Alan Wake

Remedy Entertainment Plc: Business Review January-September 2024

Remedy Entertainment’s business review for the first nine months of 2024 highlights a strategic transition toward self-publishing and the strengthening of its internal intellectual property portfolio.

• Remedy Entertainment reported a 128.6% revenue increase to EUR 17.9 million and an operating profit of EUR 2.4 million for Q3 2024, reversing a EUR 5.5 million loss from the same period in 2023.
• The company is transitioning toward a self-publishing model, supported by a partnership with Annapurna, which will fund 50% of the Control 2 development budget in exchange for film and television adaptation rights.
• Remedy secured full rights to the Control franchise in February 2024 and finalized a EUR 15 million convertible loan agreement with Tencent to increase financial independence.

Remedy Half-Year Financial Report: January-June 2024

Remedy Entertainment’s half-year financial report for the period ending June 30, 2024, outlines a period of revenue growth and improved profitability driven primarily by development fees from the Max Payne 1 and 2 remake project.

• Remedy Entertainment reported Q2 2024 revenue of EUR 10.3 million, a 16.2% increase compared to the same period in 2023.
• Operating losses narrowed to EUR -3.2 million in Q2 2024, compared to a EUR -4.8 million loss in Q2 2023, with operating cash flow turning positive at EUR 0.9 million.
• Revenue growth is primarily driven by development fees associated with the Max Payne 1 and 2 remake project.

Remedy Entertainment Half Year Financial Report: January–June 2024

Remedy Entertainment experienced a period of strategic transition and financial growth during the first half of 2024, characterized by a 33.7 percent revenue increase to EUR 21.1 million.

• Remedy Entertainment reported a 33.7% revenue increase to EUR 21.1 million for the first half of 2024, driven by the Alan Wake 2 expansion and ongoing Max Payne remake development.
• The company recorded a net loss of EUR 4.2 million for the period, reflecting the high operational costs associated with scaling its portfolio of high-budget titles.
• Remedy’s balance sheet shows a cash position of EUR 22.4 million against EUR 25.0 million in liabilities, necessitating the liquidation of most equity fund investments to maintain liquidity.

Remedy Entertainment Q1 2024 Business Review

The Remedy Entertainment Q1 2024 Business Review outlines the company’s financial performance and strategic shift toward greater control over its intellectual property portfolio.

• Remedy Entertainment acquired full rights to the Control franchise from 505 Games for approximately EUR 17 million to gain greater control over future publishing models.
• Q1 2024 revenue grew 56.2% year-over-year to EUR 10.8 million, primarily driven by development fees from the Max Payne 1 and 2 remake project.
• Operating losses narrowed to EUR 2.1 million in Q1 2024, a significant improvement from the EUR 5.6 million loss reported in Q1 2023.

Remedy Entertainment Financial Statement and Board of Directors' Report 2023

Remedy Entertainment experienced a difficult fiscal year in 2023, characterized by a 22.2% decline in revenue to EUR 33.9 million and an operating loss of EUR 28.6 million.

• Remedy Entertainment reported a 22.2% revenue decline to EUR 33.9 million and an operating loss of EUR 28.6 million for the 2023 fiscal year.
• The company’s cash reserves dropped from EUR 49.0 million to approximately EUR 20.0 million, leading the Board to propose no dividend distribution for 2023.
• A EUR 7.2 million impairment charge was recorded following the reboot of the project formerly known as Vanguard, now rebranded as Codename Kestrel.

Remedy Entertainment Annual Report 2023

Remedy Entertainment is currently executing a strategic transition from a traditional development fee-based model toward a high-margin, scalable consumer business centered on the ownership of multiple intellectual properties.

• Remedy Entertainment is shifting its business model from fee-based development to a high-margin, scalable model focused on long-term ownership of its intellectual properties.
• The company reported a 22.2% revenue decline to €33.9 million and an operating loss of €28.6 million in 2023, driven by heavy investment in its project pipeline and a €7.2 million write-off from the Vanguard project restructuring.
• Alan Wake 2 successfully launched in 2023, achieving critical acclaim and surpassing one million units sold.

Remedy Financial Statement: January-December 2023

Remedy Entertainment experienced a challenging fiscal year in 2023, characterized by a 22.2 percent decline in revenue and a notable decrease in operating profit.

• Remedy Entertainment’s 2023 revenue declined by 22.2 percent, driven by high development costs for Alan Wake 2 and a 7.2 million euro impairment charge from the pivot of project Vanguard to Kestrel.
• The company has secured full ownership of the Control and Alan Wake franchises to transition toward self-publishing and more favorable partnership models.
• Alan Wake 2 achieved critical success and reached 1.3 million units sold by early 2024.

Remedy Entertainment Financial Statements Release 2023

Remedy Entertainment experienced a difficult fiscal year in 2023, characterized by a 22.2% decline in annual revenue to €33.9 million and a significant operating loss of €28.6 million.

• Remedy Entertainment reported a 22.2% decline in annual revenue to €33.9 million and an operating loss of €28.6 million for the 2023 fiscal year.
• Cash and cash equivalents dropped from €49.0 million to €20.1 million, driven by a €16.0 million negative operational cash flow and a €7.2 million impairment charge from the cancelled Vanguard project.
• The company acquired full rights to the Control franchise in early 2024 to increase creative and commercial control over its core intellectual property.

Remedy Entertainment Plc Business Review: January–September 2023

The business review for Remedy Entertainment covering January through September 2023 outlines the company’s financial performance and strategic progress as it transitioned into a major product launch phase.

• Remedy Entertainment reported a 21.1% revenue decline to EUR 23.6 million and an operating loss of EUR -15.9 million for the first nine months of 2023, driven by increased internal investment in game development.
• The company maintains a strong financial foundation with an equity ratio of 86.4%, despite the deliberate strategy to prioritize long-term growth over short-term profitability.
• The launch of Alan Wake 2 served as the primary operational milestone for the period, with management now shifting talent to accelerate development on other projects.

Remedy Q2 and H1 2023 Financial Results Presentation

The Remedy Entertainment financial results for the second quarter and first half of 2023 reflect a strategic investment phase characterized by increased spending on a multi-project development portfolio.

• Remedy reported a Q2 2023 revenue of 8.9 million EUR, a 5.3% decrease, and an operating loss of 4.8 million EUR, representing an operating margin of -53.8%.
• The company is prioritizing long-term growth over immediate profitability, leading management to reaffirm a 2023 outlook of year-over-year revenue decline and negative operating results.
• Remedy is currently managing a multi-project portfolio that includes Alan Wake 2, Control 2, Condor, Vanguard, and the Max Payne 1 & 2 remake.

Remedy Entertainment Half-Year Financial Report: January–June 2023

Remedy Entertainment, a Finland-based developer publicly traded on the Nasdaq Helsinki, experienced a challenging financial period during the first half of 2023.

Remedy Entertainment Q1 2023 Financial Results

Remedy Entertainment’s Q1 2023 financial results reflect a strategic investment phase characterized by a planned decline in revenue and profitability as the company scales its multi-project development pipeline.

• Remedy Entertainment reported a 45.4% revenue decline to 6.9 million EUR in Q1 2023, down from 12.7 million EUR in Q1 2022, due to the timing of project milestones.
• The company recorded an operating loss of 5.6 million EUR for the quarter, resulting in an operating profit margin of -81.0% compared to a positive 21.8% margin in the same period last year.
• Remedy is currently managing five concurrent projects, including the full production of Alan Wake II and the early-stage development of Control 2, Condor, and the Max Payne 1&2 remake.