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Analyytikko
Redeye keeps its valuation range and base case unchanged despite a lowered revenue and EBIT expectation in 2023.
Revenues came in lower than expected during the quarter. However, Remedy communicated in its outlook that the company still expects its revenue to remain at the previous year’s level, which means a big chunk of revenue is expected in Q4.
Redeye lowers its expectations and valuation on Remedy. However, we expect a steady build-up period will be initiated at the beginning of 2023 when game projects move into the next phase of development.
Redeye will not make any immediate adjustments following the lowered guidance for 2022 from Remedy. Our research update published in April expected relatively slow revenue growth and a significantly lower EBIT compared to 2021.
Redeye has done some adjustments after the Q1 result. Remedy has five ongoing projects which means one of the biggest challenges going forward is to find the best possible personnel to recruit.
Redeye comments on Remedy’s Q1 business review. Revenue was EUR 1.3 million above our estimate, EUR 12.7 million versus EUR 11.4 million. The cost base was roughly in line, which resulted in an EBIT somewhat above our estimate.
Redeye updates its financial projections in Remedy Entertainment. The gaming studio has secured two significant agreements with two of the biggest players in the industry, namely Tencent and Take-Two Interactive.
Redeye comment on Remedy’s full-year report. Remedy posted an EBIT result in line with our estimated and somewhat higher revenue than expected.
Redeye comments on the favorable Tencent agreement and updates its estimates for 2022. A few days before New Year’s Eve Remedy announced the awaited partnership agreement for its upcoming co-operative multiplayer game codenamed Vanguard.
During the night Swedish Time (around 2:00 AM), The Game Awards will be held. This will be a big event for Nordic Gaming. Microsoft will most likely reveal the launch date for Crossfire X.
