CD PROJEKT FY 2019 Financial Results: Chat Session with Individual Investors

Key insights

6 takeaways

01
CD PROJEKT maintained the September 2020 release date for Cyberpunk 2077 despite the transition to remote work caused by the COVID-19 pandemic.See it on page 1
02
The company prioritized organic growth over dividends, reinvesting capital into development and future projects rather than establishing a stable dividend policy.See it on page 3
03
As of the end of 2019, the CD PROJEKT Group employed 1,111 total staff, including 697 developers.See it on page 1
04
Financial expenditures in 2019 included 165 million PLN in development costs and 122 million PLN in investment activities, supported by R&D tax credits and the IP Box preference.See it on page 3
05
Future growth strategy relies on the parallel development of major projects, with Cyberpunk 2077 expansions planned to follow the model established by The Witcher 3.See it on page 1
06
The company’s marketing strategy for Cyberpunk 2077 was designed to rely heavily on digital media to mitigate the impact of potential physical retail closures.See it on page 2

Summary

This investor chat session, held in April 2020, serves as a formal update from CD PROJEKT leadership regarding the company’s 2019 financial performance and its strategic outlook amidst the global COVID-19 pandemic. The primary objective of the session was to address shareholder concerns regarding operational continuity, the impact of remote work on the upcoming release of Cyberpunk 2077, and the company’s long-term growth trajectory.

Key financial and operational data points reveal that the CD PROJEKT Group employed 697 developers by the end of 2019, with a total workforce reaching 1,111 employees. Financial management during the period included 122 million PLN in investment activities and 165 million PLN in development expenditures, supported by tax relief measures such as the IP Box preference and R&D credits. Leadership confirmed that while the company maintains a robust cash buffer, it does not currently pursue a stable dividend policy, prioritizing organic growth and the funding of future projects instead.

Regarding the impact of the pandemic, management maintained that the September 2020 release date for Cyberpunk 2077 remained on track despite the transition to remote operations. The company emphasized that its marketing strategy was already heavily focused on digital media, mitigating potential disruptions from physical retail closures. Furthermore, the board confirmed that future growth will be driven by parallel development of major projects, with expansions for Cyberpunk 2077 expected to follow a model similar to The Witcher 3. The session concluded with a commitment to maintain organizational growth and a promise to provide a comprehensive strategic update following the launch of their flagship title.