Remedy (REMEDY) CMD 2024 summary

Strategic direction and future plans

• Entering a new growth era in 2025, aiming for regular annual game launches and expansion of existing franchises into world-class entertainment properties.

• Four strategic pillars: grow world-class franchises, create distinctive games, enable successful productions, and self-publish owned games.

• Focus on expanding Alan Wake and Control through sequels, spin-offs, and transmedia opportunities, leveraging a partnership with Annapurna for TV and film.

• Max Payne Remake continues as a partner project with Rockstar, balancing the portfolio and utilizing internal synergies.

• No significant headcount growth planned; current organization supports four concurrent projects, with selective hiring for publishing and key areas.

Financial guidance and targets

• Target to double 2024 revenue by 2027, with continued growth beyond that milestone.

• Aim for a 30% EBITDA margin by 2027, maintaining at least that level through 2030.

• Minimum 100% return on investment per game, with business cases built for 3–5 year payback periods.

• Self-publishing model expected to significantly increase profit potential compared to previous publisher-funded models.

• Sufficient funding secured, including a €15 million convertible loan from Tencent, and a strong cash position to support self-publishing transition.

Business model and self-publishing transition

• Shift from development fees and royalties to a revenue mix dominated by self-published game sales.

• Self-publishing enables higher revenue share, closer integration between development and publishing, and more direct audience engagement.

• Publishing team expanded to over 18 people, targeting just above 20, with operational scale achieved through key external partners.

• Marketing budgets for AAA launches are managed carefully, with flexibility to adjust spend post-launch, and partnerships with platform holders to maximize visibility.

• Risks in self-publishing include marketing effectiveness and competition, mitigated by experience, partnerships, and careful launch timing.