Remedy Financial Statements Release 2017

Key insights

7 takeaways

01
Remedy Entertainment transitioned to a multi-project model in 2017, resulting in a 49.2% decline in operating profit to €2.0 million and a 57.5% drop in earnings per share to €0.122.See it on page 5
02
Revenue grew by 4.6% to €17.2 million, supported by development fees from two concurrent projects and legacy title royalties.See it on page 3
03
The company ended 2017 with €20.7 million in net cash, significantly bolstered by its May 2017 IPO on the First North Finland market.See it on page 6
04
Operating costs rose due to an expansion in headcount to 149 employees and increased R&D investment in the proprietary Northlight engine and the P7 game project.See it on page 3
05
Remedy maintained active development partnerships with publishers Smilegate and 505 Games throughout the fiscal year.See it on page 5
06
Management declined to provide 2018 financial guidance, citing the inherent uncertainties and timing associated with future publishing agreements.See it on page 4
07
The company plans to continue its growth strategy in 2018, which includes the initiation of a third game project.See it on page 4

Summary

The 2017 financial statements for Remedy Entertainment reflect a transitional year defined by significant growth investments, an initial public offering (IPO), and the scaling of internal development capabilities. The primary thesis of the report centers on the company’s strategic shift toward a multi-project model, which necessitated increased spending on personnel and technology, ultimately impacting short-term profitability to support long-term growth.

Financial performance for the full year 2017 showed a modest revenue increase of 4.6% to €17.2 million, driven by development fees from two concurrent game projects and ongoing revenue from legacy titles. However, operating profit (EBIT) declined by 49.2% to €2.0 million, and earnings per share fell by 57.5% to €0.122. These results were primarily attributed to higher personnel expenses—which rose as the company expanded its headcount to 149 employees—and increased investment in the proprietary Northlight technology and the P7 game project. Despite the decline in operating profit, the company maintained a strong financial position, ending the year with €20.7 million in net cash, bolstered by the capital raised during its May 2017 listing on the First North Finland market.

The scope of the report covers the 2017 fiscal year for the Espoo-based developer, focusing on its global operations and partnerships with publishers such as Smilegate and 505 Games. The company’s methodology relies on audited financial statements prepared in accordance with Finnish Accounting Standards (FAS). Looking ahead, the company has signaled that it will continue to prioritize growth investments throughout 2018, including the launch of a third game project. Due to the inherent uncertainties and timing of publishing agreements, the company has declined to provide specific revenue or profit guidance for the upcoming year.