Remedy Entertainment Plc Stock exchange release February 12, 2025, at 09:00 a.m. EET
Remedy Entertainment Plc's Financial Statements Release 2024
Alan Wake 2 sales exceeded 2 million units and the game started to accrue royalties, updated company strategy and growth objectives announced
Higher revenue and improved profitability versus the comparison period
Figures in parentheses refer to the comparison period in the previous year, unless otherwise stated.
Highlights from October-December 2024
- Revenue increased by 13.1% to EUR 11.7 (10.3) million.
- EBITDA increased to EUR -0.6 (-3.9) million, -4.9% (-37.4%) of revenue.
- Operating profit (EBIT) was EUR -1.4 (-12.8) million, and the operating profit margin was -11.9% (-123.9%) of revenue.
- Cash flow from operations was EUR -1.2 (0.1) million.
- In October, the Board of Directors decided on a new option plan 2024.
- In October, Santtu Kallionpää started as Chief Financial Officer.
- In October, Remedy announced The Lake House expansion to Alan Wake 2 and the physical edition became available.
- In October, Remedy announced FBC: Firebreak (previously known as codename Condor), a three-player cooperative multiplayer first-person shooter set in the mysterious world of Control that will be self-published in 2025.
- By the end of 2024, Alan Wake 2 sales exceeded two million units. The game had also recouped the development fees and marketing investments, meaning Remedy started to accrue royalty income from the game sales.
Highlights from January-December 2024
- Revenue increased by 49.3% to EUR 50.7 (33.9) million.
- EBITDA was EUR 2.5 (-17.0) million, 5.0% (-50.0%) of revenue
- Operating profit (EBIT) was EUR -4.3 (-28.6) million, and the operating profit margin was -8.4% (-84.4%) of revenue.
- Cash flow from operations was EUR 12.3 (-16.0) million.
- In February, Remedy acquired full rights to the Control franchise from 505 Games. Through the transaction, all rights to Control, codename Condor (FBC: Firebreak), Control 2, and all future Control products reverted to Remedy.
- In August, Remedy and Annapurna announced a strategic partnership agreement where Annapurna will finance 50% of the development budget for the upcoming Control 2 video game and gain the rights to expand the award-winning Control and Alan Wake franchises into film and television.
- In September, Remedy announced it entered into a EUR 15 million unsecured convertible loan agreement with Tencent. An Extraordinary General Meeting of Remedy was held on October 24, 2024, and it approved the material terms of the loan.
- In October, the Board of Directors decided on a new option plan 2024.
- In October, Remedy announced FBC: Firebreak (previously known as codename Condor), a three-player cooperative multiplayer first-person shooter set in the mysterious world of Control that will be self-published in 2025.
- The Board of Directors proposes that no dividend will be paid for the year 2024.
Key Figures
| MEUR, IFRS, Group, unaudited | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| Revenue | 11.7 | 10.3 | 50.7 | 33.9 |
| Growth in revenue, % | 13.1% | -24.4% | 49.3% | -22.2% |
| EBITDA | -0.6 | -3.9 | 2.5 | -17.0 |
| EBITDA, % of revenue | -4.9% | -37.4% | 5.0% | -50.0% |
| Operating profit (EBIT) | -1.4 | -12.8 | -4.3 | -28.6 |
| Operating profit, % of revenue | -11.9% | -123.9% | -8.4% | -84.4% |
| Result for review period | -1.3 | -9.9 | -3.6 | -22.7 |
| Result for review period, % of revenue | -10.8% | -96.5% | -7.1% | -66.8% |
| Balance sheet total | 99.3 | 79.0 | 99.3 | 79.0 |
| Cash flow from operations | -1.2 | 0.1 | 12.3 | -16.0 |
| Net cash | 25.3 | 23.8 | 25.3 | 23.8 |
| Cash and liquid investments | 41.1 | 27.4 | 41.1 | 27.4 |
| Net gearing, % | -36.9% | -35.1% | -36.9% | -35.1% |
| Equity ratio, % | 70.9% | 85.5% | 70.9% | 85.5% |
| Capital expenditures | 1.7 | 1.5 | 26.6 | 10.0 |
| Average number of personnel during review period (FTE) | 352 | 337 | 351 | 334 |
| Headcount at the end of period | 367 | 352 | 367 | 352 |
| Earnings per share, € | -0.09 | -0.74 | -0.27 | -1.68 |
| Earnings per share, € (diluted) | -0.09 | -0.74 | -0.27 | -1.68 |
| Number of shares at the end of period | 13,574,151 | 13,490,151 | 13,574,151 | 13,490,151 |
Comments by CEO Tero Virtala
In the fourth quarter of 2024, revenue increased 13.1% from a year ago to EUR 11.7 million. Development fees increased, driven by higher development fees from Max Payne 1&2 Remake and Control 2. Royalties decreased from the comparison period and consisted mainly of game sales of Control, older Alan Wake titles and Alan Wake 2. Alan Wake 2 sales exceeded two million units during the quarter. By the end of 2024, Alan Wake 2 had recouped its development fees and marketing investments, meaning that Remedy started to accrue royalties towards the end of the quarter. In the fourth quarter, the operating profit was EUR -1.4 million, improving by EUR 11.4 million from the comparison period, in which we had a EUR 7.2 million impairment loss from codename Vanguard.
