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REMEDY ENTERTAINMENT PLC: Half-year review 1.1.-30.6.2019
Reading Time: 19 minutes
Remedy Entertainment Plc | Company announcement 09:00 am 13 August 2019
HALF-YEAR REVIEW 1.1.–30.6.2019 (unaudited)
Control readies for launch, investments in game projects continued
HIGHLIGHTS FROM JANUARY–JUNE 2019
- Revenue 13 799 (9 224) thousand euros, change 49,6 %.
- Operating profit (EBIT) 1 461 (-388) thousand euros, 10,6 % of revenue
- The Board decided to capitalize product development costs related to new Remedy-owned game brand projects, effective from 1 January 2019. Positive effect of 445 thousand euros on operating profit.
- Positive effect on operating profit from one-time royalty booking of 2 471 thousand euros, consisting of royalty payments from previously released games. In relation to this, the publishing rights of Alan Wake games reverted to Remedy.
- Control reached the final stage of development and is getting ready to be released on 27 August on PlayStation 4, Xbox One and PC.
- Microsoft and Smilegate announced that CrossfireX will launch on Xbox One during 2020. Single player campaign developed by Remedy will be part of CrossfireX.
- The Company introduced an updated strategy for 2019–2022.
- The Company expanded the Executive Team with HR Director Mikaela Öberg-Mattila, Chief Commercial Officer Johannes Paloheimo and Chief Operating Officer Christopher Schmitz.
KEY FIGURES
| FAS, unaudited | 1–6/2019 | 1–6/2018 | 1–12/2018* | 1–12/2017* |
| Revenue, 1 000 € | 13 799 | 9 224 | 20 146 | 17 168 |
| Growth in revenue, % | 49,6 % | 11,1 % | 17,3 % | 4,6 % |
| Operating profit (EBIT), 1 000 € | 1 461 | -388 | 609 | 2 006 |
| Operating profit, % of revenue | 10,6 % | -4,2 % | 3,0 % | 11,7 % |
| Result for review period, 1 000 € | 1 170 | -348 | 532 | 1 469 |
| Result for review period, % of revenue | 8,5 % | -3,8 % | 2,6 % | 8,6 % |
| Balance sheet total, 1 000 € | 30 432 | 27 330 | 28 261 | 26 652 |
| Net cash, 1 000 € | 18 018 | 14 231 | 20 089 | 20 694 |
| Cash position, 1 000 € | 20 957 | 17 170 | 23 028 | 22 589 |
| Net gearing, % | -80,7 % | -66,3 % | -89,9 % | -94,8 % |
| Equity ratio, % | 73,3% | 78,6 % | 79,1 % | 81,9 % |
| Average number of personnel during review period | 213 | 158 | 169 | 139 |
| Earnings per share, € | 0,097 | -0,029 | 0,044 | 0,122 |
| Earnings per share, € (diluted) | 0,094 | -0,028 | 0,043 | 0,122 |
| Number of shares at the end of period | 12 072 150 | 12 072 150 | 12 072 150 | 12 072 150 |
* Audited
The Board decided to start capitalizing product development costs related to new Remedy-owned game brand projects, effective from 1 January 2019 onwards. Positive effect of 445 thousand euros on operating profit in the first half-year of 2019.
Calculation formulas used for the indicators
Net cash = cash in hand and at banks + liquid investments – interest-bearing liabilities
Net gearing = (interest-bearing liabilities – cash in hand and at banks – liquid investments) / shareholders’ equity
Equity ratio = shareholders’ equity / (balance sheet total – advances received)
Comments by CEO Tero Virtala
“The first half-year of 2019 was a period of heavy investments in our game projects, which proceeded according to our plans. There were no new product releases during this period.
Our revenue was €13,8M (€9,2M), with 49,6 % growth compared to the comparison period. Our operating profit was €1,5M (€-0,4M), being 10,6 % of our revenue. It’s noteworthy that our operating profit benefited from the one-time royalty income and the start of product development capitalization.
Our revenue mainly comprised of development fees received from the publishers of Control and Crossfire game projects. We also recognized one-time royalty of €2,5M, consisting of royalty payments from previously released games. In relation to this, the publishing rights of Alan Wake games reverted to Remedy. From 1 January 2019, we began partially capitalizing product development costs, starting with the third unannounced game project and the Vanguard project, with the effect of €0,4M on operating profit. Moving forward, Remedy will capitalize product development costs for all new projects that are based on the Company’s own game brands.
Our cash position remained strong, totaling €21,0M at the end of the period under review. Remedy’s secure financial position enables the Company’s growth investments and independence, providing a strong basis to develop our game projects, operations and business favorably.
Control is in the final stage of development and getting ready to launch on 27 August 2019. The focus of the last development phase has been on ensuring that the game is well balanced and fine-tuned on all platforms as well as preparing for post-launch support activities, including the downloadable content (DLC) to be released later. Marketing of Control is handled by its publisher 505 Games, who also entered into an agreement to release the PC version of the game as an Epic Games Store exclusive. Control will receive significant visibility on PlayStation marketing channels and the Epic Games Store, thanks to agreements made with respective parties. Control also gets additional promotion from graphics hardware company NVIDIA, whose latest RTX raytracing technology is supported in the PC version. Overall, Control’s marketing has kicked into a higher gear, gaining good exposure in key industry events such as GDC and E3, where the game received 24 nominations and 12 awards including best game of the show from Gamespot. High-profile visibility has also been gained via game industry influencers and the most popular gaming media such as IGN, which ran Control coverage for an entire month. In addition, a new story trailer was released to an excellent reception. The final big marketing push for Control continues as we head towards launching the game on PlayStation 4, Xbox One and PC on 27 August.
Remedy’s Crossfire work has continued according to plans. We finalized the first Crossfire game project with Smilegate during the second half of 2018, and soon after that in October continued the cooperation with a new Crossfire project, which is now in production. Smilegate announced a closed beta phase in China for a remaster of the original game titled Crossfire HD, which also includes Remedy’s single player campaign featured in the teaser trailer revealed in January 2019. In another Crossfire development, Microsoft announced during their E3 2019 media briefing that they are bringing Crossfire together with Smilegate to Xbox One: CrossfireX will be the first Crossfire game ever to be released on a console platform as it launches on Xbox One in 2020. The console version will also include our single player campaign.
