Remedy revenues rise 49% during FY24, Alan Wake 2 recoups development costs

Remedy has published its financial results for the fiscal year, reporting major growth in revenue and decreases in operating losses compared to the same period last year.

The report also included results for the three months ended December 2024, during which time Alan Wake 2 recouped its development costs, started to accrue royalties, and exceeded two million units sold.

Here's what you need to know:

The numbers:

Q4 2024

Revenue: €11.7 million (up 13.1%) Operating loss: €1.4 million (compared to operating loss of €12.8 million in 2023)

FY 2024

Revenue: €33.9 million (up 49.3%) Operating loss: €4.3 million (compared to operating loss of €28.6 million in 2023)

The highlights:

Remedy attributed the 49.3% jump in revenue for FY2024 to development fees from Control 2, which it will self-publish, and the Max Payne 1 and 2 remake financed by Rockstar. Revenue was also generated by royalties from Control and Alan Wake Remastered.

By the end of the fourth quarter, Alan Wake 2 had recouped its development and marketing costs. The game has also begun generating royalties, and has exceeded two million units sold since its October 2023 launch.

Remedy noted that the long-term success of Alan Wake 2 was a result of its two DLCs, Night Springs and The Lake House, and its physical release last year.

The development expenses of Alan Wake Remastered was fully depreciated during this period, and no longer counts as an asset.

Over the past year, Remedy has hit significant milestones such as acquiring the rights to its Control franchise from 505 Games and entering a partnership with Annapurna.

The latter saw Annapurna finance 50% of Control 2, and gained the rights to expand the Control and Alan Wake franchises into film and television.

Remedy's partnership with Annapurna led to a €3.4 million write-off of past development costs related to the Control franchise as a one-off expense.

Last September, Remedy received a €15 million loan from Tencent to support the developer in self-publishing its games.

Looking at its current games portfolio, FBC: Firebreak is in full production and will be Remedy's first self-published title. Control 2 entered full production at the end of Q4, while the Max Payne 1 and 2 remake is making "steady progress" in full production.

"2024 was full of concrete actions that will enable future growth," said Remedy CEO Tero Virtala. "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."

Virtala added: "We are in a great place to begin our strategy period 2025-2030 and have set targets we are confident in reaching. 2025 will mark the start of a new growth era for us."

Looking ahead, Remedy expects its revenue to increase compared to the previous year, and for its operating profit to be positive. It has set itself a target of doubling its 2024 revenue by 2027 "with continued growth beyond this milestone."