Games portfolio in Q4 2024
Our games in development progressed as planned during the quarter. October saw particularly high activity around Alan Wake 2. Remedy and Epic Games launched The Lake House expansion to Alan Wake 2 to a positive reception on October 22. This coincided with the release of the physical retail edition of the Alan Wake 2 Deluxe Edition. In November, with the launch of the PlayStation 5 Pro, Remedy released a Pro-specific update for Alan Wake 2 and multiple updates to improve the quality of the title across all platforms. At the end of the fourth quarter, Alan Wake 2 had recouped and reached the milestone of two million units sold.
The self-publishing team also continued to grow, bringing in new members dedicated to FBC: Firebreak brand and marketing.
FBC: Firebreak continues in full production. In December, the development team successfully conducted a closed technical test with external players. They tested the game's matchmaking and back-end services, collecting data and experience helping in shaping the final product. FBC: Firebreak will be self-published by Remedy in 2025.
Control 2 has been finalizing the production readiness stage and entered full production after the end of the fourth quarter in February 2025. The project has verified the velocity of asset creation, established production pipelines, and is ready for scaling up for production.
Max Payne 1&2 Remake is making steady progress in full production. The development progress is heading towards key development objectives together with the game's publisher Rockstar Games.
New agreements in place
2024 was full of concrete actions that will enable future growth. I want to thank all Remedians for their dedication throughout this eventful year. Since acquiring the Control rights in February, we evaluated the options for future business models, aiming to strengthen our position in the value chain. Throughout the year we have been building readiness towards self-publishing and more regular game releases. We were very happy to announce the strategic partnership with Annapurna in August, as well as the convertible loan from Tencent in September. With Annapurna, we can further grow our audiences and expand our franchises beyond games, whereas the financing from Tencent supports our self-publishing strategy.
We are in a great place to begin our strategy period 2025-2030 and have set targets we are confident in reaching as announced in our Capital Markets Day in November. By 2027 we aim to double our 2024 revenue with an EBITDA margin of 30%. 2025 will mark the start of a new growth era for us.
Outlook 2025
Remedy expects its revenue and operating profit (EBIT) to increase from the previous year and operating profit (EBIT) to be positive.
Long-term business prospects
We have two established own franchises, Control and Alan Wake, which are linked through the Remedy Connected Universe. Remedy will self-publish upcoming games, in which Remedy owns the IP. Growing and expanding the two franchises will be a key part of our future. In addition, we work with a partner franchise Max Payne that was originally created by Remedy.
By 2030, we aim to be a highly regarded creative studio with sustainable, significant commercial success. We have set ourselves the following financial targets: 1) Double the 2024 revenue by 2027 with continued growth beyond this milestone and 2) EBITDA margin of 30% by 2027 and maintain that minimum level throughout the strategy period.
A look at Remedy's games portfolio, July-December 2024
It has been an event-filled six months for Remedy, with releases and several announcements providing the building blocks for us to self-publish the highly anticipated FBC: Firebreak and Control 2. All games in development at Remedy made steady progress during H2 2024.