Our third unannounced game project as well as the Vanguard project have progressed further with small early phase teams. The focus has been on game design, starting the development of the well understood parts of the games, prototyping the new and still uncertain areas, and building the teams further with both internal moves and recruitment. Early negotiations with potential business partners have also started, and as we are in a financially strong position and want to retain stronger business control of our games, we are not in a hurry to sign business partnerships for our new games.
The team dedicated to Remedy’s proprietary Northlight game engine and game development tools continued improvements according to our plans. The 40 people strong Northlight team has specifically put extra effort into developing workflows for creating high-quality creatures and digital doubles, automating game release and patching workflows to support multiple platforms, and across the board performance improvements for our game engine. Additionally, the team has been strengthening our technological support capabilities for having two simultaneous game projects in full production mode, as well as for the multi-platform release of Control on PlayStation 4, Xbox One and PC. The PC version of Control will support NVIDIA’s latest RTX raytracing technology, which has also required the Northlight engine team’s expertise.
Remedy’s HR has continued to develop and support our growing organization with continued emphasis on developing supervisor work. A good example of this have been the developments in gathering and giving relevant feedback that improve the ways we work in our projects and as a company, as well as help our people to develop professionally and affect their career paths within Remedy. We started to gather data and analyze our Employee Engagement during autumn 2018, and have continued to do so on a regular basis. Supervisors have been able to focus on some development areas relevant for their specific teams, based on data gathered from our employees. Our overall Employee Engagement Score at the end of June 2019 was 8,5 on a scale of 0–10. Remedy is benchmarked against other similar sized tech companies worldwide and we score above the average benchmark. To support our longer-term growth objectives, Remedy’s recruitment team has successfully attracted even more talent to our development teams and our personnel reached 220 full-time employees at the end of the first half of 2019.
During the period under review, we have also improved our quality assurance and user research capabilities. We have built our own internal game testing lab facilities, which have extensively been used for playtesting Control and gathering valuable feedback for the development team.
We set ourselves a growth-oriented strategy in 2016. During 2017 and 2018, we have been building the basis and making investments to enable that future growth. By early 2019, we had reached key strategic targets: we had developed our capabilities to create high-quality, longer lasting games, we had successfully transformed into a multi-project model organization, and had taken a stronger position in the value chain by both working on partners’ and Remedy’s game brands.
In early 2019, we started a new phase. We will focus on creating longer lasting games in engaging worlds, systematically pursue strong business ownership of our games, and continuously develop our organization for professionally managed game development, as well as empower and enable our teams and people to maximally use their special talents to create successful world-class games.
We have developed a lot as a company. While kicking off this new phase and preparing for the growth we have been aiming at, we have also extended our Executive Team during spring 2019. The new members include our HR Director Mikaela Öberg-Mattila, Chief Commercial Officer Johannes Paloheimo and newly appointed Chief Operating Officer Christopher Schmitz. In addition to myself, our Chairman of the Board and Chief Technology Officer Markus Mäki, Chief Financial Officer Terhi Kauppi and Creative Director Sami Järvi continue as members of the Executive Team.
During the second half of 2019, we will for the first time see the results of the development we have had, when Control launches on 27 August 2019. This marks the beginning of a new era of more frequent game releases in Remedy history, where we strive to launch at least one game or game expansion annually.”
Future outlook
The Company expects its revenue and operating profit to increase during the full year 2019. The emphasis on the result of the financial year is on revenue during the second half-year period.
Based on its growth strategy and to enable frequent game releases in the future, the Company will continue working on Smilegate-owned Crossfire and on three game brands that are owned and significantly financed by Remedy. Control is the first one of these games to launch on 27 August 2019 and its success will have a significant impact on the Company’s result during the second half of 2019.
Financial targets
In the long term, the Company’s aim is to create profitable growth by expanding the product portfolio and entering into new partnerships. The aim is for the growth to mainly take place organically.
The amount of royalties and development fees received from publisher partners depends on future game projects, game release schedules and other terms and conditions of the cooperation. Fluctuations between half-yearly results and even between financial years may be significant, depending on the amount and timing of received development fees as well as game release schedules.
Financial review 1 January–30 June 2019
Result from business operations
The Company’s revenue for the period under review was 13 799 (9 224) thousand euros, an increase of 49,6 % year-on-year. Main factors contributing to the growth in revenue were the development of two simultaneous game projects and development fees received from their respective publishers. During the reporting period, the Company also recognized a one-time royalty consisting of royalty payments from previously released games.
The Board of Directors made a decision to capitalize product development expenses partially starting 1 January 2019. The decision concerned product development expenses for two projects, the third not yet announced project and project Vanguard, during the period under review. The Company capitalized 445 thousand euros of product development expenses during the reporting period. Product development expenses for other projects were not capitalized. The Company will from 1 January 2019 onwards capitalize product development expenses for all new own game brand product development projects, subject to FAS product capitalization rules. This means that product development expenses of the Company’s own game brand projects will be capitalized.
Other operating income for the period under review amounted to 180 (224) thousand euros and consisted of cost reimbursements received from a partner. During the comparison period, other operating income was comprised mainly of Business Finland research and development subsidies.
Operating profit (EBIT) amounted to 1 461 (-388) thousand euros, being 10,6 % of revenue. Main factors contributing to the increase in operating profit were a one-time royalty payment and capitalization of product development expenses. Effect of the aforementioned royalty income on operating profit was 2 471 thousand euros. Effect of product development expenses capitalization for new projects on operating profit was 445 thousand euros. If the effect of one-time royalty payment and capitalization of product development expenses is eliminated, the comparable operating profit for the period would be -1 455 (-388) thousand euros. Comparison table eliminating items affecting the comparability of operating profit for the reporting period and comparison period is in the financial tables section. Personnel expenses increased by 45,5 % during the reporting period compared to the comparison period due to the increased number of personnel. Materials and services expenses increased by 24,5 % due to the increase in outsourced work related to two projects in full production mode. Other operating expenses decreased by 4,3 % mainly due to lower administrative expenses during the reporting period. Comparison period’s other operating expenses were affected by expenses related to office move.
