H1-2019 Financial Review
Total Page:16
File Type:pdf, Size:1020Kb
H1-2019 financial review 13.8.2019 agenda 1 Review of H1-2019 2 Financial results of H1-2019 3 Outlook for H2-2019 4 Questions & answers Tero Virtala Terhi Kauppi CEO CFO Send us questions Twitter @RemedyIR Twitch.tv/ RemedyIR Email [email protected] agenda 1 Review of H1-2019 2 Financial results of H1-2019 3 Outlook for H2-2019 4 Questions & answers H1-2019 highlights • Revenue 13.8 million euros (+49.6%). • EBIT 1.5 million euros, 10.6% of revenue. • New project product development costs capitalized since 1.1.2019. Positive effect of 445 thousand euros on operating profit. • Operating profit positively affected by the one-time royalty booking of 2.5 million euros, consisting of royalty payments from previously released games. • In relation to this, the publishing rights of Alan Wake games were reverted to Remedy. control • The game is in final stage of development and getting ready to be released on 27 August on PlayStation 4, Xbox One and PC. • Remedy-owned IP. Revenues based on development payments from the publisher and share of game sales revenue. • The focus of the last development phase has been on fine-tuning the game and preparing for post-launch activities. • Control receives marketing support from PlayStation, the Epic Games Store and NVIDIA. • The game has gained visibility, interest and accolades. Reception has been positive. crossfire • Remedy is working on a second Crossfire project with Smilegate. Project proceeds according to plans. • Remedy revenues based on development payments from the publisher and potential royalties. • Crossfire distribution, marketing and communications handled by Smilegate. • Closed beta phase in China for a remaster of the original game titled Crossfire HD, which will include Remedy’s single player campaign. • Microsoft and Smilegate announced at E3 2019 that CrossfireX will launch on Xbox One during 2020. The game also includes our single player campaign. Other game projects Unannounced 3rd project Vanguard • Based on our strategy of developing • Objective to create a long-lasting service- longer-lasting games and franchises. based multiplayer game combined with selected Remedy strengths. • Currently in concept and design phase, including related team building. • The project is proceeding from concept and prototyping phase to preproduction, • Early negotiations with business partners are ongoing. which also means selectively growing the team size. • We’re not in a hurry to sign any deals due to our financially strong position and focus to retain business control of our games. Talented & motivated personnel 220 full-time employees 30.6.2019 53 % +34 % Finnish employees year-on-year growth 47 % 236 26 nationalities headcount 13.8.2019 Attracting & engaging talent • Team-building efforts continued with our systematic recruitment process. • 1600 applications received, 41 job offers sent, 32 offers accepted during H1-2019. • Peakon score 8,5 out of 0-10 (previously 8,3). Remedy is benchmarked against other similar-sized tech companies globally and we perform above the benchmark • Employee Engagement tool also used for gathering feedback, which helps our employees, supervisors and teams improve. Early 2017 new strategy was set: transformation 2. Scalability via multi-project model to enable future growth 1. Games that stand out in the market and expand into long-term franchises 3. Stronger position in the value chain • Worlds, characters, stories + action • Towards longer-lasting gameplay and new storytelling techniques. 2017-2018: building basis for future growth By early 2019, we had successfully built the strategic pillars we had aimed for. 3rd project 2015 2016 2017 2018 H1-2019 2019: updated Strategic pillars …that guide us for the next 2-3 years. 1 2 3 4 Longer-lasting games Strong business Professionally Empowered in engaging worlds. ownership managed teams and people. of our games. game development. executive team Tero Virtala Terhi Kauppi Markus Mäki Sami Järvi CEO CFO CTO, Chairman of Board CREATIVE DIRECTOR Mikaela Öberg-Mattila Johannes Paloheimo Christopher Schmitz HR DIRECTOR CHIEF COMMERCIAL OFFICER CHIEF OPERATING OFFICER agenda 1 Review of H1-2019 2 Financial results of H1-2019 3 Outlook for H2-2019 4 Questions & answers Key figures FAS, unaudited H1-2019 H1-2018 FY-2018 * FY-2017 * Revenue M€ Revenue, 1 000 € 13 799 9 224 20 146 17 168 Revenue growth, % 49,6 % 11,1 % 17,3 % 4,6 % EBIT, 1 000 € 1 461 -388 609 2 006 13.8 10,6 % -4,2 % 3,0 % 11,7 % % of revenue 49,6 % Result for review period, 1 000 € 1 170 -348 532 1 469 growth % of revenue 8,5 % -3,8 % 2,6 % 8,6 % Average headcount during review period 213 158 169 139 Result per share, € 0,097 -0,029 0,044 0,122 EBIT M€ 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 1.5 Net gearing, % -80,7 % -66,3 % -89,9 % -94,8 % 10,6 % of Equity ratio, % 73,3% 78,6 % 79,1 % 81,9 % revenue * Audited Financial development 25 25% 24,1 % Revenue (M€) EBIT % 20,1 20 20% 18,9 % 17,2 16,4 15,5 15 13,7 13,8 15% 11,9 10,5 11,7 % 10,6 % 10 9,8 % 10% 4,7 6,1 % 5 3,8 4,7 % 5% 3,0 % 2,4 % 1,7 % 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1-2019 Ebit analysis Net sales Staff expenses 16000 9000 14000 Revenue mainly from two 7000 • 12000 simultaneous game 10000 5000 projects. 8000 3000 6000 • No new game launches 4000 1000 during H1-2019. 1H 2018 1H 2019 1H 2018 1H 2019 • Staff expenses impacted by Other operating costs EBIT increasing headcount. 3000 2000 • EBIT affected by one-time 1500 2500 royalty booking and 1000 capitalization of new 2000 500 Remedy game IP projects. 1500 0 1000 -500 1H 2018 1H 2019 1H 2018 1H 2019 agenda 1 Review of H1-2019 2 Financial results of H1-2019 3 Outlook for H2-2019 4 Questions & answers H1-2019 summary & outlook for h2-2019 • Game projects have proceeded according to our plans. • We have updated our strategy for the • Control set to launch on 27 August 2019. next phase of our development. • Remedy’s single player campaign will • From 2019 onwards, we aim to launch at be included in Crossfire HD and least one game or game expansion CrossfireX. every year. • Third yet unannounced project and • We expect our revenue and EBIT to Vanguard proceed step by step. grow during 2019. • We set ourselves a new strategy in early • Majority of revenue and profitability 2017 and successfully carried out related growth is estimated to materialize transformation and investments while during H2. remaining profitable. agenda 1 Review of H1-2019 2 Financial results of H1-2019 3 Outlook for H2-2019 4 Questions & Answers Thank you!.