Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Remedy Entmt — Q1 2025 Earnings Presentation
25 slides from Remedy Entertainment Oy's earnings presentation, Apr 30, 2025
Slide 1: Business Review January–March 2025
Business Review January–March 2025 APRIL 30, 2025 © REMEDY ENTERTAINMENT 2024
Slide 2: Agenda
AGENDA © REMEDY ENTERTAINMENT 2024 1 Q1 2025 Business Review 2 Q1 Financial Results 3 Outlook 4 Questions & Answers Tero Virtala Santtu Kallionpää CEO CFO
Slide 3: Q1 2025 Business Review
Q1 2025 Business Review Tero Virtala, CEO
Slide 4: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS © REMEDY ENTERTAINMENT 2024 ‒ Revenue increased by 24.1% to EUR 13.4 (10.8) million. ‒ EBITDA increased to EUR 2.6 (-1.2) million. ‒ Operating profit was EUR 1.3 (-2.1) million, and the operating profit margin was 9.7% (-19.3%). ‒ Cash flow from operations was EUR -6.6 (3.3) milli
Slide 5: Self-publishing is now in full operation
SELF-PUBLISHING IS NOW IN FULL OPERATION © REMEDY ENTERTAINMENT 2024 SELF-PUBLISHING We have been involved in the publishing our games since 2016. Knowhow and team have been built step by step. We have a team of 25 experts to successfully manage 2025 publishing operations. The main focus is on succe
Slide 6: © REMEDY ENTERTAINMENT 2024
© REMEDY ENTERTAINMENT 2024
Slide 7: FBC: Firebreak
FBC: FIREBREAK © REMEDY ENTERTAINMENT 2025 • Three-player coop first-person shooter, in the world of Control • Launch June 17th • PC (Steam and Epic Games Store) • PlayStation 5 and Xbox Series X|S • PlayStation Plus (Extra and Premium) and • Xbox Game Pass Ultimate • FBC: Firebreak $39.99 / €39.99
Slide 8: Road to launch
ROAD TO LAUNCH © REMEDY ENTERTAINMENT 2024 Marketing campaign kick off in March Positive reception: Game seems interesting and positively stands out from competition. Next 2 months: Lot of activities, both development- and marketing-wise.
Slide 9: Alan Wake
ALAN WAKE 2 © REMEDY ENTERTAINMENT 2025 End of 2024, we exceeded 2 million units sold and game started to generate royalties In Q1 sales have continued steadily High quality games, like Alan Wake 2, sell for a long time in digital channels We continue to support, promote and sell the game actively w
Slide 10: Back catalog support: Control
BACK CATALOG SUPPORT: CONTROL © REMEDY ENTERTAINMENT 2025 Launched in 2019, over 4.5M units sold by the end of 2024. 600 000 units sold in 2024: Good quality games can sell for a long time. Control publishing rights now in our hands. Back catalog support team continues to support the game and reach
Slide 11: Games in development progress well
GAMES IN DEVELOPMENT PROGRESS WELL © REMEDY ENTERTAINMENT 2025 FBC: Control 2 Max Payne New project Firebreak 1&2 remake FULL FULL FULL PRODUCTION PRODUCTION PRODUCTION WITH
Slide 12: 2025: We have started an era of sustainable, profitable growth
2025 : WE HAVE STARTED AN ERA OF SUSTAINABLE, PROFITABLE GROWTH DOUBLE THE 2024 REVENUE BY 2027 WITH CONTINUED GROWTH BEYOND THIS MILESTONE EBITDA MARGIN OF 30% BY 2027 AND MAINTAIN THAT MINIMUM LEVEL THROUGHOUT THE STRATEGY PERIOD
Slide 13: Q1 Financial Results
Q1 Financial Results Santtu Kallionpää, CFO
Slide 14: Q1 2025: Solid revenue growth driven by royalties and development fees
