Remedy Entertainment Half-Year Review: 1 January - 30 June 2021

Key insights

6 takeaways

01
Remedy Entertainment reported H1 2021 revenue of €17.5 million, representing a 3.3% year-over-year increase.See it on page 4
02
The company strengthened its financial position with a €41.5 million directed share offering, contributing to a total cash reserve of €60.6 million as of June 30, 2021.See it on page 5
03
Market capitalization stood at approximately €617.7 million, with ownership concentrated among the top ten shareholders who control 41.7% of the firm.See it on page 15
04
Operational strategy centers on expanding the Control franchise through a new multiplayer spinoff co-publishing agreement with 505 Games.See it on page 2
05
Management maintains a positive outlook for the remainder of the fiscal year, projecting consistent growth in both revenue and operating profit despite pandemic-related challenges.See it on page 3
06
The company identifies key operational risks including potential commercial underperformance of new titles, technical development failures, and the difficulty of securing specialized human capital.See it on page 9

Summary

Remedy Entertainment demonstrated stable financial growth during the first half of 2021, achieving revenue of €17.5 million, a 3.3% increase compared to the previous year. This performance was supported by a robust cash position of €60.6 million, significantly bolstered by a successful €41.5 million directed share offering. As of June 30, 2021, the company maintained a market capitalization of approximately €617.7 million, with a total share count reaching 13,072,150. Ownership remains concentrated, with Markus Mäki serving as the largest individual shareholder at 25.2%, while the top ten shareholders collectively control 41.7% of the firm.

Operational strategy during this period focused on the expansion of the Control franchise through a new co-publishing agreement with 505 Games for a multiplayer spinoff, alongside the continued development of multiple AAA titles. Despite the ongoing challenges posed by the global pandemic, the company successfully maintained its development timelines and operational continuity. Management remains optimistic regarding the remainder of the fiscal year, projecting consistent growth in both revenue and operating profit.

The company’s long-term stability is managed through active share-based incentive programs designed to retain critical talent, alongside board-authorized mechanisms for future share issuances and repurchases. While the outlook is positive, the firm acknowledges inherent industry risks, specifically citing the potential for commercial underperformance of new titles, technical failures in the development process, and the ongoing necessity of securing specialized human capital to sustain its ambitious project pipeline.