Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Remedy Entmt — Q2 2024 Earnings Presentation
24 slides from Remedy Entertainment Oy's earnings presentation, Aug 9, 2024
Slide 1: Half-Year Financial Report January–June 2024
Half-Year Financial Report January–June 2024 AUGUST 9, 2024 © REMEDY ENTERTAINMENT 2024
Slide 2: Agenda
AGENDA © REMEDY ENTERTAINMENT 2024 1 Q2 2024 Review 2 Q2 and H1 Financial Results 3 Outlook 4 Questions & Answers Tero Virtala CEO
Slide 3: Q2 2024 Review
Q2 2024 Review Tero Virtala, CEO
Slide 4: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS © REMEDY ENTERTAINMENT 2024 ‒ Revenue increased by 16.2% to EUR 10.3 (8.9) million ‒ EBITDA increased to EUR -2.4 (-4.1) million ‒ Operating profit was EUR –3.2 (-4.8) million, and the operating profit margin was -31.0% (-53.8%) ‒ Cash flow from operations was EUR 0.9 (-7.0) milli
Slide 5: Alan Wake Expansion and Physical Edition
ALAN WAKE 2 EXPANSION AND PHYSICAL EDITION © REMEDY ENTERTAINMENT 2024
Slide 6: Current Project and Game Portfolio
CURRENT PROJECT AND GAME PORTFOLIO © REMEDY ENTERTAINMENT 2024 Alan Wake Alan Wake 2 Control Condor* Control 2 Max Payne * Remastered 1&2 remake LAUNCHED LAUNCHED LAUNCHED FULL PRODUCTION FULL PRODUCTION READINESS PRODUCTION WITH WITH New development stages reached during Q2 2024 * project codename
Slide 7: Game projects on track and releases at regular interval
GAME PROJECTS ON TRACK AND GAME RELEASES AT A REGULAR INTERVAL ARE THE BASIS FOR PROFITABLE GROWTH © REMEDY ENTERTAINMENT 2024 CONDOR* CONTROL CONTROL 2 ALAN WAKE MAX PAYNE Pre-production* Production Early sales phase Later sales phases IN DEVELOPMENT LIVE and SELLING • Higher investments • Lower in
Slide 8: Evaluating business models for future Control games
WE HAVE BEEN EVALUATING THE BUSINESS MODELS TO SUCCEED WITH FUTURE CONTROL © REMEDY ENTERTAINMENT 2024 GAMES AND TO GROW THE FRANCHISE PUBLISHING CO- SELF- BY PARTNER PUBLISHING PUBLISHING
Slide 9: Moving up the value chain: balancing risk and reward
MULTI-PROJECT MOVING UP FUTURE IN THEWITH MORE VALUE GAMES: CHAIN TO INCREASE BALANCING RISK AND REWARD OUR SHARE OF THE GAME SALES REVENUES © REMEDY ENTERTAINMENT 2024 SELF- PUBLISHING CO- PUBLISHING We are free to decide the model for future Reward OWN IP WITH Control games potential A PUBLISHING
Slide 10: Remedy's Core Management Team
REMEDY’S CORE MANAGEMENT TEAM © REMEDY ENTERTAINMENT 2024 TERO VIRTALA MARKUS MÄKI SAMI JÄRVI MIKAEL KASURINEN Chief Executive Officer Chief Product Officer Creative Director Creative Director SANTTU KALLIONPÄÄ* JOHANNES PALOHEIMO MIKA VEHKALA Chief Financial Officer Chief Commercial Officer Chief T
Slide 11: Guiding principles for evaluating and developing our business
WE EVALUATE AND DEVELOP OUR BUSINESS WITH THESE GUIDING PRINCIPLES © REMEDY ENTERTAINMENT 2024 1 Increase focus and synergies 2 Make great games earning back at least double the money invested 3 Grow franchises 4 Strengthen position to maximize the franchise potential
Slide 12: Q2 and H1 Financial Results
Q2 and H1 Financial Results Paula Feodoroff, Finance Manager
Slide 13: Q2 2024: Revenue growth driven by development fees
