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News Remedy drives growth with moves towards publishing and new games

kingfey

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Remedy Entertainment Plc | Company announcement 09:00 am (EEST) 13 August 2021
HALF-YEAR REVIEW 1 January – 30 June 2021 (unaudited)

Strong financial position, new co-publishing and development agreement signed to expand Control.​

HIGHLIGHTS FROM APRIL–JUNE 2021​

  • Revenue 9 417 (9 125) thousand euros, change +3.2 %.
  • Operating profit (EBIT) 2 304 (2 086) thousand euros, 24.5 % (22.9 %) of revenue.
  • Remedy signed a co-publishing and development agreement with 505 Games for a multiplayer spin-off game of the award-winning Control. Collaboration terms for a future, bigger-budget Control-game were also agreed.

HIGHLIGHTS FROM JANUARY–JUNE 2021​

  • Revenue 17 533 (16 970) thousand euros, change +3.3 %.
  • Operating profit (EBIT) 3 155 (3 161) thousand euros, 18.0 % (18.6 %) of revenue.
  • Remedy signed a co-publishing and development agreement with 505 Games for a multiplayer spin-off game of the award-winning Control. Collaboration terms for a future, bigger-budget Control-game were also agreed.
  • Remedy raised 41 500 thousand euros with a directed offering of new shares to a limited number of domestic and international institutional investors in an accelerated book-building process.
  • Control Ultimate Edition was released on PlayStation 5 and Xbox Series X|S on 2 February.
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REMEDY DRIVES GROWTH WITH MOVES TOWARDS PUBLISHING AND NEW GAMES
Remedy Entertainment Plc | Company announcement 09:00 am (EEST) 13 August 2021
HALF-YEAR REVIEW 1 January – 30 June 2021 (unaudited)

Remedy drives growth with moves towards publishing and new games​

Strong financial position, new co-publishing and development agreement signed to expand Control.​

HIGHLIGHTS FROM APRIL–JUNE 2021​

  • Revenue 9 417 (9 125) thousand euros, change +3.2 %.
  • Operating profit (EBIT) 2 304 (2 086) thousand euros, 24.5 % (22.9 %) of revenue.
  • Remedy signed a co-publishing and development agreement with 505 Games for a multiplayer spin-off game of the award-winning Control. Collaboration terms for a future, bigger-budget Control-game were also agreed.

HIGHLIGHTS FROM JANUARY–JUNE 2021​

  • Revenue 17 533 (16 970) thousand euros, change +3.3 %.
  • Operating profit (EBIT) 3 155 (3 161) thousand euros, 18.0 % (18.6 %) of revenue.
  • Remedy signed a co-publishing and development agreement with 505 Games for a multiplayer spin-off game of the award-winning Control. Collaboration terms for a future, bigger-budget Control-game were also agreed.
  • Remedy raised 41 500 thousand euros with a directed offering of new shares to a limited number of domestic and international institutional investors in an accelerated book-building process.
  • Control Ultimate Edition was released on PlayStation 5 and Xbox Series X|S on 2 February.

KEY FIGURES​


FAS, unaudited EUR thousand4–6/20214–6/20201–6/20211–6/20201-12/2020
Revenue9 417 9 125 17 533 16 970 41 086
Growth in revenue, %3.2 % -1.1 % 3.3 % 23.0 % 29.8 %
EBITDA2 599 2 340 3 727 3 660 14 313
Operating profit (EBIT)2 304 2 086 3 155 3 161 13 245
Operating profit, % of revenue24.5 % 22.9 % 18.0 % 18.6 % 32.2 %
Result for review period1 774 1 607 1 647 2 500 10 337
Result for review period, % of revenue18.8 % 17.6 % 9.4 % 14.7 % 25.2 %
Balance sheet total89 139 37 843 89 139 37 843 48 355
Cash flow from Operations-973 1 572 3 024 1 163 11 806
Net cash56 901 13 081 56 901 13 081 20 016
Cash position60 575 16 755 60 575 16 755 23 690
Net gearing, %-74.3 % -47.5 % -74.3 % -47.5 % -56.6 %
Equity ratio, %85.9 % 72.8 % 85.9 % 72.8 % 73.2 %
Capital expenditures2 531 1 119 4 584 2 634 6 346
Average number of personnel during review period (FTE)280 258 277 262 265
Headcount at the end of period293 266 293 266 275
Earnings per share, €0.136 0.133 0.126 0.207 0.856
Earnings per share, € (diluted)0.127 0.126 0.118 0.196 0.797
Number of shares at the end of period13 072 150 12 072 150 13 072 15012 072 15012 072 150