In August, Remedy announced a strategic partnership with Annapurna, which will fund 50% of Control 2's budget. As part of the collaboration, Annapurna will also focus on expanding Control and Alan Wake into film, television and other audiovisual mediums. Remedy will retain the full IP rights for Control and Alan Wake. In September we also announced a convertible loan agreement with Tencent, which will support us further in developing our games.
During the second half of 2024, Remedy has also taken over the various Control-related publishing operations and community management handled by 505 Games. In 2025, Remedy is gearing up for its 30th anniversary and its biggest year as a developer and publisher yet.
Alan Wake 2
In the second half of 2024 Remedy released the second expansion of Alan Wake 2, The Lake House, alongside the release of the physical retail Deluxe Edition of the game. The physical Collector's Edition was shipped to players in December by Limited Run Games. In November, with the launch of the PlayStation 5 Pro, Remedy released a Pro-specific update for Alan Wake 2 and multiple updates to improve the quality of the title across all platforms. These actions together support Alan Wake 2's long-term sales.
Remedy has started to accrue royalties from the game sales towards the end of Q4 2024.
FBC: Firebreak
Stage gate status: in full production?
In October, Remedy announced its first self-published title, FBC: Firebreak, in the Xbox Partner Preview digital event. A gameplay teaser trailer showcased Remedy's brand of cooperative multiplayer, giving fans a taste of what's to come. The positioning and messaging of the title were carefully considered to ensure as good reception as possible in a competed genre.
In December, the development team carried out a closed technical test with external players successfully. They tested match-making and other technical components of the upcoming title giving the team data and insight to help development and shape the final product.
Control 2
Stage gate status: finalizing the production readiness stage, entered full production after the end of the fourth quarter in February 2025
The project has verified the velocity of asset creation, established production pipelines, and is ready for scaling up for full production.
Max Payne 1&2 remake
Stage gate status: in full production
Max Payne 1&2 Remake is making steady progress in full production. The development progress is heading towards key development objectives together with the game's publisher Rockstar Games.
Financial disclosures in 2025
February 12, 2025 Financial Statements Report 2024
April 30, 2025 Business Review for January-March 2025
August 12, 2025 Half-year Financial Report for January-June 2025
October 29, 2025 Business Review for January-September 2025
Remedy's Annual Report, Financial Statements and Board of Directors' Report for 2024 will be published on week 11 on company's investor website at https://investors.remedygames.com/.
Webcast and conference call
Remedy will host a webcast and conference call in English on its full year 2024 financial results for investors, analysts and media on February 12, 2025, at 12:00 p.m. (EET). Remedy's financial results will be presented by CEO Tero Virtala and CFO Santtu Kallionpää.
The Business review will be available after publication on Remedy's Investor website: https://investors.remedygames.com/financials-and-reports/financial-reports/.
Webcast details
Register in advance for the webcast:
https://remedy.zoom.us/s/81723693442?pwd=JCO1LfUgxph4UGHA30fqVPC2FfrLzE.1
After registering, you will receive a confirmation email containing information about joining the webcast.
Conference call details
Dial in by calling your local phone number a few minutes before the briefing begins. International numbers are available at: https://remedy.zoom.us/u/kbZXDFBZgc.
Finland: +358 9 7252 2471
Sweden: +46 850 539 728
United Kingdom: +44 330 088 5830
United States: +1 646 558 8656
Webinar ID: 817 2369 3442
Passcode: 487991
A recording of the webcast will be available afterwards on Remedy's Investor website: https://investors.remedygames.com/financials-and-reports/financial-reports/.
More information
Liisa Eloranta, Investor Relations Manager
Phone: +358 50 4334 992
Email: liisa.eloranta@remedygames.com
Remedy in brief
Remedy Entertainment Plc is a pioneering, globally renowned video game company founded in 1995 and headquartered in Finland with an office in Stockholm, Sweden. Known for its story-driven and visually stunning action games, Remedy has created multiple successful, critically acclaimed franchises such as Control, Alan Wake and Max Payne. Remedy also develops its own Northlight game engine and tools technology that powers its games. Remedy's shares are listed on Nasdaq Helsinki's main list.
www.remedygames.com
