Gemini

Raport Bieżący Nr 2/2025: Decision to Gradually Withdraw From VR Game Publishing

The Board of PCF Group S.A., headquartered in Warsaw, has resolved to phase out its publishing activities in the virtual-reality (VR) segment, positioning the upcoming title “Bison” as the final VR game the company will release.

• PCF Group S.A. is exiting the VR game publishing market, citing reduced investment from VR platform holders and unsustainable commercial outlooks.
• The upcoming title 'Bison' will be the final VR project released by the Group, with a scheduled launch in the fourth quarter of 2025.
• Subsidiary Incuvo S.A. will participate in the final phase of 'Bison' production under revised terms, but will cease all future VR development and publishing activities.

Current Report No. 30/2024: Decision to Reduce the Gemini Project Development Team

The Board of PCF Group S.A., headquartered in Warsaw, resolved on 10 December 2024 to downsize the development team dedicated to Project Bifrost, a self-published title financed from the Group’s own resources.

• PCF Group S.A. has officially abandoned the production and publishing timetable for its self-published title, Project Bifrost, cancelling its planned 2026 early-access launch.
• The decision to downsize the Project Bifrost development team and place surplus staff on temporary layoff was driven by the Group's failure to secure sufficient funding to maintain the original budget and schedule.
• The Group will conduct an impairment test on Project Bifrost’s capitalized expenditures as of 31 December 2024, in accordance with International Accounting Standard 36, to determine the loss of asset value.

People Can Fly 3Q24 Financial Results

The People Can Fly Group’s financial results for the third quarter of 2024 highlight a period of operational transition and strategic realignment.

• People Can Fly reported a net loss of PLN 33.3 million for the first nine months of 2024, driven by a write-off for Project Red and contract adjustments with Square Enix.
• Revenue for the first nine months of 2024 reached PLN 131.9 million, up from PLN 111.3 million in the same period of 2023, though EBITDA fell to PLN 5.1 million.
• The company is targeting PLN 3.3 billion in total revenue between 2024 and 2028, with an estimated financing requirement of PLN 350 million for 2025–2026.

Financial Results 9M24

PCF Group S.A. presents its financial and operational results for the first nine months of 2024, focusing on the performance of its global development studios and its VR-specialized subsidiary, Incuvo.

• PCF Group reported a net loss of PLN 33.3 million for 9M 2024, widening from a PLN 13.4 million loss in the same period last year.
• Total revenue grew to PLN 131.9 million from PLN 111.3 million, driven by the release of Bulletstorm VR and increased Work-for-Hire activity.
• Adjusted EBITDA dropped to negative PLN 1.7 million, down from a positive PLN 8.5 million in 9M 2023.

People Can Fly 1H24 Financial Results

The People Can Fly Group 1H24 financial results provide an overview of the company’s operational performance, portfolio status, and strategic outlook.

• People Can Fly reported a net loss of PLN 13.1 million for 1H24, with revenue reaching PLN 76.3 million and adjusted EBITDA of PLN 4.0 million.
• Profitability was negatively impacted by a PLN 7.8 million write-off for Project Red and accounting adjustments related to the Gemini project contract with Square Enix.
• The company is targeting PLN 3.3 billion in total revenue between 2024 and 2028, necessitating approximately PLN 350 million in new financing.

Półroczne Sprawozdanie Zarządu z Działalności Grupy Kapitałowej PCF Group S.A. oraz Spółki PCF Group S.A.: 2024

PCF Group S.A. experienced a period of significant strategic realignment and financial volatility during the first half of 2024.

• PCF Group reported a 155% increase in net loss to 33.3 million PLN for H1 2024, driven by a 63% surge in operating costs and over 76 million PLN in write-offs from the cancellation of Project Dagger and Project Red.
• The company requires approximately 350 million PLN in new financing between 2025 and 2026 to support its transition toward a self-publishing business model.
• Revenue grew 11% year-over-year to 76.3 million PLN, supported by work-for-hire development fees from partnerships with Square Enix (Project Gemini), Microsoft (Project Maverick), and Krafton (Project Echo).

