Remedy Entertainment Plc Stock exchange release April 30, 2025, at 09:00 a.m. EEST
Remedy Entertainment Plc Business Review January-March 2025
Remedy's first self-published game to be released in June 2025
Solid revenue growth and operating profit turned positive
The Business Review is unaudited. Figures in parentheses refer to the comparison period in the previous year, unless otherwise stated.
Highlights from January-March 2025
- Revenue increased by 24.1% to EUR 13.4 (10.8) million.
- EBITDA increased to EUR 2.6 (-1.2) million.
- Operating profit (EBIT) was EUR 1.3 (-2.1) million, and the operating profit margin was 9.7% (-19.3%) of revenue.
- Cash flow from operations was EUR -6.6 (3.3) million.
- In March, Remedy announced its first self-published game FBC: Firebreak will launch in summer 2025. In April, the release date was confirmed to be June 17th.
- During the first quarter of 2025 Remedy made the final instalment in acquiring full rights to the Control franchise from 505 Games.
Key Figures
| MEUR, IFRS, Group, unaudited | 1-3/2025 | 1-3/2024 | 1-12/2024 |
| Revenue | 13.4 | 10.8 | 50.7 |
| Growth in revenue, % | 24.1% | 56.2% | 49.3% |
| EBITDA | 2.6 | -1.2 | 2.5 |
| EBITDA, % of revenue | 19.3% | -10.9% | 5.0% |
| Operating profit (EBIT) | 1.3 | -2.1 | -4.3 |
| Operating profit, % of revenue | 9.7% | -19.3% | -8.4% |
| Result for review period | 0.6 | -2.0 | -3.6 |
| Result for review period, % of revenue | 4.4% | -18.5% | -7.1% |
| Balance sheet total | 97.4 | 90.4 | 99.3 |
| Cash flow from operations | -6.6 | 3.3 | 11.0 |
| Net cash | 12.3 | 21.0 | 25.3 |
| Cash and liquid investments | 28.0 | 24.4 | 41.1 |
| Net gearing, % | -17.6% | -31.5% | -36.9% |
| Equity ratio, % | 73.9% | 74.9% | 70.9% |
| Capital expenditures | 3.8 | 19.6* | 26.6* |
| Average number of personnel during review period (FTE) | 363 | 345 | 351 |
| Headcount at the end of period | 373 | 360 | 367 |
| Earnings per share, € | 0.04 | -0.15 | -0.27 |
| Earnings per share, € (diluted) | 0.04 | -0,15 | -0,27 |
| Number of shares at the end of period | 13,585,151 | 13,516,401 | 13,574,151 |
*Contains 16.9 million invested in publishing rights of Control franchise
Comments by CEO Tero Virtala
In the first quarter of 2025, Remedy's revenue increased by 24.1% from the comparison period and was EUR 13.4 (10.8) million. Development fees and royalties increased. Development fees were driven by higher fees from Control 2 and Max Payne 1 & 2 remake while royalties increased with the sales of Alan Wake 2. After exceeding the 2 million units sold milestone at the end of Q4, Alan Wake 2 has continued to sell steadily and accrue royalties. In the first quarter the operating profit was EUR 1.3 million, improving by EUR 3.4 million from the comparison period. EBITDA was EUR 2.6 million, improving by EUR 3.8 million from the comparison period.
During Q1 2025, our game projects continued to develop at a good velocity.
In the first quarter, a new FBC: Firebreak gameplay trailer was released in the Future Games Show on March 20th to kick off the game's marketing campaign. The trailer was supported by previews of the game from members of the press as well as content creators.
Based on the previews, the early reception for the game has been positive. The game was characterized as interesting and positively distinctive in relation to other competitive titles on the market. We have carefully positioned FBC: Firebreak to differentiate it from other similar games, and to offer an interesting proposition to existing Control fans and to be relevant for a wider co-op audience.
Self-publishing
Marketing and publishing for FBC: Firebreak is being driven by Remedy's internal publishing team. With the publishing rights to Control fully returned to Remedy, our publishing team has expanded to include team members focused on supporting our existing portfolio - a group we call 'back catalog support'. Their work includes, for example, releasing limited updates for older titles and adapting them for new platforms, such as the Control Ultimate Edition for Mac, developed in collaboration with Apple. The importance of long-tail sales has kept on increasing for digital games. For that, we have a dedicated team to ensure our games' longevity in the digital storefronts and continue to also actively support and promote Alan Wake 2 with our partner Epic Games.
Games in development Q1 2025
FBC: Firebreak is in full production. The development team has been primarily focused on balancing the metagame. Quality assurance support is being ramped up as the day 1 experience is being polished.
Control 2 moved to full production in February and is tracking well towards its next milestones. Team is working on expanding the content from Vertical and Horizontal Slices to the whole game.
Max Payne 1 & 2 remake project has made great progress and remains in full production. In Q1, the team has advanced steadily toward major development stages in several critical areas, working alongside the game's publisher, Rockstar Games.
As highlighted during our Capital Markets Day in November 2024, Remedy embarked on a new strategic chapter in Q1 2025. We are delivering on our core strategic pillars, with a particular emphasis on self-publishing all Remedy-owned titles. FBC: Firebreak will lead the way as the first in a series of regular game launches, signaling our commitment to a steady cadence of releases. This upcoming title is both exciting and distinctive. I'm eager to see it in the hands of players.
On the financial front, I'm delighted to report that Remedy returned to profitability in Q1 2025. This result aligns with our stated outlook for the year and supports our longer-term financial objectives, reinforcing the strength of our strategic direction.
Outlook 2025 (unchanged)
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, 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.
Events after the end of the reporting period
The Annual General Meeting was held on April 10, 2025, at the company's office at Luomanportti 3, 02200 Espoo, Finland. The Annual General Meeting adopted the Financial Statements for 2024, discharged the members of the Board of Directors and the CEO from liability, adopted the company's Remuneration Report and approved all proposals made to the Annual General Meeting in the form included in the notice to the Annual General Meeting. The Annual General Meeting resolved that no dividends shall be distributed for the financial period ended on December 31, 2024. Markus Mäki, Henri Österlund, Kaisa Salakka, Sonja Ängeslevä and Kai Tavakka were elected to the Board of Directors. At its organizing meeting held after the Annual General Meeting, the Board of Directors elected Markus Mäki to continue as the Chairman of the Board of Directors.
Further information about the resolutions made by the Annual General Meeting can be found in Remedy's Annual General Meeting resolutions release dated April 10, 2025, available on https://investors.remedygames.com/annual-general-meeting-2025/.
Between January 1 and March 31, 2025, a total of 2,000 new shares of Remedy were subscribed for with the company's stock options 2019. The shares subscribed for under the stock options were registered in the Trade Register on April 25, 2025, after which the total number of shares is 13,587,151.
Webcast
Remedy will host a webcast in English on its Q1 2025 financial results for investors, analysts and media on April 30, 2025, at 12:00 p.m. (EEST). 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.videosync.fi/2025-q1-review
After registering, you will receive a confirmation email containing information about joining the webcast.
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
Santtu Kallionpää, CFO
Phone: +358 40 5768060
Email: santtu.kallionpaa@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 many of its games. Remedy's shares are listed on Nasdaq Helsinki's main list.
www.remedygames.com
