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Remedy: Major strategic decision ahead

REMEDYResearch21.03.2024 klo 10.00
Atte RiikolaAnalyst
Discuss
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After a flurry of news over the past few months, the Q4 report offered little of substance. The outlook for improvement was also of limited informative value, as the decision to choose a publishing partner or to self-publish Condor and Control 2 will have a material impact on Remedy's near-term figures. This is an important long-term strategic decision that will shape the company's direction for the next decade. Given the potential of the Control franchise, we believe that the company will work towards self-publishing both or one of the projects, which will also require additional funding. Remedy's long-term potential is very attractive and at the current valuation we see the risk/reward ratio as a reason to stay long with the stock.

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Remedy Entertainment is a game developer. Its operations are primarily focused on the development of action games, with a particular focus on 3D technology. Examples of games that the company has developed include several different versions of Alan Wake, Max Payne, and Control. Remedy also develops its own game engine and tooling technology that powers many of its games. The company was founded in 1995 and is headquartered in Espoo, Finland.

Read more on company page

Key Estimate Figures20.03.2024

202324e25e
Revenue33.950.459.5
growth-%-22.2 %48.6 %18.0 %
EBIT (adj.)-28.6-12.6-4.3
EBIT-% (adj.)-84.4 %-25.0 %-7.2 %
EPS (adj.)-1.68-0.72-0.25
Dividend0.000.000.00
Dividend %
P/E (adj.)neg.neg.neg.
EV/EBITDAneg.neg.143.5

Forum discussions

I think this sell-off of shares by major shareholders went pretty much as expected, since the main owners are soon reaching retirement age and...
22 minutes ago
by Pohjolan Eka
0
As a Remedy shareholder, one might consider that we now have an identifiable individual shareholder who, based on a couple of sentences, seems...
24 minutes ago
by Arvuuttaja
0
It looks like another 16.1k shares have moved through Carnegie again. Herlin is probably happy to rake in more ownership, since only a few retail...
45 minutes ago
9
Tero Virtala still hasn’t reduced his holdings by any significant amount. He still owns 288,000 shares. Apparently, he believes the games will...
2 hours ago
by Vinski74
0
Why wouldn’t they? Järvi has drawn a lot of inspiration for his artistic vision from the works of David Lynch and Stephen King, for example....
2 hours ago
by tonotsa
2
Remedy has “somewhat” lightened Järvi’s burden by appointing Kasurinen as the creative director for the Control series. Thus, Järvi is “only...
2 hours ago
by poutapilviä
3
I completely agree with this myself; Järvi’s indispensability hasn’t necessarily translated into runaway success for the games anyway. Success...
2 hours ago
by Spwni
13