Games

Remedy makes 7.2 million write-off as it seeks publisher

Today, Remedy announced financial decisions leading to the recognition of an impairment charge of EUR 7.2 million for Q4 and the fiscal year 2023 results. This charge is attributed to a write-off associated with the reboot of its project, codenamed Kestrel, in partnership with Tencent.

Remedy amended a contract with Tencent for the project codenamed Kestrel, which effectively resets the project. Little is known about the project, but it is considered a premium game with a strong, cooperative multiplayer component.

Remedy seeking a publisher for its cooperative multiplayer project codenamed Vanguard

Preliminary, unaudited financial results show that Remedy’s revenue decreased to EUR 33.9 million in 2023 from EUR 43.6 million the previous year. These figures suggest a significant downturn in profitability, impacted by the impairment charge and possibly other factors.

”We made meaningful investments in 2023 and created a stronger basis for profitable long-term growth. After the restart, Kestrel is better aligned with our core strengths and creative vision of the Remedy Connected Universe”, said Tero Virtala, CEO of Remedy Entertainment.

A notable detail from the brief financial report is the postponement of the 2023 Financial Statements Bulletin, originally scheduled for February 9th, to March 20th. This delay is due to ongoing contract negotiations concerning a publishing agreement for Project Vanguard.

“The rescheduling relates to ongoing contract negotiations regarding a publishing agreement. The previously scheduled publication date for the Financial Statements Bulletin was Friday, February 9, 2024.” read a claim on the report that was emailed to GameWatcher.

“The contract negotiations regarding a publishing agreement are another determined step towards our long-term objectives in accordance with our strategy”, concluded Virtala.

We should hopefully find out who’s publishing this project and learn more about it by the 20th of March.

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