 22
03
Remedy is executing a multi-project strategy involving the Control franchise, two Crossfire titles with Smilegate, multiple projects with Epic Games, and the free-to-play game Vanguard.See it on page 9
04
The studio is scaling its production capabilities with a workforce of 274 internal staff and 31 external development partners.See it on page 5
05
Management projects growth in both revenue and EBIT for the remainder of 2021, with stronger performance expected in the second half of the year.See it on page 22
06
The long-term corporate strategy is to own at least three expanding game brands and maintain the flexibility to choose between self-publishing and partnership models for each project.See it on page 18

Summary

Remedy Entertainment’s Q1 2021 review outlines a period of steady financial performance and strategic expansion. The company reported revenue of 8.1 million euros, representing a 3.4% increase year-over-year, and an operating profit of 0.9 million euros. A significant capital milestone was achieved through a directed share offering that raised 41.5 million euros, intended to bolster production capabilities and provide the financial flexibility to self-finance and self-publish future titles.

The company’s operational focus remains on a multi-project model, balancing internal IP development with external partnerships. Current projects include the continued support of the Control franchise, the development of two Crossfire-related titles in collaboration with Smilegate, and multiple projects with Epic Games. Additionally, the company is advancing Vanguard, a service-based, free-to-play multiplayer game. These efforts are supported by a workforce of 274 internal staff and a network of 31 external development partners, reflecting a deliberate strategy to scale production capacity in a competitive global market where independent AAA-capable studios are increasingly rare.

Looking ahead, Remedy maintains a positive outlook for the remainder of 2021, anticipating growth in both revenue and EBIT, particularly in the second half of the year. The company’s long-term strategy centers on owning at least three expanding game brands and establishing the flexibility to choose between self-publishing and partnership models for each project. By leveraging the growth of the global gaming market—which reached 175 billion dollars in 2020—and capitalizing on the transition to new-generation console hardware, Remedy aims to transition from a project-based developer to a creator of long-term, high-value gaming franchises.