Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Remedy Entmt — Q4 2024 Earnings Presentation
34 slides from Remedy Entertainment Oy's earnings presentation, Feb 12, 2025
Slide 1: Financial Statements January–December 2024
Financial Statements January–December 2024 FEBRUARY 12, 2025 © REMEDY ENTERTAINMENT 2025
Slide 2: Agenda
AGENDA © REMEDY ENTERTAINMENT 2025 1 Q4 2024 Review 2 Q4 and FY Financial Results 3 Outlook 4 Questions & Answers Tero Virtala Santtu Kallionpää CEO CFO
Slide 3: Q4 and Full Year 2024 Review
Q4 and Full Year 2024 Review Tero Virtala, CEO
Slide 4: Q4 2024 Highlights
Q4 2024 HIGHLIGHTS © REMEDY ENTERTAINMENT 2025 ‒ Revenue increased by 13.1% to EUR 11.7 (10.3) million ‒ EBITDA increased to EUR -0.6 (-3.9) million, 4.9% (-37.4%) of revenue ‒ Operating profit was EUR -1.4 (-12.8) million, and the operating profit margin was -11.9% (-123.9%) ‒ Cash flow from operat
Slide 5: Alan Wake Sales and Recoup
ALAN WAKE 2 SALES AND RECOUP © REMEDY ENTERTAINMENT 2024 Sales exceeded 2M units by the end of 2024 Recouped the development fees and marketing investments Royalties accrued towards the end of the quarter
Slide 6: Full Year 2024 Highlights
FULL YEAR 2024 HIGHLIGHTS © REMEDY ENTERTAINMENT 2025 ‒ Revenue increased by 49.3% to 50.7 million (33.9) ‒ EBITDA was 2.5 million (-17.0), 5.0% (-50.0%) of revenue ‒ Operating profit was -4.3 million (-28.6), and the operating profit margin was -8.4% (-84.4%) ‒ Cash flow from operations was 12.3 mi
Slide 7: Significant Developments in 2024
SIGNIFICANT DEVELOPMENTS IN 2024 © REMEDY ENTERTAINMENT 2025 ꟷ Control rights acquired ꟷ Greatly improved ways of working ꟷ Annapurna Pictures partnership ꟷ Major technology and tools progress ꟷ Convertible loan from Tencent ꟷ Strengthened game teams Transition to self-publishing Clearly better deve
Slide 8: Developments in 2024 Allowed Us to Transition to Self-Publishing
DEVELOPMENTS IN 2024 ALLOWED US TO TRANSITION TO SELF-PUBLISHING © REMEDY ENTERTAINMENT 2025 PUBLISHING CO- SELF- BY PARTNER PUBLISHING PUBLISHING
Slide 9: We Secured a Strategic Partnership and Additional Financing
WE SECURED A STRATEGIC PARNERSHIP AND ADDITIONAL FINANCING © REMEDY ENTERTAINMENT 2025
Slide 10: Transition to Self-Publishing Enables Financial Upside
TRANSITION TO SELF-PUBLISHING ENABLES FINANCIAL UPSIDE, BUT ALSO REQUIRES MORE FROM US © REMEDY ENTERTAINMENT 2025 INVESTMENT needs from Remedy SHARE OF SALES to Remedy Self-publishing – – +++ CONTROL 2 Co-publishing – ++ Own IP with publishing partner –+ + Partner IP + ?
Slide 11: Self-Publishing Capabilities Have Been Built Over Time
SELF-PUBLISHING CAPABILITIES HAVE BEEN BUILT OVER TIME © REMEDY ENTERTAINMENT 2025 QUANTUM BREAK CONTROL ALAN WAKE 2 FBC: FIREBREAK PR & media Community Influencers Demoing Events Analytics Marketing strategy Branding Trailers and marketing assets Sales promotions Monetization Paid media advertising
Slide 12: Game and Project Portfolio
© REMEDY ENTERTAINMENT 2025 Game and project portfolio
Slide 13: Games Launched and Selling
GAMES LAUNCHED AND SELLING © REMEDY ENTERTAINMENT 2025 Alan Wake Alan Wake 2 Control Remastered LAUNCHED LAUNCHED LAUNCHED WITH
Slide 14: Control
CONTROL LAUNCHED © REMEDY ENTERTAINMENT 2025 Launched in 2019, over 4.5M units sold 600 000 units sold in 2024 We continue to support the game
Slide 15: Alan Wake
ALAN WAKE 2 LAUNCHED © REMEDY ENTERTAINMENT 2025 In October, we announced The Lake House expansion and released a physical edition Sold well during the 2024 holiday period 2M units sold and the game has recouped the development fees and marketing investments High-quality games have good long-term sa
Slide 16: Current Project Portfolio
CURRENT PROJECT PORTFOLIO © REMEDY ENTERTAINMENT 2025 FBC: Control 2 Max Payne New project Firebreak 1&2 remake FULL FULL FULL PRODUCTION PRODUCTION PRODUCTION WITH
Slide 17: FBC: Firebreak in Full Production
FBC: FIREBREAK IN FULL PRODUCTION © REMEDY ENTERTAINMENT 2025 In October, the announcement of FBC: Firebreak was very well received In December, we carried out a closed technical test with external players The game will be self-published in 2025
