Remedy Entertainment Financial Statements Release 2019

Key insights

7 takeaways

01
Remedy Entertainment’s annual revenue grew 57% to 31.6 million euros in 2019, up from 20.1 million euros in 2018.See it on page 1
02
Operating profit increased significantly to 6.5 million euros in 2019, compared to 0.5 million euros in the previous fiscal year.See it on page 5
03
Financial performance was driven by the commercial success of the game Control and ongoing development fees from the Crossfire franchise.See it on page 2
04
The company increased its headcount by 24% to 248 employees and proposed a dividend of 0.11 euros per share.See it on page 8
05
A new accounting policy to capitalize development expenses for proprietary brands was adopted, contributing to negative cash flow from operations despite a stable balance sheet.See it on page 4
06
Shareholders' equity reached 26.38 million euros by the end of 2019, with the ten largest shareholders holding a 46.3% stake in the firm.See it on page 13
07
Future growth strategy centers on the development of four major game projects and continued investment in the proprietary Northlight engine.See it on page 3

Summary

Remedy Entertainment achieved a significant financial milestone in 2019, successfully executing the initial phase of its long-term growth strategy. The company reported a substantial 57 percent increase in annual revenue, reaching 31.6 million euros, while operating profit rose to 6.5 million euros. This robust performance was primarily fueled by the critical and commercial success of the title Control, complemented by consistent development fees generated from the Crossfire franchise. These results represent a marked improvement over the 2018 fiscal year, where revenue stood at 20.1 million euros and profit was 0.5 million euros.

The organization’s operational expansion was characterized by a 24 percent increase in headcount, bringing the total workforce to 248 employees. To better reflect the value of its intellectual property, the company adopted a new accounting policy to capitalize development expenses for its proprietary game brands. While this transition contributed to a negative cash flow from operations, the firm maintained a stable balance sheet, with shareholders' equity growing to 26.38 million euros by year-end. Reflecting this financial health, the company proposed a dividend of 0.11 euros per share.

Looking toward the future, the company remains focused on scaling its operations through the continued development of four major game projects and the ongoing enhancement of its proprietary Northlight engine. Ownership remains concentrated among a core group of stakeholders, with the ten largest shareholders controlling 46.3 percent of the company. By prioritizing the expansion of its internal technology and brand portfolio, the firm is positioned to sustain its growth trajectory within the global interactive entertainment market.