Financial Results 1H24

PCF Group S.A. reported its financial results for the first half of 2024, highlighting a period of strategic adjustment and portfolio expansion within the global gaming market.

• PCF Group reported a net loss of PLN 33.3 million and an EBITDA loss of PLN 11.3 million for 1H24, driven by a contract amendment with Square Enix for Project Gemini and a PLN 7.8 million write-off for Project Red.
• Revenue for 1H24 reached PLN 76.3 million, a modest increase from the PLN 68.7 million recorded in 1H23, despite the negative impact of margin reductions in the second quarter.
• The group is shifting its strategic focus toward self-publishing and VR specialization to mitigate the financial volatility inherent in major work-for-hire contract renegotiations.

Raport Bieżący Nr 13/2024

The purpose of the current report is to confirm the finalized plan for Project Gemini and to document the execution of a new content-rider agreement that amends the existing production-publishing contract between PCF Group S.A. and Square Enix Limited.

• PCF Group S.A. and Square Enix Limited signed a new agreement on 19 June 2024 that transitions the European development of Project Gemini to a work-for-hire model.
• The revised contract eliminates previous commercial terms, restricting future Project Gemini revenues to the recovery of direct costs incurred by PCF Group.
• The updated financial structure will lower both unit and consolidated sales revenue, as well as the net profit attributable to the project.

PCF Group 2023 Financial Results

The 2023 financial results for PCF Group reflect a challenging fiscal year characterized by a significant decline in profitability, largely driven by the impairment of the Dagger project and increased operational costs.

Consolidated Quarterly Report for First Quarter 2024

PCF Group demonstrated a significant operational recovery during the first quarter of 2024, characterized by a substantial increase in consolidated revenue to PLN 56.9 million, up from PLN 34.9 million in the same period of 2023.

• PCF Group reported Q1 2024 consolidated revenue of PLN 56.9 million, a significant increase from PLN 34.9 million in Q1 2023, driven largely by self-publishing growth from PLN 2.1 million to PLN 20.9 million.
• The Group incurred a consolidated net loss of PLN 0.9 million, an improvement over the PLN 4.3 million loss in the prior year, with the parent company achieving a net profit of PLN 5.7 million.
• Portfolio optimization led to the cancellation of Project Dagger, resulting in a PLN 68.3 million non-cash write-off, and the termination of the Bulletstorm VR agreement with Incuvo S.A. to regain commercial control.

People Can Fly Financial Results 2023

The 2023 financial results for PCF Group S.A. (People Can Fly) detail a transitional and challenging fiscal year for the Warsaw-based game developer.

• People Can Fly reported a net loss of 75.6 million PLN in 2023, largely driven by a 68.3 million PLN non-cash write-off following the cancellation of Project Dagger.
• Consolidated revenue fell to 150.1 million PLN from 180.3 million PLN in 2022, a decline attributed to the previous year's high comparative base from a terminated Take-Two Interactive contract and the launch of Green Hell VR.
• The company is implementing austerity measures, including office closures and spending freezes, to address liquidity concerns and rising costs associated with a 24% increase in headcount to 756 employees.

Letter to Shareholders

This shareholder letter details the strategic restructuring and financial challenges faced by PCF Group S.A. throughout 2024 and early 2025.

• PCF Group S.A. recorded a 154.9 million PLN impairment charge for Project Bifrost in late 2024, alongside a 7.7 million PLN write-off for the cancellation of Projects Dagger and Red.
• The company is pivoting away from self-publishing and VR to focus on Work-for-Hire (WFH) contracts and AAA action titles to stabilize its financial foundation.
• Financial pressures and project cancellations led to the company's first year-over-year workforce reduction, impacting over 150 employees across departments and the Square Enix-partnered Project Gemini.