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Remedy revenue drops 22.2% to €33.9 million in 2023

Remedy has published its financial results for 2023, and reported a 22.2% decrease in revenue to €33.9 million compared to €43.6 million during the same period last year.

The Finnish developer reported an operating loss of €28.6 million for its full-year results, but noted that it received €5.2 million in royalties from Alan Wake Remastered.

The numbers:

Q4 2023:

Revenue: €10.3 million (down 24.4%)
Operating loss: €12.8 million (compared to operating profit of €2.1 million in 2022)

FY 2023:

Revenue: €33.9 million (down 22.2%)
Operating loss: €28.6 million (compared to operating loss of €0.6 million in 2022)

The highlights:

Remedy attributed the decline in revenue and profit to “increased investments” in ongoing projects currently in development, in addition to an impairment charge of €7.2 million for its project codenamed Kestrel (previously Vanguard) after the firm announced it would be changing the title from a free-to-play multiplayer to a premium title last November.

The report also included results for the three months ended December 2023, with revenue declining by 24.4% to €10.3 million, and operating profit at a loss of €12.8 million.

Despite Remedy describing 2023 as a “challenging year,” its CEO Tero Virtala highlighted the release of Alan Wake 2 in October as a major success for the developer.

“The sales of Alan Wake 2 started well despite a competitive launch window,” Virtala said. “Alan Wake 2 has already recouped a significant part of the investments made by Epic Games Publishing, and we expect the game to be a meaningful revenue and profitability driver for the year.”

He added: “With Alan Wake and Control we now have two established franchises, and our ambition is to grow them into franchises that have high brand recognition, steadily growing user base, more regular cadence of sequels and an ability to generate revenue and profits and a high level.”

Speaking of Control, Remedy acquired the full publishing rights to the franchise from 505 Games for €17 million at the end of its fourth quarter. It now owns the rights to the original game, its sequel, and the multiplayer spin-off codenamed Condor that is currently in development.

As for other projects currently in development, Virtala said that the remakes of Max Payne 1 and 2 “are going to be a major new game with great potential” due to having a similar development budget as Alan Wake 2.

“We expect Condor, Control 2, and the Max Payne 1 and 2 remake projects to advance to the next stages of development during the first half of 2024,” he said.

Looking ahead, Remedy expects revenue to increase from the previous year and operating profit to improve. The developer said this was dependent on whether they decide to self-publish “and/or choose a new publishing partner” for Control 2 and Condor.

In the long term, the firm is focused on building the Remedy Connected Universe with Alan Wake and Control.

“Growing and expanding these franchises will be a key part of our future,” it said, in addition to Max Payne.

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