Remedy: Patiently waiting for decisions on Control franchise
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.
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 pageKey Estimate Figures2024-04-29
| 2023 | 24e | 25e | |
|---|---|---|---|
| Revenue | 33.9 | 48.6 | 59.0 |
| 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 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | neg. | 69.0 |
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