Challenging year results in two established franchises after the successful Alan Wake 2 launch After the review period, Remedy acquired full rights for the Control franchise
Figures in parentheses refer to the comparison period in the previous year, unless otherwise stated.
Highlights from October-December 2023
** Revenue decreased by 24.4% to
** EBITDA decreased to
** Operating profit (EBIT) was
** Cash flow from operations was
** In September, the Board of Directors decided on a new option plan 2023.
**
**
** In November, Remedy made changes to its core leadership team. Markus Mäki assumed the role of Chief Product Officer and
** Remedy recognized an impairment charge of
Highlights from January-December 2023
** Revenue decreased by 22.2% to
** EBITDA was
** Operating profit (EBIT) was
** Cash flow from operations was
** In September, The Board of Directors decided on a new option plan 2023.
** In November, Remedy made changes to its core leadership team. Markus Mäki assumed the role of Chief Product Officer and
** Remedy recognized an impairment charge of
** The Board of Directors proposes that no dividend will be paid for the year 2023.
** After the review period, in
** After the review period, in
** After the review period, in
Key Figures
MEUR, | 10-12/2023 | 10-12/2022 | 1-12/2023 | 1-12/2022 |
Revenue | 10.3 | 13.6 | 33.9 | 43.6 |
Growth in revenue, % | -24.4% | -31.2% | -22.2% | -2.5% |
EBITDA | -3.9 | 2.8 | -17.0 | 1.9 |
Operating profit (EBIT) | -12.8 | 2.1 | -28.6 | -0.6 |
Operating profit, % of revenue | -123.9% | 15.6% | -84.4% | -1.3% |
Result for review period | -9.9 | 1.5 | -22.7 | -1.7 |
Result for review period, % of revenue | -96.5% | 10.8% | -66.8% | -4.0% |
Balance sheet total | 79.0 | 99.6 | 79.0 | 99.6 |
Cash flow from operations | 0.1 | -3.8 | -16.0 | 11.1 |
Net cash | 23.8 | 49.9 | 23.8 | 49.9 |
Cash and cash equivalents | 20.1 | 49.0 | 20.1 | 49.0 |
Net gearing, % | -35.1% | -56.4% | -35.1% | -56.4% |
Equity ratio, % | 85.5% | 88.8% | 85.5% | 88.8% |
Capital expenditures | 1.5 | 2.5 | 10.0 | 10.6 |
Average number of personnel during review period (FTE) | 337 | 323 | 334 | 307 |
Headcount at the end of period | 352 | 334 | 352 | 334 |
Earnings per share, E | -0.74 | 0.11 | -1.68 | -0.13 |
Earnings per share, E (diluted) | -0.73 | 0.11 | -1.66 | -0.13 |
Number of shares at the end of period | 13,490,151 | 13,448,600 | 13,490,151 | 13,448,600 |
Comments by CEO Tero Virtala
The last quarter of 2023 was a special and memorable one for Remedy.
We at Remedy are grateful for
The sales of
In
Our full year 2023 revenue and profitability were impacted by significantly increased investments in our own game projects, and the impairment charge related to codename Vanguard. Out of the five games we had in development during the year, we co-financed four that are based on Remedy-owned brands, whereas Max Payne1&2 remake is fully funded by the IP owner and publishing partner
In November we announced a reboot to Codename Vanguard, renamed Codename Kestrel. The requirements for a successful new free-to-play game have clearly increased during the past years. Despite the promising progress during the first half of the year, we decided with
Control 2 continued in the proof-of-concept stage. In the fourth quarter, the team worked particularly on world building and combat. Codename Condor continued in the production readiness stage and the team focused on combat and game mechanics. Both games have proven fun and engaging game play.
We expect Condor, Control 2 and
I want to thank all Remedians for their hard work and dedication throughout the year. 2023 was a challenging yet remarkable year for Remedy. Having acquired the full rights to Control, Condor and Control 2, we can now make the right product and business decisions focusing on long-term franchise growth for both
Outlook 2024
Remedy expects its revenue to increase from the previous year and operating profit (EBIT) to improve.
The revenue growth rate and EBIT improvement are meaningfully dependent on the choice between self-publishing and/or choosing a new publishing partner for the games in the Control franchise (Codename Condor and Control 2).
We will specify the Outlook for 2024 when the decision for the business model and the potential agreements for Control 2 and Condor have been made.
Long-term business prospects
We have two established own franchises, Control and
Dividend proposal
On
The Board of Directors proposes to the Annual General Meeting that no dividend be paid based on the balance sheet to be adopted for the financial year 2023.
Events after the end of the reporting period
On
On
On
Webcast and conference call
Remedy will host a webcast and conference call in English on its full year 2023 financial results for investors, analysts and media on
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/j/89665290254?pwd=TjVNZmp6U0xtY3dXNnpLZFFPeHNaQT09
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.
Webinar ID: 896 6529 0254
Passcode: 487991
A recording of the webcast will be available afterwards on Remedy's Investor website: https://investors.remedygames.com/financials-and-reports/webcasts-and-presentations/.
More information
Veli-Pekka Puolakanaho, Corporate Development Director
Phone: +358 50 430 0936
Email: veli-pekka.puolakanaho@remedygames.com
Remedy in brief
https://news.cision.com/remedy-entertainment-oyj/r/remedy-entertainment-plc--financial-statements-release-january-december-2023--challenging-year-resul,c3948561
https://mb.cision.com/Public/18862/3948561/92617f3296ac0778.pdf
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