Remedy Entertainment Business Review: January 1 – March 31, 2022

Key insights

6 takeaways

01
Remedy Entertainment reported Q1 2022 revenue of 12.66 million euros, a 55.9% increase year-over-year, driven by development fees from projects including Alan Wake 2, Codename Vanguard, and Codename Condor.See it on page 2
02
Operating profit improved to 2.76 million euros from a 0.20 million euro loss in Q1 2021, while cash flow from operations reached a record high of 17.71 million euros.See it on page 1
03
The company entered a partnership with Rockstar Games to develop remakes of Max Payne and Max Payne 2, while also launching CrossfireX on Xbox platforms in February 2022.See it on page 2
04
Remedy successfully transitioned from the First North Growth Market to the Nasdaq Helsinki official list in May 2022 and expanded its international presence by opening a Swedish subsidiary.See it on page 1
05
The business model is shifting toward predictable, long-term development fees from high-profile partnerships, offsetting the expected decline in royalty revenue from existing titles like Control.See it on page 3
06
The company is maintaining a heavy investment strategy in personnel and external development to support a pipeline of major game launches scheduled between 2023 and 2025.See it on page 3

Summary

Remedy Entertainment’s business review for the first quarter of 2022 highlights a period of significant financial growth and strategic expansion. The company reported revenue of 12.66 million euros, representing a 55.9% increase compared to the same period in 2021. This growth was primarily driven by development fees from ongoing game projects, including Alan Wake 2, Codename Vanguard, and Codename Condor. Operating profit reached 2.76 million euros, a notable improvement over the 0.20 million euro loss recorded in the first quarter of 2021, while cash flow from operations reached a record high of 17.71 million euros.

The company’s operational focus remains on its multi-project development pipeline, with major launches anticipated between 2023 and 2025. Key milestones during the quarter included the February launch of CrossfireX on Xbox platforms and the subsequent announcement of a partnership with Rockstar Games to develop remakes of Max Payne and Max Payne 2. Additionally, the company strengthened its international footprint by establishing a subsidiary in Sweden and successfully completed its transition from the First North Growth Market to the Nasdaq Helsinki official list in May 2022.

The financial results reflect a business model increasingly reliant on predictable, long-term development fees from high-profile partnerships, supplemented by scalable, albeit more variable, royalty streams. While royalty revenue from existing titles like Control declined as expected, the company continues to invest heavily in personnel and external development to support its ambitious roadmap. With a robust cash position and a clear strategy for long-term growth, the company maintains its outlook for revenue expansion while managing the inherent volatility associated with the game development lifecycle.