Remedy Entertainment Shows 7% Increase in Revenue

Remedy Entertainment has officially released it’s financials for Q3, the three month period that officially ended on September 30th, and it shows an increase in their revenue but also shows declines in their operating profit.

Remedy highlighted that development fees accounted for 95% of revenues, while royalties made up the 5% remaining. This is despite the development costs of projects such as Alan Wake 2 and the remakes for Max Payne 1 and Max Pane 2, which they report were “key positive contributors”.

The company went on the state that Alan Wake Remastered and Xbox exclusive Crossfire did not generate royalties. Alan Wake 2 is still on track to arrive in 2023. [source investors.remedygames.com]

“In the third quarter of 2022, revenue grew by 7% to EUR 7.9 million. Development fees made up 95% and royalties 5% of the revenue. Key positive contributors were the development fees from Alan Wake 2 and Max Payne 1&2 Remake.

At the same time, development fees from Codename Condor and Alan Wake Remastered and game royalties from Control decreased from the comparison period. Alan Wake Remastered and Crossfire did not generate royalties.”

Per the report:

HIGHLIGHTS FROM JULY–SEPTEMBER 2022

• Revenue grew by 6.8% to EUR 7.9 (7.4) million.
• EBITDA decreased to EUR -2.4 (0.4) million, mainly due to increased external development costs.
• Operating profit (EBIT) was EUR -3.0 (-0.2) million, and operating profit margin was -38.4% (-2.9%) of revenue.
• Cash flow from operations was EUR 4.7 (4.8) million.
• In August, Remedy lowered its revenue and operating result outlook for 2022.
• In September, Remedy’s Board of Directors decided on a new option plan.

HIGHLIGHTS FROM JANUARY–September 2022

• Revenue grew by 20.2% to EUR 30.0 (24.9) million.
• EBITDA was EUR -0.9 (3.6) million.
• Operating profit (EBIT) was EUR -2.7 (1.1) million, and operating profit margin was -9.0% (4.3%) of revenue.
• Cash flow from operations was EUR 14.2 (8.2) million.