The net result for the period under review amounted to 1 170 (-348) thousand euros, being 8,5 % of revenue.
Financial position
The Company’s balance sheet total on 30 June 2019 was 30 432 (27 330) thousand euros.
The Company’s equity ratio on 30 June 2019 was 73,3 % (78,6 %) and net gearing -80,7 % (-66,3 %). The Company did not have any goodwill on its balance sheet.
Non-current assets
The non-current assets on the Company’s balance sheet on 30 June 2019 were 3 372 (2 375) thousand euros. The increase in non-current assets is largely due to product development expenses capitalization as well as technology and furniture purchases and renovation expenses of the new office recognized on the balance sheet.
Current assets
The current assets on the Company’s balance sheet on 30 June 2019 were 27 060 (24 955) thousand euros. Current assets were mainly comprised of cash in hand and on bank accounts, totaling to 20 957 (17 170) thousand euros, and short-term receivables totaling to 5 656 (7 249) thousand euros. The amount of receivables varies between periods due to the timing of the income from projects based on commercial terms.
Shareholders’ equity
The Company’s shareholders’ equity on 30 June 2019 was 22 315 (21 472) thousand euros. The shareholders’ equity was affected by 1 207 thousand euros dividend payment and by 1 170 thousand euros net profit for the financial period.
Liabilities
The Company’s liabilities on 30 June 2019 amounted to 8 117 (5 858) thousand euros. The change in liabilities is primarily due to an increase in accounts payables and accruals. Business Finland research and development loan of 2 939 (2 939) thousand euros was recorded in long-term liabilities.
Cash flow
Cash flow from business operations after interest paid and direct taxes for reporting period amounted to -12 (-4 400) thousand euros. The change in cash flow business operations compared to comparison period is due to significant project business payments, which vary based on invoicing milestones during each period.
Cash flow from investing activities during the reporting period amounted to -852 (-2 064) thousand euros. The capitalized product development expenses included in the investing activities’ cash flow amounted to 445 thousand euros during the reporting period. During the comparison period, investing activities’ cash flow was affected by one-time type items related to office premises renovation.
Financing cash flow amounted to -1 207 (1 046) thousand euros. Financing cash flow during the reporting period consisted of 1 207 thousand euros dividend payment, and during the comparison period, long-term liabilities were increased by 1 045 thousand euros due to Business Finland technology loan withdrawal.
Personnel, management and governance
The number of the Company’s personnel was 220 (164) at the end of the period under review, growth of +34,1 %. The majority of the new employees focus on our game projects and the development of our Northlight technology.
During the period under review, the Company’s Executive Team included CEO Tero Virtala, CFO Terhi Kauppi, Production Director Markus Mäki, Creative Director Sami Järvi, HR Director Mikaela Öberg-Mattila, Chief Commercial Officer Johannes Paloheimo and Chief Operating Officer Christopher Schmitz.
The Company’s Annual General Meeting, convening on 8 April 2019, re-elected Markus Mäki (Chair), Christian Fredrikson, Jussi Laakkonen, Ossi Pohjola and Henri Österlund as members of the Company’s Board of Directors for the term lasting until the 2020 Annual General Meeting.
Annual General Meeting 2019
The Annual General Meeting was held on 8 April 2019 in Espoo. The Annual General Meeting decided on the matters belonging to the Annual General Meeting, and
- adopted the income statement and balance sheet for the financial period ended 31 December 2018, and
- decided based on the Board of Directors’ proposal dividend distribution of 1 207 thousand euros from the profit and retained earnings of the financial year 2018.
In addition, the Annual General Meeting resolved to authorize the Board of Directors to decide on
- issuing shares or option rights or other special rights so that the maximum number of shares to be issued is 2 000 000 new or existing Company shares for a fee, corresponding to 16,57 % of all Company shares; and
- directed repurchase of the Company’s shares so that the maximum number of shares to be repurchased is 500 000.
Shares, shareholders and share-based incentive schemes
Remedy Entertainment Plc shares are traded on the First North market maintained by Nasdaq Helsinki Ltd with the trading code REMEDY. The closing price on the last trading day of the review period was 8,82 €.
| January–June 2019 | Highest share price, € | Lowest share price, € | Closing share price, € |
| REMEDY | 9,10 | 6,52 | 8,82 |
| 30.6.2019 | 30.6.2018 | 31.12.2018 | 31.12.2017 | |
| Market capitalization, € | 106 476 363 | 81 969 899 | 80 883 405 | 77 744 646 |
| Number of shareholders | 4 466 | 4 179 | 4 432 | 4 184 |
| Number of shares at the end of period | 12 072 150 | 12 072 150 | 12 072 150 | 12 072 150 |
| Number of shares at the end of period, diluted | 12 391 400 | 12 394 400 | 12 389 400 | 12 072 150 |
| Average number of shares within period | 12 072 150 | 12 072 150 | 12 072 150 | |
| Average number of shares within period, diluted | 12 394 400 | 12 125 858 | 12 263 567 |
The Company has one series of shares (ISIN: FI4000251897). The Company has no treasury shares. The number of shares in the Company was 12 072 150 on 30 June 2019. With its resolution on 8 April 2019, the Annual General Meeting authorized the Board of Directors to decide on a share issue and issue of special rights entitling to shares. Under the authorization, a maximum of 2 000 000 shares may be issued. On 30 June 2019, the unused authorization allowed the Board of Directors to issue 2 000 000 new shares.
The Board of Directors of Remedy Entertainment Plc has, by virtue of the authorization granted by the Annual General Meeting held on 26 March 2018, decided at its meeting held on 8 June 2018 to adopt an option plan “Option Plan 2018” directed to the key persons as decided separately by the Board of Directors. The maximum total number of option rights issued is 400 000, entitling their holders to subscribe for a maximum of 400 000 new shares of the Company or existing shares held by the Company, corresponding to 3,21 percent of all Company shares and votes after a potential subscription if executed with only new shares. Option rights will be granted without payment. The Board of Directors decides on the distribution of option rights until the beginning of the share subscription period. The share subscription period begins on 1 June 2021 and ends on 31 May 2024. The share subscription price is 7,02 euros, which is the trade volume-weighted average price of the Company’s share on First North Finland marketplace during 1 March–31 May 2018 with an addition of 10 percent. The Board of Directors have allocated 319 250 option rights until the end of the period under review, and 80 750 option rights remain for the Company to allocate at a later time to key persons decided by the Board of Directors.
