Q3 2024 Remedy Entertainment Oyj Earnings Call Transcript
Key Points
- Remedy Entertainment PLC (STU:8P8) reported a significant increase in revenue for the third quarter, reaching EUR 17.9 million, more than double the previous year's figure.
- The company achieved a positive operating profit of EUR 2.4 million, a substantial improvement from a loss of EUR 4.2 million in the same period last year.
- A strategic partnership with Annapurna and a convertible loan agreement with Tencent were key developments, providing financial support and opportunities for growth.
- The launch of Alan Wake 2's second expansion and the announcement of a new game, FBC: Firebreak, indicate strong progress in their game development pipeline.
- Remedy Entertainment PLC (STU:8P8) is moving towards self-publishing, which is expected to provide greater long-term value and control over game commercialization.
- The reported revenue included a onetime payment from Annapurna, which will not recur in future quarters, potentially impacting future revenue figures.
- Alan Wake 2 has not yet fully recouped its development and marketing expenses, delaying royalty generation.
- The decision to self-publish may result in lower short-term development fees, impacting immediate financial performance.
- The economic climate has been challenging for securing large-scale financing, affecting the company's investment strategies.
- Despite improvements, the EBIT remains negative for the year, indicating ongoing financial challenges.
Hello, everyone, and thank you for joining this Remedy Entertainment webcast. My name is Liisa Eloranta, and I run the Investor Relations at Remedy. Today, we will go through Remedy's business review for July-September 2024. With me here are Tero Virtala, Remedy's CEO; and Santtu Kallionpaa, Remedy's CFO. We will have a Q&A session after the presentation. Tero, the floor is yours.
Welcome, everyone. All right. So, let's have a look at the third quarter highlights. In the third quarter, our revenue was EUR17.9 million, which is over two times more than last year in the comparison period. Our operating profit was EUR2.4 million. Last year, in the third quarter, it was minus EUR4.2 million.
It's good to highlight that the big contributor to our third quarter numbers was a onetime payment that from our new partner, Annapurna, came in. So this onetime payment from them will not repeat in the same amount in the
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