The development fees raised the profit of the game company Remedy beyond expectations

Gaming company Remedy reported on its third quarter result. Compared to the comparison period a year ago, the signs of the company’s near future are a little clearer.

The company’s operating profit increased to 2.4 million euros in July–September, while in the comparison period a year ago the result was a loss of 5.5 million euros.

Turnover in the quarter was 17.9 million euros, compared to 7.8 million euros a year ago.

Database Factsetin according to the company is followed by only two analysts. In the operating profit forecasts, the average was 2.1 million euros operating loss. The average forecast for Remedy’s turnover was 12.1 million euros.

The company’s EBITDA in the quarter was 6.6 million euros, while it was 4.2 million euros in loss in the same period a year ago.

Earnings per share increased to EUR 0.14 per share in the period, compared to EUR -0.32 per share a year ago.

Alan Wake 2 didn’t bring royalties yet

The company’s revenue growth was driven by supportive development fees.

Managing director Tero Virtalan according to the development fees increased mainly from Annapurna Control 2due to the one-time payment related to , as well as Max Payne 1&2 Remakesta and Control 2with the increased development fees received from

“Royalties decreased slightly and mainly consisted of control and sales of older Alan Wake games,” says Virtala.

The company’s newest game Alan Wake 2 not yet generating royalties. Remedy receives royalties from the sale of the game after its development and marketing costs have been covered.

According to the company, at the end of the quarter Alan Wake 2 had covered “most” of its development and marketing costs. After the end of the quarter on 22.10. Alan Wake 2‘s second expansion, The Lake House, was released alongside the physical Deluxe version of the game.

“Our games in development progressed as planned during the quarter. In August, we signed a strategic cooperation agreement with Annapurna, which ensures that we can develop Control 2into a great game. The agreement also enables us to switch to self-publishing and expand our game brands to other media, such as television and movies.”

“After acquiring the rights to Control in February 2024, we have built capabilities for self-publishing and more regular game publishing. In September, we also entered into a 15 million euro convertible bond agreement with Tencent to strengthen our position in the value chain and gain more control over how our games are commercialized.”

The company plans to share more about its near-future plans and updated strategy at the capital market day on November 19.