CD PROJEKT Group Financial Results: 2018

Key insights

6 takeaways

01
CD PROJEKT Group reported 2018 revenues of 236 million and a net profit of 109 million, supported by a strong cash and bank deposit position of 658 million.See it on page 1
02
Total assets grew by 15% to 1.126 billion, driven by a 70% surge in development expenditures as the company scaled production for Cyberpunk 2077.See it on page 16
03
Digital sales continued to dominate the distribution model, accounting for 80% of product revenue in 2018, up from 74% in 2017.See it on page 20
04
PC remained the primary platform for sales at 54%, followed by PlayStation 4 at 33% and Xbox at 13%.See it on page 21
05
The company’s equity grew to 1.002 billion by year-end, providing a stable financial foundation for ongoing research and development.See it on page 19
06
Marketing efforts for Cyberpunk 2077 at E3 2018 generated significant reach, resulting in 2.8 billion views of related video content.See it on page 5

Summary

The 2018 financial results for CD PROJEKT Group detail a period of significant investment and operational transition, characterized by a strategic shift toward long-term development projects. The company reported total assets of 1.126 billion, representing a 15% increase over the previous year, driven largely by a 70% surge in development expenditures. This financial trajectory underscores a focus on scaling production capabilities and expanding the company’s intellectual property portfolio, particularly regarding the development of Cyberpunk 2077.

Financial performance metrics for 2018 show revenues from the sale of products and services reaching 236 million, with a net profit of 109 million. While these figures reflect a decline compared to 2017, the company maintained a robust cash and bank deposit position of 658 million at year-end. The data highlights a continued evolution in distribution channels, with digital sales accounting for 80% of product revenue in 2018, up from 74% in 2017. Furthermore, platform distribution trends indicate that PC remains the dominant segment, representing 54% of sales, followed by PlayStation 4 at 33% and Xbox at 13%.

Operational highlights emphasize the company’s commitment to the "games as a service" model, specifically through regular updates and expansions for Gwent. Marketing efforts during this period were substantial, with the E3 2018 gameplay reveal for Cyberpunk 2077 generating significant engagement, including 2.8 billion views of video content and high levels of interaction from streamers and content creators. The company’s financial health remains supported by strong equity growth, which reached 1.002 billion by the end of 2018, providing a stable foundation for ongoing research and development activities.