Management Board Report on CD PROJEKT Capital Group and CD PROJEKT S.A. Activities in 2017

Key insights

6 takeaways

01
CD PROJEKT’s market capitalization grew by 85% to 9.3 billion PLN in 2017, supported by a strong financial position featuring zero debt and 647.5 million PLN in cash.See it on page 29
02
Net profit decreased by 20.1% year-over-year to 200.3 million PLN, primarily due to the lack of new major expansions for The Witcher 3: Wild Hunt.See it on page 75
03
The company is executing a long-term strategy focused on the development of Cyberpunk 2077 and the public beta of GWENT: The Witcher Card Game, while increasing R&D investment in REDengine technology.See it on page 54
04
Digital distribution channels now dominate the company's sales model, accounting for over 74% of flagship title sales and driving a global export business where over 95% of revenue is international.See it on page 16
05
The workforce expanded by 24% to 743 employees across 32 countries, supporting the company's 2016–2021 strategy of prioritizing proprietary IP and creative independence.See it on page 22
06
GOG.com expanded its international footprint in 2017 through platform localization efforts in China and Poland.See it on page 46

Summary

The CD PROJEKT Capital Group demonstrated robust financial health and operational growth throughout 2017, anchored by its dual-segment strategy involving the CD PROJEKT RED development studio and the GOG.com digital distribution platform. Despite a 20.1% year-over-year decrease in net profit to 200.3 million PLN—attributed to the absence of new major expansions for The Witcher 3: Wild Hunt—the company maintained a strong liquidity position with zero debt and a cash balance of 647.5 million PLN. The organization’s market capitalization surged by 85% to 9.3 billion PLN, reflecting investor confidence in its long-term strategy, which emphasizes creative independence and the development of proprietary intellectual property.

Operational focus during this period centered on the public beta launch of GWENT: The Witcher Card Game and the intensive development of the upcoming Cyberpunk 2077. The company significantly increased its investment in research and development, particularly in the fourth generation of its REDengine technology and cross-platform multiplayer systems. Simultaneously, GOG.com expanded its global reach through platform localization in China and Poland, contributing to a business model where over 95% of sales revenue is derived from international exports. This global outlook aligns with broader industry trends, as the company continues to pivot toward digital distribution channels, which accounted for over 74% of its flagship title's sales.

The Group’s 2017 activities were defined by a commitment to workforce expansion and corporate governance, growing its staff by 24% to 743 employees representing 32 countries. While navigating risks such as IT security, regulatory compliance, and the inherent volatility of the global gaming market, the company maintained a stable supply chain and a self-funded financial structure. By prioritizing long-term project development over short-term revenue spikes, the Group continues to execute its 2016–2021 strategy, positioning itself for future growth through technological innovation and deeper penetration into international markets.