Remedy Sets Ambitious Growth Targets and Receives Royalties From Alan Wake 2

Alan Wake 2 has sold over 2 million units and the game has started to generate royalties. In 2025, Remedy Entertainment is preparing for its 30th anniversary and its biggest year yet as a developer and publisher.

Finnish games developer and publisher Remedy Entertainment increased revenues by 49.3% to €50.7 million in the period from January to December 2024. EBITDA was €2.5 million, or 5.0% of revenues. Operating profit (EBIT) was €-4.3 million, a significant improvement on the previous year's €-28.6 million. The operating margin was -8.4% of sales.

Sales of Alan Wake 2 exceeded two million units in the fourth quarter. The game, released with Epic Games Publishing in October 2023, had recouped its development and marketing investment, meaning that Remedy began to earn royalties towards the end of the quarter. In October 2024, Remedy and Epic Games launched The Lake House expansion. This coincided with the release of the physical retail edition of the game, and in November Remedy released a PS5 Pro-specific update.

The self-publishing team continued to grow, with new members dedicated to the FBC: Firebreak brand and marketing. The co-op action game will be self-published by Remedy in 2025. Control 2 completed the production readiness phase and went into full production in February 2025. Max Payne 1&2 Remake is making steady progress in full production.

Tero Virtala, Remedy CEO: "2024 was full of concrete actions that will enable future growth. I want to thank all Remedians for their dedication throughout this eventful year. Since acquiring the Control rights in February, we evaluated the options for future business models, aiming to strengthen our position in the value chain. Throughout the year we have been building readiness towards self-publishing and more regular game releases. We were very happy to announce the strategic partnership with Annapurna in August, as well as the convertible loan from Tencent in September. With Annapurna, we can further grow our audiences and expand our franchises beyond games, whereas the financing from Tencent supports our self-publishing strategy."

In August 2024, Remedy and Annapurna announced a strategic partnership agreement under which Annapurna will fund 50% of the development budget for Control 2 and acquire the rights to expand the Control and Alan Wake franchises into film and television. In September 2024, Remedy announced that it had entered into a €15 million unsecured convertible loan agreement with Tencent. In the second half of 2024, Remedy will also take over the various publishing and community management activities of 505 Games related to Control.

Tero Virtala, Remedy CEO: "We are in a great place to begin our strategy period 2025-2030 and have set targets we are confident in reaching as announced in our Capital Markets Day in November. By 2027 we aim to double our 2024 revenue with an EBITDA margin of 30%. 2025 will mark the start of a new growth era for us."

Remedy expects revenues and operating profit (EBIT) to be up on the previous year, with a positive operating profit. In 2025, Remedy is preparing for its 30th anniversary and its biggest year yet as a developer and publisher.

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