Revenue: EUR 17.9 million, over two times more than the previous year in the same period.
Operating Profit: EUR 2.4 million, compared to minus EUR 4.2 million last year.
Cash Flow from Operations: Positive EUR 6.6 million.
Development Fees: EUR 17 million, 2.5 times the amount in the comparison period.
Operating Profit Margin: 13.4%.
Year-to-Date Revenue: EUR 39 million, a 65% increase from the previous year.
Year-to-Date Operating Profit: EUR 2.9 million negative, an improvement from the previous year.
Total Cash Level: EUR 31.2 million, an increase of EUR 5 million from the previous quarter.
Convertible Loan from Tencent: EUR 50 million, with an 8% interest capitalized annually.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Remedy Entertainment PLC (STU:8P8) reported a significant increase in revenue for the third quarter, reaching EUR 17.9 million, more than double the previous year’s figure.
The company achieved a positive operating profit of EUR 2.4 million, a substantial improvement from a loss of EUR 4.2 million in the same period last year.
A strategic partnership with Annapurna and a convertible loan agreement with Tencent were key developments, providing financial support and opportunities for growth.
The launch of Alan Wake 2’s second expansion and the announcement of a new game, FBC: Firebreak, indicate strong progress in their game development pipeline.
Remedy Entertainment PLC (STU:8P8) is moving towards self-publishing, which is expected to provide greater long-term value and control over game commercialization.
The reported revenue included a onetime payment from Annapurna, which will not recur in future quarters, potentially impacting future revenue figures.
Alan Wake 2 has not yet fully recouped its development and marketing expenses, delaying royalty generation.
The decision to self-publish may result in lower short-term development fees, impacting immediate financial performance.
The economic climate has been challenging for securing large-scale financing, affecting the company’s investment strategies.
Despite improvements, the EBIT remains negative for the year, indicating ongoing financial challenges.
Q: Related to the outlook, have you assumed any royalties from Alan Wake 2 in your 2024 outlook? A: We haven’t specified it exactly and we cannot open it. – Santtu Kallionpaa, CFO
Q: Can you say anything about how meaningful those B2B deals for FPC Fire Break are in terms of revenue and which one is more important in those deals? Is it access to a large player base right away in the game launch or the risk-free revenue? A: We cannot specify exactly the amounts. Our long-term aim is to build much bigger successes than we have done so far. We are aiming to find a balanced model that supports us both in the short-term, bringing us good revenue, and building a strong basis for long-term success. Ensuring a large player base from the start is valuable, especially for a multiplayer game. – Santtu Kallionpaa, CFO
