Creative

PCF Group Q1 2021 Financial Results Presentation

PCF Group’s financial results for the first quarter of 2021 demonstrate continued growth in revenue and operational scale, driven by ongoing development partnerships and strategic expansion.

• PCF Group reported Q1 2021 revenue of PLN 30.9 million, a 19.1% increase year-on-year driven by development partnerships with Square Enix and Take-Two Interactive.
• Net cash flow surged by 2,390% to PLN 106.1 million, despite a 10.0% decline in net profit to PLN 7.8 million.
• Adjusted EBITDA grew 6.6% year-on-year to reach PLN 10.4 million for the first quarter.

Half-year Directors' Report on the Operations: PCF Group S.A. 2021

PCF Group S.A. pursued an aggressive strategy of global expansion and structural transformation during the first half of 2021.

PCF Group Interim Consolidated Financial Statements: Q3 2021

PCF Group demonstrated robust financial growth during the first nine months of 2021, characterized by a significant increase in revenue to PLN 131.8 million and a net profit of PLN 46.4 million.

Mid-Year Consolidated Report for Period 3 and 9 Months Completed 30 September 2021

PCF Group demonstrated robust financial growth and strategic expansion during the first nine months of 2021, characterized by a significant increase in scale and a transition toward a more diversified business model.

• PCF Group reported a significant financial surge for the first nine months of 2021, with consolidated sales revenue reaching 131.8 million PLN and net profit more than doubling to 46.4 million PLN compared to the prior year.
• The company’s financial position is bolstered by 149.8 million PLN in cash, largely driven by 131.6 million PLN in net proceeds from Series B and D share issuances that increased total equity to 241.6 million PLN.
• Despite the April 2021 launch of Outriders, the Group recorded no royalty income through September 2021 as sales had not yet recouped the publisher's development and promotion costs.

PCF Group Half-Year Report for First Half 2021

During the first half of 2021, PCF Group demonstrated a period of aggressive international expansion and significant financial strengthening.

• PCF Group achieved 77.3 million PLN in sales revenue and 21.7 million PLN in net profit during the first half of 2021, up from 52.6 million PLN in revenue the previous year.
• A Series B share issuance generated over 100 million PLN in net proceeds, increasing total assets to 272.8 million PLN and funding the acquisition of Game On Creative and the launch of PCF Chicago.
• Over 90% of the company's income is derived from work-for-hire production for major publishers like Square Enix and Take-Two Interactive.

Półroczne sprawozdanie zarządu z działalności Grupy kapitałowej PCF Group S.A.: H1 2021

PCF Group S.A. experienced significant corporate expansion and financial growth during the first half of 2021, driven by its transition into a global multi-studio entity.

• PCF Group S.A. grew total assets by 185% to 272.8 million PLN in H1 2021, fueled by a 100.3 million PLN Series B share issuance and North American expansion via Game On Creative Inc. and PCF Chicago.
• Sales revenue increased 47% year-over-year to 77.3 million PLN, though net profit fell 30% to 11.6 million PLN due to higher administrative costs, IPO expenses, and infrastructure investment.
• The company faces significant operational risk from revenue concentration with partners Square Enix and Take-Two, as no royalties were received from the April 2021 launch of Outriders during this period.

Draft Resolutions for the Extraordinary General Meeting: May 24, 2021

PCF Group S.A. is pursuing a strategic expansion of its global development capabilities through a targeted share capital increase and the implementation of flexible financing mechanisms.

• PCF Group S.A. is acquiring Montreal-based animation and motion capture studio Game On Creative, Inc. to bolster its AAA game development pipeline.
• The acquisition will be funded by issuing 387,714 Series D shares at 75.75 PLN per share to Fiducie Familiale Samuel Girardin 2020, requiring a waiver of existing shareholders' pre-emptive rights.
• The company is establishing authorized capital that allows the Management Board to issue nearly 1.5 million new shares over the next three years to facilitate future growth.

Q1 2021 – Omówienie Wyników

The first quarter of 2021 financial performance review for PCF Group S.A. highlights the company’s growth trajectory and operational expansion within the global video game development sector.

• People Can Fly Group reported a 19.1% year-over-year revenue increase to 30.9 million PLN in Q1 2021, with development services accounting for 30.2 million PLN of that total.
• Net cash flow surged by 2,390% to 106.1 million PLN during the quarter, primarily fueled by capital activities and the company's public market presence.
• Net profit declined by 10% to 7.8 million PLN compared to Q1 2020, despite a 6.6% increase in adjusted EBITDA to 10.4 million PLN.

PCF Group Financial Results Presentation: 2020

The PCF Group 2020 financial results presentation outlines the company’s operational and fiscal performance, highlighting a period of significant growth driven by the successful release of the title Outriders.

• PCF Group achieved significant financial growth in 2020, with revenue reaching PLN 103.8 million (a 23.6% increase) and net profit surging 409.1% to PLN 24.6 million.
• Adjusted EBITDA rose by 76.7% to PLN 32.6 million, supported by a 730.5% increase in cash flow from operating activities.
• The company transitioned to a multi-project development model, with development revenue growing 89% through simultaneous work on Project Gemini for Square Enix and Project Dagger for Take-Two Interactive.

Raport Bieżący Nr 15/2021

On April 27, 2021, the Warsaw-based PCF Group S.A. executed an investment agreement to acquire 100% of the shares of Game On Creative, Inc., a Montreal-based studio specializing in animation, motion capture, and audio services.

• PCF Group S.A. acquired 100% of Montreal-based Game On Creative, Inc. for approximately 29.37 million PLN to bolster its AAA game development and cinematic production capabilities.
• The seller, Fiducie familiale Samuel Girardin 2020, will reinvest the entire 29.37 million PLN proceeds into 387,714 new Series D shares of PCF Group S.A. at 75.75 PLN per share, representing a 1.29% stake.
• Game On founder Samuel Girardin will join PCF Group as Studio Head and President of People Can Fly Canada, Inc. while retaining his leadership role at Game On.

Current Report No. 14/2021

This regulatory report, issued on April 27, 2021, details the acquisition of Game On Creative, Inc. by PCF Group S.A. (People Can Fly).

• PCF Group S.A. acquired 100% of Montreal-based creative agency Game On Creative, Inc. to bolster its North American motion capture, cinematic, and audio production capabilities.
• The purchase price is valued at eight times Game On’s 2020 EBITDA, subject to adjustments for debt, working capital, and leakage.
• The transaction is primarily financed through a private subscription of PCF Group Series D shares issued to the seller’s trust, SG Trust.

Opinion of the Management Board of PCF Group S.A. on Denying Shareholders Rights to Series D Shares (27 April 2021)

The Management Board of PCF Group S.A. issued this formal opinion on April 27, 2021, to justify the exclusion of existing shareholders' preemptive rights regarding the issuance of 387,714 Series D shares.

• PCF Group S.A. issued 387,714 Series D shares to acquire the Montreal-based animation and audio studio Game On Creative, Inc.
• The shares were issued via private subscription to Fiducie Familiale Samuel Girardin 2020, a trust linked to the CEO of the acquired studio, to secure his role as Studio Head at People Can Fly Canada.
• The transaction was valued at approximately 29.4 million PLN, with an issue price of 75.75 PLN per share based on the 30-day volume-weighted average price on the Warsaw Stock Exchange.