Video game company for the long run
Remedy has progressed as planned in all its strategic objectives since the IPO a year ago. The gaming projects have progressed as scheduled, and Remedy has advanced successfully to the simultaneous development of two large scale gaming projects. The company has a good relationship with two strong publishers, with whom we believe the co-operation has gone well thus far. Although the progress of the strategy does not yet reflect in the company’s numbers due to the developmental stage of the projects, the development going as planned has substantially decreased Remedy’s risk level when compared to last year. We expect the multi- project model strategy transition currently underway to start to bear fruit next year. We reiterate our buy recommendation and increase our target price to 8.50 EUR (previously 7.5 EUR).
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 Figures2018-06-03
| 2017 | 18e | 19e | |
|---|---|---|---|
| Revenue | 17.2 | 20.9 | 31.2 |
| growth-% | 4.6 % | 21.5 % | 49.6 % |
| EBIT (adj.) | 2.6 | -0.0 | 7.7 |
| EBIT-% (adj.) | 15.0 % | -0.2 % | 24.7 % |
| EPS (adj.) | 0.16 | -0.01 | 0.50 |
| Dividend | 0.00 | 0.00 | 0.20 |
| Dividend % | 1.3 % | ||
| P/E (adj.) | 40.3 | neg. | 29.8 |
| EV/EBITDA | 25.8 | 972.2 | 19.4 |
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