In This Article:
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Remedy Entertainment PLC (FRA:8P8) reported a 13% increase in revenue for Q4 2024, reaching 11.7 million.
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Alan Wake 2 sales exceeded 2 million units, recouping its development and marketing costs, and began accruing royalty income.
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The company acquired full rights to the Control franchise, enabling future self-publishing opportunities.
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A strategic partnership with Annapurna Pictures was formed, financing 50% of Control 2's development and expanding the franchise into film and television.
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Remedy Entertainment PLC (FRA:8P8) successfully transitioned to self-publishing, providing higher financial upside and control over commercialization.
Negative Points
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Operating profit for Q4 2024 was negative 1.4 million, despite improvements from the previous year.
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Royalties decreased by 1.2 million compared to the previous year, impacting overall revenue.
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The gaming industry faced a challenging economic climate in early 2024, making it difficult to secure favorable financing for self-publishing.
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The company is still ramping up its publishing operations, which may lead to increased operating expenses in 2025.
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There is potential for high variation in working capital levels due to timing differences in development fees and royalties.
Q & A Highlights
Q: In 2024, Remedy had 2, and now in early 2025, a total of 3 games in full production. Does Remedy see increased project development or other risks? A: Unidentified_2: While having three games in full production is unprecedented for Remedy, our development capabilities have improved significantly. Our teams are more stable, and our technology and tools are better. We are confident in our ability to manage these projects effectively, as they share synergies and do not compete for the same resources.
Q: What are the expected sales of Alan Wake 2 this year? A: Unidentified_2: We haven't set specific sales targets, but based on the continued success of Control, we expect Alan Wake 2 to sell well over time, given its quality.
Q: Were there any milestone payments for Max Payne and Control 2 in Q4, and should we expect similar development fee levels in coming quarters? A: Unidentified_3: Development fees in Q4 were primarily from Max Payne and Control 2. While there might be variations in payments due to contract terms, we expect to continue receiving milestone payments from these projects.