Remedy Sees 7% Revenue Growth Despite Alan Wake's Disappointing Performance

Remedy has unveiled its financial report for the quarter ending September 30, 2022, showcasing a revenue increase, albeit with a notable decline in operating profit. The key figures include: Q2 revenue of €7.9 million, representing a 7% year-on-year increase, Q2 operating profit resulting in a €3.0 million loss, down from €0.2 million in 2021, and Q2 net income of €57.5 million, marking a 0.3% year-on-year increase. Development fees comprised 95% of revenues, while royalties accounted for the remaining 5%. Remedy highlighted that development fees from upcoming titles, including Alan Wake 2 and Max Payne 1&2 Remake, were significant contributors, whereas Alan Wake Remastered and Crossfire did not yield royalties. The decrease in operating profit was largely attributed to increased external development expenses related to Alan Wake 2 and the upcoming Control spin-off, codenamed Condor. The studio anticipates revenue to remain steady, with a forecasted decline in operating results compared to 2021. Alan Wake 2 is still slated for release in 2023, and Remedy is also working on Vanguard, a free-to-play title co-published with Tencent, currently in its proof-of-concept stage.