Separate Financial Statement of CD PROJEKT S.A. for 2019

Key insights

7 takeaways

01
CD PROJEKT S.A. achieved a net profit of 172.8 million PLN in 2019, a significant increase from the 109.5 million PLN reported in 2018.See it on page 7
02
Annual net revenues reached 361.4 million PLN, primarily fueled by strong digital distribution performance and high demand in the North American market.See it on page 28
03
The company increased its investment in development projects, with the gross carrying amount for projects in progress rising to 324.5 million PLN.See it on page 39
04
The effective tax rate was reduced to 7.01% through the strategic application of tax incentives, including the IP Box relief.See it on page 68
05
The balance sheet remained strong with 595.8 million PLN in total financial assets compared to 42.4 million PLN in financial liabilities.See it on page 3
06
The company successfully fulfilled goals under its 2016–2021 share-based incentive program, resulting in the granting of 5.5 million entitlements.See it on page 64
07
Financial reporting for 2019 incorporated the adoption of IFRS 16, requiring the recognition of new right-of-use assets and corresponding financial liabilities.See it on page 21

Summary

CD PROJEKT S.A. demonstrated robust financial growth during the 2019 fiscal year, characterized by a substantial increase in net profit to 172.8 million PLN, up from 109.5 million PLN in 2018. This performance was underpinned by net revenues of 361.4 million PLN, largely driven by strong digital distribution and high demand within the North American market. The company maintained a solid equity position of 1.07 billion PLN, supported by a strategic focus on long-term development projects and the effective utilization of tax incentives, including the IP Box relief, which contributed to a reduced effective tax rate of 7.01%.

Operational investments intensified throughout the year, with gross carrying amounts for development projects in progress rising to 324.5 million PLN. This expansion reflects the company’s commitment to its pipeline, supported by increased personnel and external collaborator expenditures. Furthermore, the company successfully navigated regulatory transitions, most notably the adoption of IFRS 16, which necessitated the recognition of right-of-use assets and corresponding financial liabilities. Despite these accounting adjustments and a shift in cash liquidity, the company maintained a strong balance sheet with total financial assets of 595.8 million PLN against 42.4 million PLN in financial liabilities.

The 2019 fiscal period also marked the successful achievement of goals under the 2016–2021 share-based incentive program, which granted 5.5 million entitlements to participants. By adhering to rigorous IFRS standards—including the five-step model for revenue recognition—and maintaining consistent accounting policies, the company ensured transparency and comparability in its financial reporting. Ultimately, the year concluded with a stable going-concern status, providing a foundation for continued investment in intellectual property and shareholder value as the company prepared for future growth cycles.