Remedy Half-Year Report 2022: Presentation

Key insights

6 takeaways

01
Remedy is prioritizing a multi-project development model, currently managing five active titles including Alan Wake II and the Max Payne 1&2 remake.See it on page 6
02
Q2 2022 revenue remained flat at 9.4 million euros, while operating profit fell to -2.4 million euros, representing an operating margin of -25.6%.See it on page 13
03
The decline in profitability is driven by a strategic decision to increase personnel, expand resources, and invest in external development costs.See it on page 13
04
The company expanded its operational footprint in 2022 by opening a new development studio in Stockholm and transitioning share trading to the official Nasdaq Helsinki list.See it on page 9
05
Remedy is utilizing a phased development methodology supported by its proprietary Northlight technology to mitigate risk across its growing portfolio.See it on page 7
06
Financial guidance for the remainder of 2022 anticipates stable revenue compared to the previous year, with operating results expected to decline further due to ongoing production investments.See it on page 21

Summary

The Remedy Entertainment half-year report for 2022 outlines the company’s financial performance and strategic trajectory during a period of significant investment. The primary thesis centers on the company’s transition toward a multi-project development model, prioritizing long-term growth and the expansion of its intellectual property portfolio over short-term profitability. By maintaining projects in early development phases longer than in previous years, the company aims to mitigate risk and ensure higher quality standards for its upcoming titles.

Financial results for the second quarter of 2022 show revenue holding steady at 9.4 million euros, matching the performance of the same period in the previous year. However, operating profit declined to -2.4 million euros, resulting in an operating margin of -25.6%. This downturn is attributed primarily to increased external development costs and a strategic decision to scale up personnel and resources. Despite these immediate costs, the company successfully expanded its operations, including the establishment of a new development studio in Stockholm and the transition of its share trading to the official list of Nasdaq Helsinki.

The current project portfolio is robust, featuring five active games in various stages of development, including high-profile titles such as Alan Wake II and the Max Payne 1&2 remake. The company’s methodology emphasizes a disciplined, phased development approach—ranging from concept to production and live operations—supported by the proprietary Northlight technology. Looking ahead, the company maintains its long-term objectives of cultivating multiple successful game brands and balancing diverse commercial models, including self-publishing and partner-led distribution. The outlook for the remainder of 2022 anticipates revenue levels consistent with the previous year, though operating results are expected to decline significantly due to continued heavy investment in talent and production capabilities.