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Financial Statements: January–December 2024

Key insights

6 takeaways

01
Remedy Entertainment achieved a 49.3% revenue increase to €50.7 million in 2024, driven by development fees for the Max Payne 1 & 2 remake and the commercial success of Alan Wake 2.See it on page 4
02
Alan Wake 2 surpassed two million units sold, successfully recouping all associated development and marketing costs.See it on page 5
03
The company is aggressively transitioning to a self-publishing model, supported by the acquisition of full Control franchise rights and a partnership with Annapurna Pictures to launch FBC: Firebreak in 2025.See it on page 17
04
Financial performance showed mixed results with EBITDA reaching €2.5 million (5.0% of revenue), while operating profit remained at a negative €4.3 million.See it on page 25
05
Operational cash flow improved to €12.3 million, bolstered by enhanced working-capital management and a €15 million convertible loan from Tencent.See it on page 28
06
Management has set long-term targets to double revenue and achieve a 30% EBITDA margin by 2027, opting to withhold 2024 dividends to fund these strategic initiatives.See it on page 19

Summary

The 2024 financial results for Remedy Entertainment reflect a pivotal transition toward a self-publishing business model, supported by strategic partnerships and strengthened capital reserves. Throughout the fiscal year, the company focused on scaling its internal capabilities, acquiring full rights to the Control franchise, and securing a EUR 15 million convertible loan from Tencent. These developments are intended to facilitate a shift from partner-led publishing to self-publishing, which the company anticipates will improve long-term financial upside and development velocity.

Financial performance showed significant improvement compared to the previous year. Annual revenue reached EUR 50.7 million, representing a 49.3% increase over 2023. While the company maintained a negative operating profit of EUR -4.3 million, this marked a substantial recovery from the EUR -28.6 million loss reported in 2023. EBITDA turned positive at EUR 2.5 million, compared to a loss of EUR 17.0 million in the prior year. Key drivers included the commercial success of Alan Wake 2, which surpassed two million units sold and successfully recouped its development and marketing investments, alongside ongoing revenue from development fees for projects like the Max Payne 1 & 2 remake and Control 2.

Looking ahead, the company has established a clear growth trajectory, targeting a doubling of 2024 revenue by 2027 and an EBITDA margin of 30% by that same year. The 2025 outlook remains optimistic, with expectations for both revenue and operating profit to increase and return to positive territory. The current project portfolio, including the upcoming self-published title FBC: Firebreak, is positioned to support this sustainable, profitable growth strategy. No dividend will be paid for the 2024 fiscal year.