Management Board Report on CD PROJEKT S.A. Activities: 2015

Key insights

6 takeaways

01
CD PROJEKT S.A. achieved record 2015 financial results with 698.2 million PLN in sales revenue and a consolidated net profit of 336.2 million PLN, driven by the launch of The Witcher 3: Wild Hunt and its expansion.See it on page 32
02
The company ended 2015 with a robust cash position of 366.2 million PLN, zero outstanding debt, and a market capitalization exceeding 2.1 billion PLN, leading to its inclusion in the WIG30 index.See it on page 13
03
The organization has transitioned to a two-franchise development model, prioritizing the long-term production of Cyberpunk 2077 alongside its established role-playing game portfolio.See it on page 23
04
Operational capabilities were expanded in 2015 through the implementation of new ERP and CPM software and the establishment of an internal proprietary motion capture studio.See it on page 24
05
The company’s long-term strategic goal for the 2016–2021 period is to establish itself as one of the world’s top three video game developers.See it on page 9
06
Management identifies primary operational risks as potential development delays, technical infrastructure vulnerabilities, and the complexities of intellectual property management.See it on page 25

Summary

The year 2015 marked a transformative period for CD PROJEKT S.A., characterized by unprecedented financial growth and the global elevation of its brand. Driven by the highly successful launch of The Witcher 3: Wild Hunt and its subsequent expansion, Hearts of Stone, the company achieved record-breaking performance, reporting a consolidated net profit of 336.2 million PLN and sales revenues of 698.2 million PLN. This success allowed the firm to exceed its 2011–2016 strategic targets, resulting in a robust cash position of 366.2 million PLN and the elimination of outstanding debt. By the end of the year, the company’s market capitalization surpassed 2.1 billion PLN, leading to its inclusion in the WIG30 index on the Warsaw Stock Exchange.

The company’s core strategy centers on maintaining creative and financial independence while producing high-quality, narrative-driven role-playing games and expanding the GOG.com digital distribution platform. To sustain this momentum, the organization has adopted a two-franchise development model, which includes the long-term development of Cyberpunk 2077. Operational efficiency was bolstered through the integration of new ERP and CPM software and the establishment of a proprietary motion capture studio. These efforts are supported by a global distribution network involving key international partners, ensuring the company remains positioned as a top-tier global developer.

Looking toward the 2016–2021 period, the company remains focused on cementing its status among the world’s top three video game developers. While the firm maintains a stable financial outlook with no anticipated liquidity threats, it continues to navigate inherent industry risks, including potential development delays, technical infrastructure vulnerabilities, and complex intellectual property management. Governance remains a priority, with the Management Board overseeing rigorous production management and active legal consultation to mitigate these risks, even as it manages ongoing legal proceedings and evolving shareholder dynamics.