Remedy has reported a 49% increase in revenues for fiscal year 2024, with Alan Wake 2 successfully covering its development expenses
Remedy's financial statement for the fiscal year shows a significant increase in revenue alongside reduced operating losses compared to the previous year.
The financial update also covered the quarter ending December 2024, during which "Alan Wake 2" covered its production expenses, began earning royalties, and surpassed the sale of two million copies.
Financial Summary:
Q4 2024
- Revenue: €11.7 million, a rise of 13.1%
- Operating loss: €1.4 million, reduced from €12.8 million in 2023
FY 2024
- Revenue: €33.9 million, an increase of 49.3%
- Operating loss: €4.3 million, improved from €28.6 million in 2023
Key Points:
The 49.3% uplift in FY2024 revenue is attributed to development fees from Control 2, which Remedy will self-publish, and the Max Payne 1 and 2 remake funded by Rockstar. Additional revenue came from royalties on Control and Alan Wake Remastered.
By Q4's end, "Alan Wake 2" had recouped its development and marketing expenses, begun generating royalties, and achieved over two million sales since its debut in October 2023.
Remedy credits Alan Wake 2's sustained success to its DLCs, Night Springs and The Lake House, along with its physical release last year.
Within this period, Alan Wake Remastered development costs were fully depreciated and are no longer listed as assets.
In the past year, notable achievements for Remedy included reclaiming the Control franchise rights from 505 Games and forming a strategic alliance with Annapurna.
The deal with Annapurna resulted in a 50% financing of Control 2 and permits expanding Control and Alan Wake to film and TV.
The partnership led to a €3.4 million write-off in previous development expenditures for the Control franchise as a singular expense.
In September, Tencent extended a €15 million loan to Remedy to aid in the self-publishing of its games.
In its gaming lineup, FBC: Firebreak is fully in production and will be self-published by Remedy. Control 2 reached full production status at the close of Q4, while the Max Payne remake is said to be progressing steadily.
CEO Tero Virtala stated, "2024 was a year marked by decisive actions that pave the way for future growth. We were delighted to reveal our strategic partnership with Annapurna in August, as well as the convertible loan from Tencent in September."
Virtala also remarked on the benefits of their partnership with Annapurna, allowing them to broaden their audience and franchise expansions, whereas Tencent's financing bolsters their self-publishing ambitions.
Looking forward, Virtala concluded, "We are well-positioned to begin our strategic phase for 2025-2030 and are optimistic about meeting our targets. We foresee 2025 as the onset of a new growth era."
Remedy anticipates an increase in revenue over the prior year with a positive operating profit. They aspire to double their 2024 revenue by 2027, with sustained growth beyond that point.