Remedy Financial Statements Release 2018

Key insights

6 takeaways

01
Remedy reported 2018 revenue of 20.1 million euros, a 17.3% increase over 2017, while operating profit (EBIT) fell 69.6% to 0.6 million euros.See it on page 1
02
The decline in operating profit was driven by a 34% increase in headcount and high operational costs associated with the full production phase of the game Control.See it on page 2
03
The company transitioned to a multi-project development model, prioritizing infrastructure and personnel investments that were expensed rather than capitalized.See it on page 4
04
Despite lower profitability, Remedy maintained a strong cash position of 23.0 million euros, enabling a proposed dividend distribution of 0.10 euros per share.See it on page 9
05
Key operational milestones included the announcement of Control, the launch of the Vanguard development team, and the return of the Alan Wake IP to digital storefronts.See it on page 1
06
Remedy projects growth in both revenue and operating profit for 2019, supported by the release of Control and the advancement of its multi-project strategy.See it on page 1

Summary

Remedy Entertainment’s 2018 financial statements detail a period of significant organizational growth and strategic investment. The company’s primary objective throughout the year was to transition into a multi-project development model, scaling its internal infrastructure and headcount to support multiple concurrent game titles. This shift was characterized by substantial investments in personnel, technology, and business support functions, which were recognized as expenses rather than capitalized, directly impacting short-term profitability.

Financially, the company reported revenue of 20.1 million euros for the full year, representing a 17.3% increase compared to 2017. Operating profit (EBIT) reached 0.6 million euros, a 69.6% decline from the previous year, primarily driven by a 34% increase in personnel and higher operational costs associated with the full production phase of the game Control. Despite these investments, the company maintained a strong cash position of 23.0 million euros, supporting the Board of Directors' proposal for a dividend distribution of 0.10 euros per share.

The scope of operations covers the company’s headquarters in Espoo, Finland, and its international partnerships with publishers such as 505 Games and Smilegate. Key operational milestones included the announcement of Control, the expansion of the Northlight game engine, the launch of the Vanguard development team, and the return of the Alan Wake intellectual property to digital storefronts. The company’s methodology for this period focused on organic growth and the strengthening of its value chain position. Looking ahead, the company expects revenue and operating profit to increase in 2019, driven by the release of Control and the continued advancement of its multi-project development strategy.