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Remedy: Major strategic decision ahead

REMEDYResearch21.03.2024, 09.00
Atte RiikolaAnalyst
Discuss
Download report (PDF)

After a flurry of news over the past few months, the Q4 report offered little of substance. The outlook for improvement was also of limited informative value, as the decision to choose a publishing partner or to self-publish Condor and Control 2 will have a material impact on Remedy's near-term figures. This is an important long-term strategic decision that will shape the company's direction for the next decade. Given the potential of the Control franchise, we believe that the company will work towards self-publishing both or one of the projects, which will also require additional funding. Remedy's long-term potential is very attractive and at the current valuation we see the risk/reward ratio as a reason to stay long with the stock.

Remedy Entertainment is a game developer. Its operations are primarily focused on the development of action games, with a particular focus on 3D technology. Examples of games that the company has developed include several different versions of Alan Wake, Max Payne, and Control. Remedy also develops its own game engine and tooling technology that powers many of its games. The company was founded in 1995 and is headquartered in Espoo, Finland.

Read more on company page

Key Estimate Figures20.03.2024

202324e25e
Revenue33.950.459.5
growth-%-22.2 %48.6 %18.0 %
EBIT (adj.)-28.6-12.6-4.3
EBIT-% (adj.)-84.4 %-25.0 %-7.2 %
EPS (adj.)-1.68-0.72-0.25
Dividend0.000.000.00
Dividend %
P/E (adj.)neg.neg.neg.
EV/EBITDAneg.neg.210.6

Forum discussions

Here are the Steam pre-sales for Resonant vs Dawnwalker Addendum: And the same on the Playstation Store (US, PS5)
12 hours ago
22
Sep 13 Positions in Finland: 7 and 13. USA: 12 and 28! Situation on Sep 16: Finland positions: 5 and 7 USA: 6 and 16! These are preorders
12 hours ago
by Umpi
13
https://x.com/jessecox/status/2097660078740623842?s=46&t=mSCnXZqWFNPfvMpwlFbLXw The video in question has now also been released.
14 hours ago
9
Control Resonant dokkaria.
14 hours ago
by Henkka
8
The hyped Fire Emblem: Three Houses has sold five million copies. The considered weaker Engage indeed fewer. A popular and tough game series...
14 hours ago
by Relaaja
4
[quote="Akee, post:2800, topic:44948"]\nUnless Trails 2 blows up the PC+PS5 bank, its sales impact on Resonant is likely to be small\n[/quote...
16 hours ago
by Spwni
1
Paid ad, but nice extra fuel for the hype train.
17 hours ago
by Seppo Hovi #1 fan
5