01-05-2025
Remedy Entertainment PLC (RMDEF) Q1 2025 Earnings Call Highlights: Revenue Surge and Strategic Moves
Revenue: EUR13.4 million, increased by 24% from a year ago.
EBIT: EUR1.3 million.
EBITDA: EUR2.6 million.
Cash Flow from Operations: EUR6.6 million negative, mainly due to payment timings.
Development Fees: EUR10.7 million, higher than the comparison period.
Royalties and Game Sales: EUR2.6 million, higher than the comparison period.
External Work Expenses: EUR3.6 million, 22% lower than the comparison period.
Personnel Expenses: Increased by 5.9% year on year.
Cash Position: EUR28 million, decreased by EUR13.1 million from the previous quarter.
Cash Management Investments: EUR17.3 million.
Cash and Cash Equivalents: EUR10.7 million.
Warning! GuruFocus has detected 4 Warning Signs with RMDEF.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Remedy Entertainment PLC (RMDEF) reported a 24% increase in revenue, reaching EUR13.4 million for Q1 2025.
The company returned to profitability with an EBIT of EUR1.3 million and EBITDA of EUR2.6 million.
Remedy successfully acquired the publishing rights to the Control franchise, allowing them to fully drive its sales.
The company has transitioned to self-publishing, with a dedicated team of 25 professionals, enhancing control over their game launches.
FBC Firebreak, Remedy's first self-published game, is set to launch on June 17th, with positive early reception from media and players.
Cash flow from operations was negative at EUR6.6 million, primarily due to payment timings.
The acquisition of Control's publishing rights led to a slower sales quarter for the franchise.
External development costs decreased, reflecting potential variability in project needs and expenses.
The company faces a competitive gaming market, with potential challenges in capturing audience attention.
There is uncertainty regarding the impact of tariffs and currency fluctuations on future sales and profitability.
Q: How have expectations for FBC Firebreak developed since the beginning of the year after receiving feedback from players and media? A: Tero Virtala, CEO: The reception has been very positive, confirming our belief in the game's quality. External validation from players and media has been inspiring and motivating, reducing some of the uncertainties inherent in game development.
Q: How do you view the publishing window for FBC Firebreak in June, and what are the main competitors? A: Tero Virtala, CEO: June is a good window for the game. While the gaming market is competitive, we believe the timing is favorable. Although some co-op games are releasing in May, June typically sees a good audience for new games, and we are well-positioned for our launch.
Q: Is FBC Firebreak still coming to PC Game Pass? A: Tero Virtala, CEO: Yes, FBC Firebreak will be available on PC Game Pass. When referring to Game Pass on Xbox, it includes PC Game Pass as well.
Q: Will there be a trailer or teaser for the Max Payne 1 and 2 remake this year? A: Tero Virtala, CEO: The Max Payne remake will be published by Rockstar Games, and all communications and marketing are managed by them. We are not commenting on this.
Q: Have external development costs decreased permanently, or is it related to the development phase of different projects? A: Santtu Kallionpaa, CFO: The decrease in external development costs reflects the needs of current game projects. Compared to Q1 2024, we had different external development costs, and now all are related to current projects in development.
Q: Do you foresee any need to increase operating expenses in the coming quarters? A: Santtu Kallionpaa, CFO: We do not anticipate significant increases in our permanent organization. However, self-publishing may incur additional marketing costs in the coming quarters.
Q: How have you ensured FBC Firebreak will work technically at launch without crashing due to high player influx? A: Tero Virtala, CEO: Ensuring technical stability is a key part of development. We have conducted QA and various tests to ensure the game can handle high player volumes, following standard routines for such games.
Q: How do you intend to expand your marketing strategy and extend your reach, particularly for the back catalog? A: Tero Virtala, CEO: While we cannot publicly discuss specifics, having our own publishing team allows us to focus on clear target audiences and secondary opportunities for our games. We have plans to reach these audiences effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