Risks and uncertainties
The most substantial short-term risks and uncertainties are:
- The Company’s in-house game development may fail, and the Company might not necessarily be able to realize the games it has planned with the sufficient quality, schedule or budget.
- Games developed by the Company may fail commercially after their release.
- There is no certainty of the continuity of the Company’s major publisher partnerships and the Company’s publisher partners may present claims towards the Company.
- The Company might not be able to recruit or retain key employees and professionally skilled employees.
- Changes in foreign exchange rates may have a negative impact on the Company’s foreign currency-denominated receivables from its customers.
The above-mentioned risks might, if they materialize, have a significant negative impact on the Company’s business operations, result, financial position, outlook and share price.
Events after the end of the reporting period
The Board of Directors of Remedy Entertainment Plc has, by virtue of the authorization granted by the Annual General Meeting held on 8 April 2019, decided at its meeting held on 11 July 2019 to adopt an option plan “Option Plan 2019” directed to the key persons as decided separately by the Board of Directors. The maximum total number of option rights issued is 400 000, entitling their holders to subscribe for a maximum of 400 000 new shares of the Company or existing shares held by the Company, corresponding to 3,21 percent of all Company shares and votes after a potential subscription if executed with only new shares. Option rights will be granted without payment. The Board of Directors decides on the distribution of option rights until the beginning of the share subscription period. The share subscription period begins on 1 June 2022 and ends on 31 May 2025. The share subscription price is 9,23 euros, which is the trade volume-weighted average price of the Company’s share on First North Finland marketplace during 1 April–30 June 2019 with an addition of 10 percent. As the “Option Plan 2019” was adopted only after the end of the reporting period, no allocations exist for this program by the end of the reporting period.
The option plans are part of the Board of Directors’ longer term plan to introduce a long-term share-based incentive program to the Company’s key persons during 2018–2020, corresponding a total of 10 percent of all Company shares and votes after a potential subscription.
Potential option plan for 2020 will be decided separately.
Change of accounting principles as of 1 January 2019
The Board of Directors made a decision to capitalize product development expenses for new projects that are based on the Company’s own game brands, effective from 1 January 2019. These projects were Vanguard and third not yet announced project during the reporting period. Product development expenses for other projects were not capitalized. The Company will from 1 January 2019 onwards capitalize product development expenses for all new product development projects, subject to FAS product capitalization rules.
Accounting principles applied in the half-year review
The financial statements release has been prepared in accordance with good accounting practice and Finnish legislation. The information has been presented to the extent required by item 4.4 (e) of the First North rules. The disclosed figures have been rounded up from the accurate figures.
The half-year figures disclosed in the financial statements release are unaudited. The full-year figures disclosed in the financial statements release are audited.
Income statement (FAS)
| 1.1.–30.6. 2019 |
1.1.–30.6. 2018 |
1.1.–31.12. 2018 |
1.1.–31.12. 2017 |
|||
| Income statement | ||||||
| REVENUE | 13 799 198 | 9 224 394 | 20 146 402 | 17 167 957 | ||
| Production for own use / Capitalization | 445 449 | |||||
| Other operating income | 180 334 | 223 695 | 248 816 | 1 074 816 | ||
| Materials and services | -1 747 261 | -1 403 310 | -2 556 595 | -2 668 725 | ||
| GROSS PROFIT | 12 677 719 | 8 044 779 | 17 838 623 | 15 574 048 | ||
| Personnel expenses | -8 435 770 | -5 797 061 | -11 677 169 | -9 797 092 | ||
| Wages and salaries | -6 891 995 | -4 778 617 | -9 686 247 | -8 059 184 | ||
| Social security expenses | -1 543 775 | -1 018 443 | -1 990 922 | -1 737 908 | ||
| Depreciation and impairment | -393 065 | -140 692 | -492 702 | -201 846 | ||
| Depreciation according to plan | -393 065 | -140 692 | -492 702 | -201 846 | ||
| Other operating expenses | -2 387 737 | -2 495 154 | -5 059 484 | -3 569 071 | ||
| OPERATING PROFIT (LOSS) | 1 461 147 | -388 128 | 609 268 | 2 006 039 | ||
| Financial income and expenses | 4 625 | 39 909 | 61 517 | -168 730 | ||
| Other interest income and other financial income | 36 521 | 152 721 | 199 605 | 25 120 | ||
| Interest and other financial expenses | -31 896 | -112 812 | -138 088 | -193 850 | ||
| PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES | 1 465 772 | -348 219 | 670 785 | 1 837 309 | ||
| Income taxes | -296 132 | 3 | -138 617 | -367 970 | ||
| Taxes for the financial year and previous financial years | -296 132 | 3 | -138 617 | -367 970 | ||
| PROFIT (LOSS) FOR THE FINANCIAL YEAR | 1 169 640 | -348 216 | 532 169 | 1 469 339 | ||
Balance sheet (FAS)
| BALANCE SHEET | 30.6.2019 | 30.6.2018 | 31.12.2018 | 31.12.2017 |
| NON-CURRENT ASSETS | 3 372 127 | 2 375 131 | 2 968 534 | 451 664 |
| Product development expenses | 445 449 | |||
| Other intangible assets | 1 488 091 | 1 462 711 | 1 670 834 | |
| Tangible assets | 1 438 586 | 912 421 | 1 297 700 | 451 664 |
| CURRENT ASSETS | 27 059 780 | 24 955 082 | 25 292 926 | 26 200 441 |
| Non-current receivables | 446 848 | 536 425 | 445 029 | 512 527 |
| Loans receivable | 6 440 | 10 992 | 6 347 | 12 393 |
| Other debtors | 440 409 | 525 433 | 438 682 | 500 134 |