Q2 2024: REVENUE GROWTH DRIVEN BY THE DEVELOPMENT FEES RELATED TO MAX PAYNE 1&2 REMAKE © REMEDY ENTERTAINMENT 2024 10.3 9.4 0.9 8.9 2.0 1.0 9.4 7.4 7.9 Q2 2022 Q2 2023 Q2 2024 Royalties (EURm) Development Fees (EURm)
Slide 14: Historical Breakdown of Revenue
HISTORICAL BREAKDOWN OF REVENUE © REMEDY ENTERTAINMENT 2024 13.6 0.9 +16% 10.3 10.8 10.3 8.9 1.8 0.9 7.9 7.8 2.7 6.9 1.0 0.4 1.1 12.7 0.5 9.0 9.4 7.5 7.9 7.6 6.4 6.7 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Royalties (EURm) Development Fees (EURm)
Slide 15: Q2 2024: Improvement in profitability
Q2 2024: IMPROVEMENT IN PROFITABILITY IMPACTED BY HIGHER PARTNER IP PROJECT REVENUES © REMEDY ENTERTAINMENT 2024 -2.4 -25.6% -31.0% -3.2 -4.8 -53.8% Q2 2022 Q2 2023 Q2 2024 Q2 2022 Q2 2023 Q2 2024 Operating Profit (EURm) Operating Profit Margin (%)
Slide 16: H1 2024: Revenue growth driven by development fees
H1 2024: REVENUE GROWTH DRIVEN BY THE DEVELOPMENT FEES RELATED TO MAX PAYNE 1&2 REMAKE © REMEDY ENTERTAINMENT 2024 22.1 21.1 3.0 2.7 15.8 1.4 19.1 18.4 14.4 H1 2022 H1 2023 H1 2024 Royalties (EURm) Development Fees (EURm)
Slide 17: H1 2024: Improvement in profitability
H1 2024: IMPROVEMENT IN PROFITABILITY IMPACTED BY HIGHER PARTNER IP PROJECT REVENUES © REMEDY ENTERTAINMENT 2024 0.4 1.6% -25.0% -5.3 -10.4 -65.7% H1 2022 H1 2023 H1 2024 H1 2022 H1 2023 H1 2024 Operating Profit (EURm) Operating Profit Margin (%)
Slide 18: Q2 2024: Own investments in Control franchise projects
Q2 2024: OWN INVESTMENTS INTO CONTROL FRANCHISE GAME PROJECTS SHOW AS A HIGHER LEVEL OF CAPITALIZED DEVELOPMENT EXPENSES © REMEDY ENTERTAINMENT 2024 2.1 2.0 2.0 2.2 1.0 1.3 1.4 1.1 -3.8 -4.5 -4.3 -4.7 -4.6 -4.9 -5.0 -5.7 -6.5 -6.9 -6.8 -7.5 -7.6 -7.6 -7.6 -8.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Slide 19: Q2 2024: Operating cash flow remains positive
Q2 2024: OPERATING CASH FLOW REMAINS POSITIVE IN THE SECOND QUARTER OF 2024 © REMEDY ENTERTAINMENT 2024 4.7 3.3 0.9 0.1 -3.8 -3.9 -5.1 -7.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 2023 2023 2023 2023 2024 2024 Operating Cash Flow (EURm)
Slide 20: Q2 2024: Development investments affect cash position
Q2 2024: DEVELOPMENT PHASE INVESTMENTS TO GAME PROJECTS AFFECT CASH POSITION DEVELOPMENT © REMEDY ENTERTAINMENT 2024 63.3 6.8 55.9 6.8 49.7 9.9 39.0 10.1 31.7 30.4 27.4 26.1 56.5 10.0 49.0 10.3 3.7 39.8 10.4 28.9 21.7 20.1 17.0 22.4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2024 Q2 2024 2022 2022 2023 2023 2023 2023 Cas
Slide 21: Historical Revenue and Profitability Profile
HISTORICAL REVENUE AND PROFITABILITY PROFILE © REMEDY ENTERTAINMENT 2024 FAS IFRS 50 40 44.7 43.6 35 45 41.1 30 40 24.1 31.6 25.5 20.6 25 35 18.9 33.9 17.6 20 30 11.7 15 9.8 25 6.1 20.1 10 4.7 21.1 2.4 1.7 3.0 5 20 17.2 15.5 16.4 -1.3 0 15 13.7 11.9 -5 10.5 10 -10 4.7 3.8 5 -15 0 -20 -25.0 -5 -25 -3
Slide 22: Outlook
Outlook Tero Virtala, CEO
Slide 23: Outlook for 2024 (Unchanged)
OUTLOOK FOR 2024 (UNCHANGED) © REMEDY ENTERTAINMENT 2024 Remedy expects its revenue to increase from the previous year and operating profit to improve. The revenue growth rate and EBIT improvement are meaningfully dependent on the choice between self-publishing and/or choosing a new publishing partn
Slide 24: Contact
Contact: ir@remedygames.com investors.remedygames.com RemedyGames