Remedy Entertainment Oyj: Inside Information, profit warning and preliminary results 2023: Remedy makes 7.2 million write-off based on contract amendment and reschedules publication of 2023 financials

Remedy Entertainment Plc Inside Information February 6, 2024 at 2:00 p.m. EET

Inside Information, profit warning and preliminary results 2023: Remedy makes 7.2 million write-off based on contract amendment and reschedules publication of 2023 financials

Remedy has signed a contract amendment with Tencent for codename Kestrel, resulting in the Kestrel project starting fresh. Remedy recognizes an impairment charge of EUR 7.2 million for Q4 and fiscal year 2023 results, comprising the total capitalized development costs for codename Vanguard. This does not impact Remedy's cash position. As a result of the write-off, Remedy's result for Q4 and fiscal year 2023 will be lower than expected.

Based on unaudited preliminary information, Remedy Entertainment Plc's revenue in 2023 was EUR 33.9 (43.6) million, and EBITDA decreased to EUR -17.0 (1.9) million. EBIT, including a non-cash impairment charge of the above EUR 7.2 million, was EUR -28.7 (-0.6) million. The cash position at the end of 2023 including financial instruments was EUR 30.4 (55.9) million.

"We made meaningful investments in 2023 and created a stronger basis for profitable long-term growth. After the restart, Kestrel is better aligned with our core strengths and creative vision of the Remedy Connected Universe", said Tero Virtala, CEO of Remedy Entertainment.

In addition, Remedy rescheduled the publication of its Financial Statements Bulletin 2023 to Wednesday, March 20, 2024. The rescheduling relates to ongoing contract negotiations regarding a publishing agreement. The previously scheduled publication date for the Financial Statements Bulletin was Friday, February 9, 2024.

"The contract negotiations regarding a publishing agreement are another determined step towards our long-term objectives in accordance with our strategy", said Tero Virtala, CEO of Remedy Entertainment.

REMEDY ENTERTAINMENT PLC

More information

Tero Virtala, CEO
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Veli-Pekka Puolakanaho, Head of Corporate Development and IR
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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 many of its games. www.remedygames.com