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Research

Remedy: Patiently waiting for decisions on Control franchise

By Atte RiikolaAnalyst
Remedy Entertainment
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Remedy's Q1 results were well above our cautious expectations, and the company's game projects are currently progressing as planned. Negotiations to choose a publishing partner or self-publish Condor and Control 2 are ongoing, and decisions on these will determine the direction of the company 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 we view the forecast risks associated with the ongoing negotiations as positive. Thus, we will stick with the stock to see the outcome of the negotiations, even though in the short term and on current estimates the valuation is already starting to look tight.

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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 Figures29.04.2024

202324e25e
Revenue33.948.659.0
growth-%-22.2 %43.3 %21.3 %
EBIT (adj.)-28.6-8.8-3.1
EBIT-% (adj.)-84.4 %-18.0 %-5.2 %
EPS (adj.)-1.68-0.52-0.18
Dividend0.000.000.00
Dividend %
P/E (adj.)neg.neg.neg.
EV/EBITDAneg.neg.76.1

Forum discussions

The release of Control Resonant towards the end of Q2 will, in my own estimation, be quite challenging to achieve. Of course, the start of marketing...
3 hours ago
by Henkka
2
Of course, delays are always possible in the industry, but it takes a pretty strong view to believe that the game wouldn’t be out next year....
4 hours ago
by Relaaja
6
I somewhat believe that during Midsummer, people will still be playing other Remedy games than Resonantia. If the release isn’t pushed to the...
4 hours ago
by marmot76
4
“The release of Control Resonant already in 2026 was a positive surprise compared to our expectations, and we have updated our assumption for...
4 hours ago
by Miika21
5
Control’s 2026 release window is a Trumpian half-truth in the category of Iraq’s nuclear weapons - if it’s said, it is or maybe it isn’t, facts...
5 hours ago
by Trivial
0
That followers/members tracking was handy, thanks! At this stage, so soon after the announcement, wishlists are significantly higher than the...
yesterday
by Akee
20
And with this game too, there will surely be sales (and probably offers) for e.g. Control 1. For me, at least, it made me think, ‘oh, maybe ...
yesterday
by Zesvel
3
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