Slide 18: We Now Have the Ability To
WE NOW HAVE THE ABILITY TO © REMEDY ENTERTAINMENT 2025 ‒ Create and launch excellent games more regularly ‒ Expand our franchises to new games and mediums ‒ Grow our audiences
Slide 19: 2025 Starts an Era of Sustainable, Profitable Growth
2025 STARTS 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 20: Q4 and Full Year Financial Results
Q4 and Full Year Financial Results Santtu Kallionpää, CFO
Slide 21: Q4 2024: Revenue Growth Driven by Development Fees
Q4 2024: REVENUE GROWTH DRIVEN BY THE DEVELOPMENT FEES RELATED TO MAX PAYNE 1&2 REMAKE AND CONTROL 2 © REMEDY ENTERTAINMENT 2025 13.6 1.1 11.7 10.3 1.5 2.7 12.6 10.2 7.6 Q4 2022 Q4 2023 Q4 2024 Royalties (EURm) Development Fees (EURm)
Slide 22: Historical Breakdown of Revenue
HISTORICAL BREAKDOWN OF REVENUE © REMEDY ENTERTAINMENT 2025 +13% 17.9 0.8 11.7 10.3 10.8 10.3 1.5 8.9 1.8 0.9 6.9 1.0 7.8 2.7 17.0 0.5 1.1 9.0 9.4 10.2 7.9 6.7 7.6 6.4 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Royalties (EURm) Development Fees (EURm)
Slide 23: Q4 2024: Profitability Improved
Q4 2024: PROFITABILITY IMPROVED DRIVEN BY HIGHER SALES AND LOWER COST LEVEL © REMEDY ENTERTAINMENT 2025 EURm % EURm % 4 40 3 30 2.1 2 20 2 20 -1.4 1 10 0 0 -3.9 -0.6 0 0 -2 -20 2.8 -1 -10 -4 -40 -2 -20 -6 -60 -3 -30 -4 -40 -8 -80 -5 -50 -10 -100 -6 -60 -12 -120 -7 -70 -14 -12.8 -140 -8 -80 Q4 2022 Q
Slide 24: Full Year 2024: Revenue Has Increased
FULL YEAR 2024: REVENUE HAS INCREASED FROM PREVIOUS YEARS DRIVEN BY DEVELOPMENT FEES FROM MAX PAYNE 1 & 2 REMAKE AND CONTROL 2 © REMEDY ENTERTAINMENT 2025 50.7 5.1 43.6 4.3 33.9 5.2 45.6 39.3 28.7 FY 2022 FY 2023 FY 2024 Royalties (EURm) Development Fees (EURm)
Slide 25: Full Year 2024 Operating Profit Improving Clearly
FULL YEAR 2024 OPERATING PROFIT IMPROVING CLEARLY FROM THE COMPARISON PERIOD, BUT STILL NEGATIVE © REMEDY ENTERTAINMENT 2025 EURm % EURm % -0.6 -28.6 -4.3 2.5 0 0 3 1.9 10 -17.0 0 0 -5 -15 -3 -10 -6 -20 -10 -30 -9 -30 -12 -40 -15 -45 -15 -50 -18 -60 -20 -60 -21 -70 -24 -80 -25 -75 -27 -90 -30 -90 -3
Slide 26: Q4 2024: External Development Cost Decreasing
Q4 2024: EXTERNAL DEVELOPMENT COST DECREASING, CAPITALIZED DEVELOPMENT COST ON HIGHER LEVEL © REMEDY ENTERTAINMENT 2025 2.0 2.2 2.0 1.3 1.4 1.7 1.0 1.1 -3.8 -4.7 -4.9 -4.6 -4.5 -5.0 -5.0 -5.7 -6.8 -6.5 -7.5 -7.6 -7.6 -7.6 -8.1 -8.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Ext
Slide 27: Q4 2024: Alan Wake Depreciations Were Started
Q4 2024: ALAN WAKE 2 DEPRECIATIONS WERE STARTED © REMEDY ENTERTAINMENT 2025 -0.7 -0.7 -0.9 -0.8 -0.8 -1.3 -4.2 -8.9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Depreciations and impairments related to game projects Other depreciations
Slide 28: Q4 2024: Operating Cash Flow Affected by Timing
Q4 2024: OPERATING CASH FLOW AFFECTED BY TIMING OF REVENUE PAYMENTS © REMEDY ENTERTAINMENT 2025 6.6 6.0 0.9 0.1 -1.2 -3.9 -5.1 -7.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2023 2023 2023 2024 2024 2024 2024 Operating Cash Flow (EURm)
Slide 29: Q4 2024: Cash Position Increased Following Convertible Loan
Q4 2024: CASH POSITION INCREASED FOLLOWING THE CONVERTIBLE LOAN © REMEDY ENTERTAINMENT 2025 49.7 9.9 41.1 39.0 10.1 31.7 30.4 31.2 27.4 26.1 20.1 10.0 10.3 10.0 10.4 3.7 39.8 28.9 21.7 20.1 22.4 21.2 21.0 17.0 Q1 Q2 Q3 Q4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2023 2023 2023 Cash and Cash Equivalents
Slide 30: Historical Revenue and Profitability Profile
HISTORICAL REVENUE AND PROFITABILITY PROFILE © REMEDY ENTERTAINMENT 2025 M€ FAS IFRS % 55 65 50.2 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 15 13.7 20 10.5 11.9 15 10 4.7 10 5 3.8 5 0 0 -5 -5 -10 -10 -15 -20 -85 2010 2011 2012 2013 2014 2015 2016 2017
Slide 31: Dividend Proposal
DIVIDEND PROPOSAL © REMEDY ENTERTAINMENT 2025 The Board of Directors proposes that no dividend will be paid for the year 2024.
Slide 32: Outlook
Outlook Tero Virtala, CEO
Slide 33: Outlook for 2025
OUTLOOK FOR 2025 © 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 34: Contact
Contact: ir@remedygames.com investors.remedygames.com RemedyGames