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Research

Remedy: Patiently waiting for decisions on Control franchise

By Atte RiikolaAnalyst
Remedy Entertainment
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Remedy's Q1 results were well above our cautious expectations, and the company's game projects are currently progressing as planned. Negotiations to choose a publishing partner or self-publish Condor and Control 2 are ongoing, and decisions on these will determine the direction of the company 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 we view the forecast risks associated with the ongoing negotiations as positive. Thus, we will stick with the stock to see the outcome of the negotiations, even though in the short term and on current estimates the valuation is already starting to look tight.

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

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Key Estimate Figures29.04.2024

202324e25e
Revenue33.948.659.0
growth-%-22.2 %43.3 %21.3 %
EBIT (adj.)-28.6-8.8-3.1
EBIT-% (adj.)-84.4 %-18.0 %-5.2 %
EPS (adj.)-1.68-0.52-0.18
Dividend0.000.000.00
Dividend %
P/E (adj.)neg.neg.neg.
EV/EBITDAneg.neg.62.0
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