Remedy lowers its revenue and operating result outlook for 2022
Remedy Entertainment Plc | Inside information August 1, 2022, at 7:15 p.m. EEST
Remedy lowers its revenue and operating result outlook for 2022
Remedy Entertainment Plc lowers the outlook concerning the development of its revenue and operating result in 2022. According to the updated outlook, the company expects its revenue to remain at the previous year’s level and its operating result to decline significantly compared to the year 2021. In 2021, Remedy’s revenue totaled EUR 44.7 million and operating profit EUR 11.4 million.
Previously, Remedy expected its revenue to grow and operating profit to be on a lower level than in 2021 (May 13, 2022, Business Review January 1 – March 31, 2022).
The lowering of the outlook resulted from lower-than-expected game royalties in 2022, as well as the company’s decision to take extra time to develop its game project codenamed Vanguard to ensure that it can be completed according to the high-quality standards characteristic of Remedy games. Due to these changes, some of the agreed development fees will be postponed to subsequent financial years, which will have a direct impact on Remedy’s revenue and operating result in 2022. These changes will not affect the total amount of development fees generated by the game codenamed Vanguard, only their timing.
“Remedy is currently working on five world-class game titles, and our capability to develop these games is stronger than ever. With our transition to a multi-project operating model, we have learned that it is better to keep our game projects in the early development phase for a longer period of time than in the past. The benefit of this is that the development team size and thus the operating costs stay lower, and it gives the teams the time they require to design, prepare and test key elements of the game before the project moves onto a phase of development where a larger team is required. By doing this, we are supporting both high quality as well as cost-efficient game development.
We have decided to keep the game codenamed Vanguard longer in the current proof-of-concept phase and postpone the significant expansion of the development team until the year 2023. This will postpone income from 2022 to 2023, which means that we expect our 2022 revenue to remain at the previous year’s level and our operating result to decline significantly compared to the year 2021,” says Tero Virtala, CEO of Remedy Entertainment.
Remedy will publish its half-year financial report on August 12, 2022. Due to the silent period, the company will not give any further comments regarding its financial performance before publishing the half-year financial report. Remedy will host a webcast and conference call in English on its half-year financial report for investors, analysts and media on Friday August 12, 2022, at 2:00 p.m. (EEST). The participants will have the opportunity to ask questions from the company’s management during the webcast.
Further information:
Tero Virtala, CEO
Tel. +358 9 435 5040
Email: tero.virtala@remedygames.com
Distribution:
Nasdaq Helsinki
Key media
www.remedygames.com
Remedy in brief
Remedy Entertainment Plc is a globally successful video game company known for story-driven and visually stunning console and PC games such as Control, Alan Wake and Max Payne. Remedy also develops its own Northlight game engine and game development tools. Founded in 1995 and based in Finland, the company employs over 320 game industry professionals from 32 different countries. Remedy’s share is listed on the Nasdaq Helsinki’s official list.