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Research

Remedy: Write-downs and contract negotiations

By Atte RiikolaAnalyst
Remedy Entertainment
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The clean slate launch of Kestrel and a higher-than-expected cost structure in preliminary Q4 figures resulted in significant negative changes to our earnings forecasts. We speculate that the postponement of the financial statements due to publishing contract negotiations is related to Digital Bros' financial challenges, which may also allow Remedy to realize greater royalty potential by self-publishing Condor/Control 2 and making additional investments. The potential of future games is still heavily priced into the stock and the risk/reward is not sufficient.

Remedy Entertainment

21.6EUR06.02.2024, 18.00
21EURTarget price
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Changed from:Reduce
Recommendation updated:06.02.2024

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 Figures06.02.2024

202223e24e
Revenue43.633.967.2
growth-%-2.5 %-22.2 %98.3 %
EBIT (adj.)-0.6-28.79.9
EBIT-% (adj.)-1.3 %-84.6 %14.8 %
EPS (adj.)-0.13-1.710.59
Dividend0.100.100.10
Dividend %0.5 %0.6 %0.6 %
P/E (adj.)neg.neg.27.1
EV/EBITDA126.5neg.12.4
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