Remedy Sees 49% Revenue Surge in FY24, Alan Wake 2 Breaks Even

Remedy has unveiled its fiscal year financial results, highlighting substantial revenue growth and reduced operating losses compared to the previous year. The latest report also details the performance of Alan Wake 2, which has not only recouped its development costs but also started generating royalties, with sales exceeding two million units. Key takeaways include: Q4 2024 revenue of €11.7 million, representing a 13.1% increase, and an operating loss of €1.4 million, significantly lower than the €12.8 million loss in 2023. For FY 2024, revenue reached €33.9 million, a 49.3% jump, with an operating loss of €4.3 million, down from €28.6 million in 2023. The revenue surge is attributed to development fees from Control 2 and the Max Payne 1 and 2 remake, as well as royalties from Control and Alan Wake Remastered. By the end of Q4, Alan Wake 2 had covered its development and marketing expenses, begun accruing royalties, and sold over two million units since its launch in October 2023. The game's long-term success is credited to its DLCs, Night Springs and The Lake House, and its physical release. The development costs of Alan Wake Remastered were fully depreciated, and no longer count as an asset. Over the past year, Remedy has achieved significant milestones, including regaining the rights to its Control franchise and partnering with Annapurna. This partnership saw Annapurna finance 50% of Control 2 and gain rights to expand the Control and Alan Wake franchises into film and television. Remedy's partnership with Annapurna resulted in a one-off €3.4 million write-off of past development costs related to the Control franchise. In September, Remedy received a €15 million loan from Tencent to support self-publishing efforts. Currently, FBC: Firebreak is in full production as Remedy's first self-published title, Control 2 has entered full production, and the Max Payne 1 and 2 remake is making steady progress. According to Remedy CEO Tero Virtala, '2024 was marked by concrete actions that will drive future growth.' Virtala expressed happiness with the strategic partnership with Annapurna and the financing from Tencent, stating, 'With Annapurna, we can grow our audiences and expand our franchises beyond games, while the financing from Tencent supports our self-publishing strategy.' Looking ahead, Remedy expects revenue growth and a positive operating profit, aiming to double its 2024 revenue by 2027 with continued growth beyond.