| Current receivables | 5 655 785 | 7 248 516 | 1 819 850 | 3 099 265 |
| Trade receivables | 4 358 259 | 6 722 872 | 875 345 | 2 465 637 |
| Loan receivables | 55 000 | |||
| Other receivables | 275 238 | 61 127 | 319 202 | 192 776 |
| Prepayments and accrued income | 967 288 | 464 517 | 625 303 | 440 852 |
| Cash in hand and at banks | 20 957 147 | 17 170 142 | 23 028 047 | 22 588 649 |
| TOTAL ASSETS | 30 431 906 | 27 330 214 | 28 261 460 | 26 652 105 |
| SHAREHOLDERS’ EQUITY | 22 314 575 | 21 471 765 | 22 352 150 | 21 819 981 |
| Share capital | 80 000 | 80 000 | 80 000 | 80 000 |
| Share premium account | 38 005 | 38 005 | 38 005 | 38 005 |
| Other reserves (ltd) | 13 747 629 | 13 747 629 | 13 747 629 | 13 747 629 |
| Retained earnings (losses) | 7 279 300 | 7 954 347 | 7 954 347 | 6 485 007 |
| Profit (loss) for the financial year | 1 169 640 | -348 216 | 532 169 | 1 469 339 |
| LIABILITIES | 8 117 332 | 5 858 449 | 5 909 310 | 4 832 124 |
| Non-current liabilities | 2 939 200 | 2 939 200 | 2 939 200 | 1 894 579 |
| Loans from financial institutions | 2 939 200 | 2 939 200 | 2 939 200 | 1 894 579 |
| Current liabilities | 5 178 132 | 2 919 249 | 2 970 110 | 2 937 545 |
| Trade liabilities | 1 404 023 | 629 925 | 689 399 | 431 286 |
| Other liabilities | 113 123 | 45 951 | 250 359 | 228 102 |
| Accruals | 3 660 985 | 2 243 373 | 2 030 352 | 2 278 157 |
| TOTAL EQUITY AND LIABILITIES | 30 431 906 | 27 330 214 | 28 261 460 | 26 652 105 |
Cash flow statement (FAS)
| CASH FLOW STATEMENT | 1.1.–30.6.2019 | 1.1. –30.6.2018 | 1.1. –31.12.2018 | 1.1. –31.12.2017 |
| Cash flow from business operations | -11 935 | -4 400 370 | 2 398 303 | -2 221 083 |
| Cash flow from investments | -851 658 | -2 064 159 | -3 009 572 | -278 910 |
| Cash flow from financing | -1 207 308 | 1 046 022 | 1 050 667 | 14 740 293 |
| Liquid assets – opening balance | 23 028 047 | 22 588 649 | 22 588 649 | 10 348 348 |
| Change in liquid assets | -2 070 900 | -5 418 507 | 439 399 | 12 240 300 |
| Liquid assets – closing balance | 20 957 147 | 17 170 142 | 23 028 047 | 22 588 649 |
Statement of changes in shareholders’ equity (FAS)
| Changes in shareholders’ equity 1.1.–30.6.2019 | Share capital | Share premium account | Invested unrestricted equity fund | Retained earnings | Profit for the financial year | SHAREHOLDERS’ EQUITY TOTAL |
| Opening balance 1.1.2019 | 80 000 | 38 005 | 13 747 629 | 8 486 516 | 0 | 22 352 150 |
| Increase in share capital | ||||||
| Share issue and other share subscriptions | ||||||
| Dividend | -1 207 215 | |||||
| Amount paid for own shares | ||||||
| Profit/loss for the period under review | 1 169 640 | |||||
| SHAREHOLDERS’ EQUITY 30.6.2019 | 80 000 | 38 005 | 13 747 629 | 7 279 301 | 1 169 640 | 22 314 575 |
| Changes in shareholders’ equity 1.1.–30.6.2018 | Share capital | Share premium account | Invested unrestricted equity fund | Retained earnings | Profit for the financial year | SHAREHOLDERS’ EQUITY TOTAL |
| Opening balance 1.1.2018 | 80 000 | 38 005 | 13 747 629 | 7 954 347 | 0 | 21 819 981 |
| Increase in share capital | ||||||
| Share issue and other share subscriptions | ||||||
| Dividend | ||||||
| Amount paid for own shares | ||||||
| Profit/loss for the period under review | -348 216 | |||||
| SHAREHOLDERS’ EQUITY 30.6.2018 | 80 000 | 38 005 | 13 747 629 | 7 954 347 | -348 216 | 21 471 765 |
| Changes in shareholders’ equity 1.1.–31.12.2018 | Share capital | Share premium account | Invested unrestricted equity fund | Retained earnings | Profit for the financial year | SHAREHOLDERS’ EQUITY TOTAL |
| Opening balance 1.1.2018 | 80 000 | 38 005 | 13 747 629 | 7 954 347 | 0 | 21 819 981 |
| Increase in share capital | ||||||
| Share issue and other share subscriptions | ||||||
| Dividend | ||||||
| Amount paid for own shares | ||||||
| Profit/loss for the period under review | 532 169 | |||||
| SHAREHOLDERS’ EQUITY 31.12.2018 | 80 000 | 38 005 | 13 747 629 | 7 954 347 | 532 169 | 22 352 150 |
Items affecting comparability of EBIT
| 1.1.–30.6.2019 | 1.1.–30.6.2018 | |||
| EBIT for the reporting period | 1 461 147 | -388 128 | ||
| Product development capitalization effect | 445 449 | 0 | ||
| Effect of one-time retroactive royalty income | 2 470 626 | 0 | ||
| Comparable EBIT | -1 454 928 | -388 128 | ||
Major shareholders 30 June 2019
| NAME | SHARES | PERCENTAGE | |
| 1. | Mäki Markus Heimo Tapio | 3 447 000 | 28,6 % |
| 2. | Järvi Sami Antero | 610 000 | 5,1 % |
| 3. | Virtala Tero Tapani | 370 000 | 3,1 % |
| 4. | Lehtinen Saku Hermanni | 273 500 | 2,3 % |
| 5. | Sr Taaleritehdas Mikro Markka | 266 075 | 2,2 % |
| 6. | Reini Mika Olavi | 260 000 | 2,2 % |
| 7. | Tolsa Tero Sakari Anttoni | 204 000 | 1,7 % |
| 8. | Hyytiäinen Anssi Kalervo | 178 306 | 1,5 % |
| 9. | Blåfield Henri Erik | 125 000 | 1,0 % |
| 10. | Sihvo Timo Matti | 114 000 | 0,9 % |
| 10 largest shareholders total | 5 847 881 | 48,4 % | |
| Accendo Capital SICAV, SIF (nominee registered) | 2 680 187 | 22,2 % | |
| Other nominee registered | 298 372 | 2,5 % | |
| Other shares | 3 245 710 | 26,9 % | |
| Total | 12 072 150 | 100,0 % |
Espoo, August 13, 2019
Remedy Entertainment Plc
Board of Directors
More information
Tero Virtala, Chief Executive Officer
Phone: 09 435 5040
Email: [email protected]
Lauri Haavisto, Senior Manager, Investor & Talent Relations
Phone: 09 435 5040
Email: [email protected]
Alexander Corporate Finance Oy, Certified Adviser
Phone: 050 520 4098
Remedy in brief
Remedy Entertainment Plc is a globally successful video game company known for story-driven and visually stunning console and computer games such as Alan Wake and Max Payne. Founded and based in 1995, Finland, the company employs over 200 game industry professionals from 25 different countries. Remedy is listed on the Nasdaq First North marketplace.