Calculation formulas used for the indicators

EBITDA = operating profit (EBIT) + depreciation and amortization
Net cash = cash in hand and at banks + liquid investments – interest-bearing liabilities
Net gearing = (interest-bearing liabilities – cash in hand and at banks – liquid investments) / shareholders’ equity
Equity ratio = shareholders’ equity / (balance sheet total – advances received)

COMMENTS BY CEO TERO VIRTALA​

During April–June 2021, revenue was €9.4M (9.1) and operating profit was €2.3M (2.1). Control’s royalty revenues were slightly higher in Q2 2021 than in Q2 2020, while the development payments from our partners were at a lower level. Cash flow from operations in Q2 2021 was €–1.0M and cash balance at the end of the period was €60.6M.

The cash position has provided us with stronger means to execute our strategy and carry out our ambitious long-term growth plans. In the second quarter, we advanced in creating category-defining games and expanding our games into long-term franchises. We also expanded our multi-project capabilities and strengthened our in-house capabilities related to project financing and publishing activities.

In June, we signed a co-publishing and development agreement with 505 Games for a newly announced game project called Condor. Condor is a 4-player cooperative PvE (player vs. environment) game, set in the world of our award-winning Control. In addition, we agreed on collaboration terms for a future, bigger-budget Control game. This is a good example of our capability to create franchises that can grow into multiple meaningful, high-quality future games. We can also enhance our publishing role strategically, with a trusted partner like 505 Games.

We continue actively marketing Control. Control Ultimate Edition was announced for Google Stadia and launched after the reporting period on July 27th. Control was also included as a limited time free offering in Epic Game Store’s Mega Sale 2021. Overall, new platforms, services and special offerings give us valuable lessons for the future, bring additional revenue, help us to reach new audiences and increase Control brand awareness. Control has already reached a formidable audience, having been played by over 10 million players. The growing audience and brand awareness are valuable as we continue to support Control and develop Condor, and we are in the early conception phase for a future, bigger-budget Control game.

We have a small Crossfire team focusing on supporting the upcoming launches of Crossfire’s HD story mode and CrossfireX. We expect these launches to happen later this year. Crossfire’s HD multiplayer mode was already launched in China by Smilegate and Tencent in June.

Remedy’s AAA game project with Epic Games has moved into full production, and a second, smaller-scale game remains in full production mode. Vanguard, our free-to-play co-op game project, is still progressing at a good pace, with selected internal and external closed gameplay tests.

Our headcount grew to 293 by the end of June 2021. Earlier in 2021, we started piloting and evaluating new ways to attract and recruit talent that will be based outside Finland. Our main focus has been in Europe, and I am satisfied that we have been able to reach our targets related to recruitment, onboarding and teamwork. During the second quarter, we also continued our initiatives related to production capabilities, Northlight technology, people, teams, and ways of working.

I am happy with the progress we have made so far in 2021. Our financial position is stronger than before. Control continues to reach new players, expands into new games, and is a strong proof of our ability to create category defining games and brands. Our multi-project model is continuously developing and we are approaching a phase where we can launch new games more often and more regularly. We are on track to reach our ambitious long-term growth objectives.

FUTURE OUTLOOK​

The future outlook remains unchanged. Remedy expects its revenue and operating profit to increase during 2021. Majority of the revenue and operating profit growth is expected to materialize during the second half-year period.

EVENTS AFTER THE REPORTING PERIOD​

No significant events after the end of the reporting period.

BRIEFING INVITATION​

Remedy will host a half-year review 1 January – 30 June 2021 review webcast today 13 August 2021 at 11:00 am (EEST). CEO Tero Virtala and CFO Terhi Kauppi will present the half-year 2021 review and Q2 2021 highlights, as well as give an overview of current company operations.
 

Kuranghi

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Apr 17, 2015
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Could they actually make a new Max Payne or do Rockstar have those rights? I don't know that they would actually want to do it but would like to know if its possible at least.
 

anthony2690

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Apr 16, 2021
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Oh wow, crossfire X is still planned for this year, very surprised they didn't even have a trailer for it at Xbox's E3 now.
 

Kuranghi

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Apr 17, 2015
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Rockstar could pay them to do it, and publish it

I'd really love if they could do a Max Payne game building on all the physics work they did for Control. Could be used crazily in dream/drug sequences, but just having stuff like the jeep crashing into the reception in MP3 happen in real-time gameplay and have you able to affect it would be amazing too.
 

Kuranghi

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Apr 17, 2015
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This make me want to replay QB. I wonder if its harder to run Arkham Knight or Quantum Break at max settings, locked 60 at 4K :pie_thinking:

QB without reconstruction turned on ofc.