Remedy Entertainment Half-Year Report: January-June 2022

Key insights

6 takeaways

01
Remedy Entertainment’s revenue grew 25.8% to EUR 22.1 million in the first half of 2022, though operating profit (EBIT) declined to EUR 0.4 million from EUR 1.3 million in the prior year.See it on page 2
02
The company reported a Q2 2022 operating loss of EUR -2.4 million, driven by heavy investment in active development projects including Alan Wake 2 and Codename Condor.See it on page 5
03
Remedy is executing a strategic shift toward a business model based on predictable long-term development fees supplemented by scalable royalty streams.See it on page 4
04
The company maintains a strong cash position of EUR 53.6 million, despite a conservative outlook for the remainder of 2022 due to lower-than-expected royalties and an extended proof-of-concept phase for Codename Vanguard.See it on page 4
05
Headcount increased to 319 employees as of June 30, 2022, to support a multi-project development roadmap that includes the Max Payne 1&2 remake.See it on page 3
06
Remedy transferred its share listing to the official list of Nasdaq Helsinki during the first half of 2022 to improve liquidity and brand visibility.See it on page 3

Summary

Remedy Entertainment’s half-year report for the period ending June 30, 2022, outlines a strategic transition period characterized by significant investment in long-term game development projects. The company’s primary objective remains the advancement of its five active game titles, including the Max Payne 1&2 remake and Alan Wake 2, while transitioning toward a model of predictable, long-term development fees supplemented by scalable royalty streams.

Financial performance during the first half of 2022 showed a 25.8% increase in revenue to EUR 22.1 million compared to the previous year. However, profitability faced downward pressure, with operating profit (EBIT) falling to EUR 0.4 million from EUR 1.3 million in the prior year. This decline was primarily driven by increased external development expenses and a shift in revenue composition toward projects where Remedy acts as a co-publisher or developer, which typically yield lower margins during the active development phase. In the second quarter specifically, operating profit dropped to EUR -2.4 million, reflecting the heavy investment phase of projects like Alan Wake 2 and Codename Condor.

The company’s scope of operations remains focused on high-quality, story-driven console and PC games, supported by its proprietary Northlight engine. During this period, Remedy successfully transferred its share listing to the official list of Nasdaq Helsinki to improve liquidity and brand visibility. While the company maintains a strong cash position of EUR 53.6 million, it has adopted a conservative outlook for the remainder of 2022, citing lower-than-expected royalties and the strategic decision to extend the proof-of-concept phase for Codename Vanguard. The company continues to prioritize talent acquisition, growing its headcount to 319 employees to support its multi-project roadmap through 2025.