Q1 2025: SOLID REVENUE GROWTH DRIVEN BY ROYALTIES FROM ALAN WAKE 2 AND THE DEVELOPMENT FEES FROM MAX PAYNE 1&2 REMAKE AND CONTROL 2 © REMEDY ENTERTAINMENT 2024 13.4 2.6 10.8 1.8 6.9 0.5 10.7 9.0 6.4 Q1 2023 Q1 2024 Q1 2025 Royalties and Game Sales (EURm) Development Fees (EURm)
Slide 15: Historical breakdown of revenue
HISTORICAL BREAKDOWN OF REVENUE © REMEDY ENTERTAINMENT 2025 +24% 17.9 0.8 13.4 11.7 2.6 10.3 10.8 10.3 1.5 8.9 1.8 0.9 1.0 7.8 2.7 17.0 1.1 10.2 10.7 9.0 9.4 7.9 6.7 7.6 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Royalties and Game Sales (EURm) Development Fees (EURm)
Slide 16: Q1 2025: Profitability improved driven by higher sales and lower cost level
Q1 2025: PROFITABILITY IMPROVED DRIVEN BY HIGHER SALES AND LOWER COST LEVEL © REMEDY ENTERTAINMENT 2025 EURm % EURm % 2 40 3 2.6 2.6 20 1.3 2 10 20 1 0 -5.6 -2.1 0 -4.9 -1.2 0 0 -10 -20 -1 -20 -40 -2 -2 -30 -60 -3 -40 -4 -80 -50 -5 -4 -100 -60 -6 -120 -70 -7 -6 -140 -8 -80 Q1 2023 Q1 2024 Q1 2025 Q1
Slide 17: Q1 2025: External development cost decreasing, capitalized development cost higher
Q1 2025: EXTERNAL DEVELOPMENT COST DECREASING, CAPITALIZED DEVELOPMENT COST ON HIGHER LEVEL © REMEDY ENTERTAINMENT 2025 3.0 2.0 2.2 2.0 1.3 1.4 1.7 1.1 -3.6 -4.7 -4.9 -4.6 -4.5 -5.0 -5.0 -5.7 -6.8 -6.5 -7.6 -7.6 -7.6 -8.0 -8.1 -8.1 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Ext
Slide 18: Q1 2025: Depreciations on a higher level
Q1 2025: DEPRECIATIONS ON A HIGHER LEVEL DUE TO THE CONTINUATION OF ALAN WAKE 2 DEPRECIATIONS © REMEDY ENTERTAINMENT 2025 -0.7 -0.9 -0.8 -0.8 -1.3 -1.3 -4.2 -8.9 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Depreciations and impairments related to game projects Other depreciations
Slide 19: Q1 2025: Operating cash flow affected by timing of revenue payments
Q1 2025: OPERATING CASH FLOW AFFECTED BY TIMING OF REVENUE PAYMENTS © REMEDY ENTERTAINMENT 2025 8.0 3.3 0.9 0.1 -1.2 -5.1 -7.0 -6.6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2024 2024 2024 2024 2025 Operating Cash Flow (EURm)
Slide 20: Q1 2025: Cash position decreased due to timing of payments
Q1 2025: CASH POSITION DECREASED DUE TO TIMING OF BOTH INFLOWING AND OUTFLOWING AGREEMENT-BASED PAYMENTS © REMEDY ENTERTAINMENT 2025 41.1 39.0 10.1 31.7 30.4 31.2 27.4 26.1 20.1 28.0 10.0 10.3 10.0 3.7 10.4 17.3 28.9 21.7 20.1 22.4 21.2 21.0 17.0 10.7 Q2 Q3 Q4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Slide 21: Historical revenue and profitability profile
HISTORICAL REVENUE AND PROFITABILITY PROFILE © REMEDY ENTERTAINMENT 2024 M€ FAS IFRS % 55 65 50.7 50 60 44.7 43.6 55 45 41.1 50 40 45 35 33.9 31.6 40 30 35 25 30 20.1 20 17.2 25 15.5 16.4 13.4 15 13.7 20 10.5 11.9 10 15 3.8 10 5 5 0 0 -5 -5 -10 -10 -15 -20 -85 2011 2012 2013 2014 2015 2016 2017 2018
Slide 22: Uncertainty in economic environment: tariffs and weakening USD
UNCERTAINTY IN ECONOMIC ENVIRONMENT: TARIFFS AND WEAKING USD © REMEDY ENTERTAINMENT 2024 Share of physical copies in our revenue is small – no direct impact from tariffs expected Impacts on economy and consumer spending could impact also game sales Weakening USD may impact part of Remedy revenue com
Slide 23: Outlook
Outlook Tero Virtala, CEO
Slide 24: Outlook for 2025 (unchanged)
OUTLOOK FOR 2025 (UNCHANGED) © REMEDY ENTERTAINMENT 2025 Remedy expects its revenue and operating profit (EBIT) to increase from the previous year and operating profit (EBIT) to be positive.
Slide 25: Contact
Contact: ir@remedygames.com investors.remedygames.com RemedyGames