Annual Report: 11 Bit Studios S.A. 2022

In 2022, 11 bit studios S.A. maintained a stable financial trajectory, reporting revenue of PLN 74.2 million, a 5.8% year-on-year increase. While net profit declined by 20.2% to PLN 22.9 million due to a 34.5% rise in operating expenses, the company remains in a strong financial position with total cash resources of PLN 87.28 million and a low leverage ratio of 8.98%. The firm continues to fund its operations and ambitious development pipeline entirely through internal cash reserves, avoiding external debt while investing heavily in future titles such as Frostpunk 2, The Alters, and The Invincible.

The company’s strategy centers on scaling its in-house development teams and expanding its third-party publishing division. This is supported by strategic equity investments in partner studios, including Fool’s Theory and Starward Industries. By leveraging its established back catalogue—specifically Frostpunk and This War of Mine—the studio generates the necessary capital to sustain its "alternative to the mainstream" philosophy. Financial reporting adheres to International Financial Reporting Standards (IFRS), with the company utilizing the "IP Box" tax relief to optimize its effective tax rate, which stood at 15.93% for the year.

Operational risks, including currency volatility and the inherent unpredictability of the gaming market, are managed through conservative financial hedging and a focus on human capital. The company employed over 250 staff in 2022, prioritizing professional development and a hybrid work culture. Despite the absence of formal ESG policies, the studio demonstrated significant corporate social responsibility, notably donating USD 850,000 to the Ukrainian Red Cross. Moving forward, the company remains committed to its independent growth model, focusing on long-term asset development and a consistent annual release cycle.