Our latest games include Control, a supernatural action-adventure created by Remedy and to be published by 505 Games on August 27th 2019 on PlayStation 4, Xbox One and PC, as well as a cooperation project with Smilegate based on Crossfire, which is one of the world’s biggest game brands. Remedy also develops its own Northlight game engine and game development tools.
DISTRIBUTION
Nasdaq Helsinki Ltd
Key media
www.remedygames.com
Attachment
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: REMEDY ENTERTAINMENT PLC: Half-year review 1.1.-30.6.2019
At EvenBet Gaming, we see firsthand how the marketing landscape is changing. Insights from our iGaming Future 2026 report show that in 2025, success comes from connection, not noise.
As regulations tighten, acquisition costs rise, and audiences scatter across platforms, the brands that win are those that blend precision with personality. Today’s players and partners expect authenticity over aggression and storytelling over sales pitches. Campaigns are no longer about mass impressions but about micro-moments – tailored, data-driven interactions that feel personal, even at scale.
The winners listen first, analyze second, and act third – turning insight into engagement. In this landscape, connection is the foundation of sustainable growth.
The Split Game: B2B vs. B2C
In B2B, the battleground is trust. CEOs and decision-makers are drowning in noise – from events to endless newsletters. What cuts through? Case studies that show ROI, product demos that feel real, and personal networks built at ICE or SiGMA. Social media remains the undisputed king here: 49% of iGaming executives use it as their primary info source, followed by in-person networking and industry events. Long-form content still works – when it’s insightful, not promotional. To stand out in B2B marketing, brands should focus on:
- Building thought leadership through expert commentary and research-backed insights that prove credibility;
- Nurturing long-term relationships via community-led webinars, roundtables, and co-marketing projects that drive collaboration;
- Leveraging data storytelling – turning complex metrics into simple, visual narratives that help decision-makers act fast.
B2C, by contrast, is all about emotion and immediacy – but with a sharper distinction between markets and business models. The latest EvenBet Gaming Social Media Report shows that while short-form and community-driven content remains key, the dominance of platforms differs markedly. In Europe – LinkedIn leads the way as a professional and networking hub, reflecting a B2B-oriented focus on authority building, lead generation, and industry-specific engagement. In Asia – Facebook and Instagram dominate, highlighting a strategy centered on community connection, targeted advertising, and broad audience engagement, with Telegram also playing a significant role. For B2C operators – visual storytelling and entertainment-led platforms such as Instagram, Facebook, and TikTok continue to drive emotional engagement, while for B2B providers – LinkedIn holds an undisputed lead, supported by Instagram and Telegram as complementary channels. The formula, therefore, is not simply to be social-first, but to be strategically social – prioritizing community and visual impact in B2C, and credibility and professional engagement in B2B.
AI and Automation – The New Marketers
According to EvenBet’s iGaming Future 2026 report, AI has moved from buzzword to backbone – redefining how brands attract, convert, and retain players. Predictive analytics now segment audiences before login, while machine learning powers adaptive CRM systems that personalize offers and retention bonuses in real time. In marketing operations, AI delivers measurable impact through:
- Dynamic pricing and bonus optimization – adjusting rewards by player value and engagement;
- Content intelligence – automating localization and campaign creation, cutting production time by up to 60%;
- Ad fraud prevention – identifying fake traffic before it drains budgets;
- Predictive churn analysis – triggering personalized retention actions;
- Voice and visual recognition – tracking live reactions and sentiment to optimize creative on the fly.
In B2B, AI turns marketing from broadcast to conversation – analyzing partner behavior, flagging high-value leads, and automating follow-ups. The brands that master real-time data interpretation lead the race. In iGaming, AI doesn’t just predict behavior – it shapes it.
Social Channels – The Real Arena
Social platforms have evolved far beyond advertising spaces. They’ve become the central nervous system of iGaming marketing. In 2025, social media is a living ecosystem where customer acquisition, brand positioning, community building, and market research all merge. Every platform has its rhythm and audience psychology; successful brands know how to play them like instruments in the same orchestra.
Whether a B2B partnership or a B2C retention campaign, the rule is simple: go where your audience lives, speak their language, and deliver value before the pitch. How each key platform shapes the iGaming marketing mix? Read here.
LinkedIn – the B2B Heartbeat
This is where credibility is built and deals are born. For iGaming providers, affiliates, and tech companies, LinkedIn serves as the top channel for partnerships, thought leadership, and lead generation. Sharing industry insights, case studies, and event takeaways reinforces authority and keeps brands visible among decision-makers. Paid targeting tools also allow for pinpoint precision, ensuring that every ad or article reaches the right vertical – from operators to regulators.
YouTube & Twitch – Where Entertainment Meets Education
As highlighted in EvenBet’s iGaming Future 2026 report, streaming has become a key growth channel for iGaming brands. YouTube anchors long-form storytelling – developer insights, product demos, and CEO interviews that build credibility. According to the EvenBet Gaming Social Media Report, YouTube accounts for 14% in Europe and 15% in Asia, showing near-equal relevance across regions and reinforcing its universal value for both markets.
