Remedy Entertainment (ISIN: 4000251897), developer of multiple “Game of the Year” award winner Control, has signed publishing agreements with a major publisher, Epic Games, for the company’s next two unannounced video games.
The agreements specify that the publisher will fully fund game development costs and that Remedy is entitled to a 50% share of the net revenue from the games’ sales. Remedy also retains the ownership of the games’ intellectual property.
We have been following the fortunes of this stock for some time now and can report that the Remedy Entertainment share price is now up 29% YTD, in the teeth of the global coronavirus crisis.
The first project is an AAA multi-platform game already in pre-production and previously referred to as the “unannounced third project”. The second is a new smaller-scale project set in the same franchise. Both projects are being developed on Remedy’s proprietary Northlight game engine and tools.
Based in Finland, Remedy Entertainment has been around for some time, having been founded in 1995. It is probably best known in the UK, at least among gamers, for its Max Payne video gaming franchise. The company listed in 2017 on the NASDAQ First North Finland Exchange.
The partnership extends Remedy’s strategy of creating and developing its own IP’s into long-term franchises. Both games will be launched on next generation console platforms and PC in the next few years.
Remedy’s financial outlook and guidance remain unchanged. The company estimates its revenue and operating profit to increase during 2020. Majority of the revenue and operating profit growth is expected to materialize during the second half-year period.
We currently like listed online gaming stories like this one. Despite the coronavirus, we feel revenues from ably managed video games developers will actually do well this year, as they are serving the entertainment needs of millions of people forced to spend most of their lives at home.
On top of this, the vast bulk of video gaming content is now being delivered digitally, so is not reliant on any logistical or manufacturing routes that might be disrupted by the coronavirus.
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