Remedy Entertainment Plc: Business Review January-September 2024

Remedy Entertainment’s business review for the first nine months of 2024 highlights a strategic transition toward self-publishing and the strengthening of its internal intellectual property portfolio. The company reported significant financial growth, with third-quarter revenue rising 128.6% to EUR 17.9 million and operating profit reaching EUR 2.4 million, a marked improvement from the EUR 5.5 million loss recorded in the same period of 2023. This growth was primarily driven by development fees associated with the Control 2 project and the Max Payne 1&2 Remake.

The company’s strategic shift is underpinned by key partnerships and capital acquisitions. In February 2024, Remedy secured full rights to the Control franchise, enabling greater control over its commercialization. To support its self-publishing ambitions, the firm entered a strategic partnership with Annapurna, which will finance 50% of the development budget for Control 2 while gaining rights to adapt the Control and Alan Wake franchises for film and television. Additionally, a EUR 15 million convertible loan agreement with Tencent was finalized to bolster the company’s financial position and value chain independence.

Operational progress remains steady across the studio’s core projects. The upcoming title FBC: Firebreak is slated for a 2025 release, marking a significant step in the company’s self-publishing strategy. Meanwhile, the Max Payne 1&2 Remake continues in full production, and the Alan Wake 2 franchise has successfully recouped most of its development and marketing costs. While the company expects revenue to increase for the full fiscal year, it maintains that operating profit will remain negative as it prioritizes long-term value creation over short-term development fees associated with traditional publishing models.