Twitch, mentioned in iGaming Future 2026 alongside YouTube Live and Kick, plays a pivotal role in real-time engagement – driving live gameplay, poker tournaments, and influencer collaborations that enhance transparency and community connection. While no percentage data is provided for Twitch, the report emphasizes streaming as a natural fit for gambling content and audience interaction.
Together, these platforms turn audiences into participants – transforming content from promotion into experience.
TikTok & Instagram – Short, Raw, and Honest
Authenticity wins here. These platforms thrive on short-form, story-driven content that prioritizes emotion over polish. According to the EvenBet Gaming Social Media Report (p. 58), Instagram ranks second in both regions – 22% in Europe and 20% in Asia – while TikTok shows stronger traction in Asia (9%) than in Europe (5%), underscoring its growing influence among younger, mobile-first audiences.
Behind-the-scenes clips, quick tips, and relatable humor consistently outperform corporate messaging. Interactive ad formats like reels and hashtag challenges help iGaming brands spark viral loops, amplify influencer reach, and turn curiosity into action.
In a mobile-first world, these platforms don’t just advertise – they convert. The brands that master them know one truth: social is the marketplace, the focus group, and the loyalty engine all at once.
Customer Access and Personalization
Today’s players expect the brand to recognize them before signing in. The data backs it up: operators using personalized onboarding see up to 37% higher retention. Hybrid campaigns – connecting online and live play – are rising fast. A push notification might lead to an app bonus, unlocking a live event seat. That seamless loop is where loyalty lives. For iGaming operators, personalization now stretches far beyond “Hello, [Name]”:
- Behavioral segmentation uses AI to analyze time-of-day habits, game preferences, and betting velocity – letting brands tailor every interaction, from welcome bonuses to tournament invites;
- Cross-channel identity mapping ensures players get a consistent experience across web, app, email, and live venues – no duplicate offers, no irrelevant messages;
- Progressive profiling builds player personas gradually through engagement, balancing data collection with trust. This creates a 360° view without overwhelming the user with long forms;
- Experience-based incentives are replacing static bonuses. For example, completing a “10-hand challenge” online could unlock real-world prizes or exclusive event tickets.
What Next?
As highlighted in EvenBet’s iGaming Future 2026 report, the next phase of iGaming marketing – especially in B2B – is built on access, insight, and shared growth. Partners no longer want to be sold to; they want to collaborate, learn, and co-create. Loyalty now comes from ecosystems of mutual value, not discounts or outreach volume. Next-gen B2B engagement revolves around:
- Micro-communities on Slack, Discord, or LinkedIn – invite-only spaces where suppliers, affiliates, and operators exchange insights and form strategic alliances;
- Account-based marketing (ABM) powered by AI – integrating CRM and social data to tailor outreach, improving conversion rates by up to 50%;
- Virtual demos and co-branded webinars – frictionless entry points for collaboration that combine live interaction with analytics-driven follow-up;
- Shared data dashboards – transparency as the new trust currency, providing partners with real-time access to KPIs and campaign metrics.
In both B2C and B2B, the rule holds: the closer you get to your audience or partner, the harder it is for them to leave.
Innovation: Beyond Buzzwords
Gamification has become the universal language of engagement – missions, badges, leaderboards, loyalty loops. AI adds the adaptive layer; players evolve in real time. This same logic applies in marketing: adaptive storytelling that shifts with user behavior. The future? Predictive personalization. The line between “targeting” and “understanding” is getting thinner, and the best marketers are crossing it first. The new generation of gamified marketing goes beyond points and badges – it builds ecosystems of continuous engagement:
| Category | Tool / Mechanism | Description & Benefits |
| B2C (Players) | Dynamic Missions | AI-driven missions that adapt to player behavior in real time – e.g., switching from “daily spins” to “multi-table hands” based on user habits. Keeps engagement personal and relevant. |
| Reward Tiers & Progression Paths | Data-driven systems that reward consistency, not just spend. Players advance through experience-based milestones, improving long-term retention. | |
| Social Competition | Leaderboards, team missions, and community milestones create peer motivation. Increases engagement by up to 40% vs. solo play. | |
| Narrative Gamification | Marketing campaigns unfold as storylines – every message or promo feels like a new chapter in the player’s journey. Builds emotional attachment. | |
| AR & VR Integration | Combines real-world activity (QR scans, event participation) with digital rewards, creating immersive cross-channel brand experiences. | |
| Predictive Personalization | AI anticipates player mood and intent, adapting visuals, tone, and offers before behavior shifts. Moves from reactive to proactive marketing. | |
| B2B (Partners) | Partner Scoreboards | Tracks campaign performance – traffic, conversion, retention. Encourages friendly competition and higher partner productivity. |
| Gamified Learning Platforms | Turns product training and onboarding into missions, quizzes, and leaderboards. Boosts learning retention and team motivation. | |
| Incentive Ecosystems | Partners earn tiered rewards – access to beta tools, co-marketing funds, or exclusive insights – based on measurable performance metrics. | |
| Community Challenges | Affiliates or resellers compete in group KPIs (e.g., “Top Q3 Converters”). Builds engagement and shared achievement culture. | |
| AI Engagement Analytics | AI monitors partner engagement levels, offering personalized feedback, goal suggestions, and reward triggers automatically. |
Ultimately, gamification in iGaming marketing has shifted from “adding fun” to engineering motivation. It’s about designing systems where engagement becomes the most natural move. When rewards, progress, and storytelling align seamlessly with user behavior, participation stops feeling like marketing and starts feeling like entertainment. The brands that master this balance turn every interaction into a self-sustaining loop of curiosity, reward, and loyalty – where players don’t just play the game, they live inside it.
Final Hand
In 2025, iGaming marketing is a blend of human intuition and machine precision. The era of mass messaging is over – success now means balancing data with emotion and automation with authenticity. In B2B, growth comes from trust, transparency, and measurable ROI rather than lead volume. In B2C, players expect instant personalization, dynamic engagement, and brands that speak their language – making AI-driven personalization and social-first storytelling essentials, not extras.
The strongest brands will merge both worlds, using AI to amplify empathy and data to sharpen creativity. In a market flooded with content, relevance is survival – and trust is the true currency of differentiation.
Reading Time: < 1 minute
This Halloween season, GR8 Tech dares the iGaming world to face its darkest fears. The company has launched an interactive campaign titled “What Scares Operators Most?”, inviting operators to explore the challenges that haunt their daily operations—and to discover how the right solution can turn those fears into fuel for growth.
The mysterious, immersive journey highlights iGaming’s most chilling pain points, and each revealed fear leads to actionable insights and practical solutions, guiding operators toward the tools and strategies that keep their businesses bulletproof, no matter what monsters lurk in the data.
“Fear is a powerful teacher,” said Yevhen Krazhan, CSO at GR8 Tech. “Every operator faces moments that test their systems and their strategy. Our Halloween campaign acknowledges those fears and shows that with the right partner, they’re entirely conquerable.”
On the GR8 Tech website, visitors can flip cards, uncover their personalized iGaming “fear,” access GR8 Tech’s expert take on how to overcome it, and view materials that discuss the problem in more detail. They can also share their results or book a meeting to discuss real-world solutions.
Operators brave enough to fight their fears are encouraged to continue the conversation in person at SiGMA Central Europe 2025, Booth 5028. Because in the world of iGaming, even the scariest nightmares can turn into winning stories.
The post GR8 Tech Challenges Operators to Face Their Fears This Halloween appeared first on European Gaming Industry News.
Reading Time: 5 minutes
Here are this weeks latest slots releases compiled by European Gaming
Relax Gaming is opening the hatch to Frank’s Diner, an apocalyptic slot where Split Symbols, reel multipliers, and Gold Wild re-spins deliver the potential for sizzling wins. Split Symbols take centre stage, with two or three identical single symbols landing on the same reel, forming double or triple stacks that immediately multiply the number of ways to win.
BC.GAME has released Tim & Larry, a new in-house developed slot combining traditional video slot mechanics with a cartoon-inspired theme centered around a kitchen standoff between a cat and a mouse. The game features high volatility, a theoretical RTP of 96.91%, and a capped maximum payout of 15,000× the base bet.
Inspired Entertainment, Inc., is excited to announce the launch of Werewolf It Up! featuring Cash Bank and Zeus Legends of Olympus featuring Triple Hit Combo across the UK and Malta iGaming markets. Packed with captivating visuals and engaging gameplay, this online and mobile slot duo is designed to deliver strong results for operators and offers the best in iGaming entertainment for players.
TaDa Gaming invites players to spin for royal rewards in Crown of Fortune, a vibrant 5×3 slot featuring expanding Wilds, locking respins and dazzling payout potential of up to 1000x the bet. Blending nostalgic fruit slot charm with polished, modern mechanics, Crown of Fortune captures the timeless allure of classic gameplay—enhanced by Wild-driven action.
SlotMatrix has launched its latest exclusive title, Aphrodite’s Fortune, an enchanting slot that invites players into the goddess’s golden garden of love and wealth. Set among the clouds of Mount Olympus, Aphrodite’s Fortune celebrates beauty, fortune, and celestial power in a stunning 10,000-ways-to-win format.
Have you got what it takes to take on the Prize Ladder and come out on top? That’s the question players must answer before taking on the latest classic slot title from in-demand content house, Northern Lights Gaming. Bright lights and big wins are the order of the day in Prize Ladder, a game-show style blockbuster that promises twists and turns from the very first game round to the last.
Gaming Corps is preparing to enchant players this October with the launch of its latest slot, 3 Pots of Potions. Arriving just ahead of Halloween, the high-volatility release combines imaginative design with feature-rich gameplay and the potential to conjure wins of up to 10,000x the stake.
Get ready for a spine-tingling splash with Fish Tales: Halloween from Booming Games! This spooky twist on the beloved Fish Tales: Monster Bass takes you to a haunted underwater world where ghoulish fish and creepy cash prizes await. The beloved spook-tacular mechanics remain intact, but with an eerie makeover—fog-drenched waters, zombified fish, and a fang-tastic new design.
Evoplay has released Young Buffalo Coins, the second instalment in its popular Young Buffalo series. Following the success of the original title, the new game takes players back to the wild prairies for another action-packed adventure, combining fast-paced gameplay, sticky coins, and big jackpot opportunities.
Online casino operators can give their players the fright of their lives with Midnight Queen, the latest slot launch from in-demand iGaming content provider, ICONIC21. Midnight Queen is a Vampire-themed slot that’s perfect for entertaining players during the Halloween season and beyond.
TaDa Gaming has returned to the savannah with intriguing new release Golden Explorer. A rich trove of multiplier gemstones sparkling with additional random multiplier bonuses can burst on to the screen, enhancing the win potential and delivering vivid and exciting gameplay for 96.99% and a max win of 30,000x.
To celebrate the launch of Reactoonz 100, Play’n GO’s iconic slot character Garga reached a max altitude of 37,753 metres (117,300 ft) in a two-hour flight to set a world record and become the first slot character ever in space. Play’n GO, the world’s leading casino entertainment provider, has today announced that one of the most iconic characters in slots, Garga, has set a world record by becoming the first slot character in space.
Tom Horn Gaming is expanding its portfolio with the release of 243 Zeus Fruits, a slot that combines two proven player favourites – fruit slots and Greek mythology. The game delivers short feature cycles, multipliers, and higher stakes through the supplier’s QuickX mechanic.
Amusnet invites players into a realm of mystery and midnight thrills with Vampire Dice, its latest Online Casino portfolio addition. This captivating dice-themed game combines gothic elegance, thrilling features and an immersive atmosphere where every roll reveals secrets of the night.
SlotMatrix has embraced the Halloween spirit with its latest exclusive release, Ghost Pigger. Combining high energy rhythm and rewarding gameplay in a disco-fuelled haunted house, Ghost Pigger makes for a truly unique slot experience. The 96.09% RTP, medium volatility, and maximum win potential of up to 13,712x keep the players engaged.
The post Week 43/2025 slot games releases appeared first on European Gaming Industry News.
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