Separate Financial Statement of CD PROJEKT S.A. for 2021

Key insights

7 takeaways

01
CD PROJEKT S.A. reported a significant revenue decline to 692.2 million PLN in 2021, down from 1.88 billion PLN in 2020.See it on page 30
02
Despite the revenue drop, the company remained profitable with a net profit of 240.1 million PLN, bolstered by IP BOX tax relief and 1.04 billion PLN in operating cash flow.See it on page 3
03
The company maintains a strong financial position with 1.87 billion PLN in total equity, zero outstanding bank loans, and 345.8 million PLN in year-end cash and cash equivalents.See it on page 3
04
Management has initiated a strategic shift to Unreal Engine for future development through a long-term partnership with Epic Games.See it on page 78
05
The company paid out 503.7 million PLN in dividends during 2021 while confirming that no impairment write-downs were required for brands or goodwill.See it on page 35
06
Due to geopolitical instability, the company suspended all business activities in Russia and Belarus.See it on page 78
07
The Management Board stated that performance targets for the 2020–2025 incentive program are unlikely to be met, though the company maintains a going concern assumption.See it on page 73

Summary

CD PROJEKT S.A. experienced a period of significant financial contraction during the 2021 fiscal year, characterized by a sharp decline in performance compared to the record-setting results of 2020. Annual sales revenue fell to 692.2 million PLN, down from approximately 1.88 billion PLN in the previous year, primarily driven by a reduction in digital videogame sales and a strategic pivot in development operations. Despite this downturn, the company remained profitable, reporting a net profit of 240.1 million PLN. This stability was supported by the application of IP BOX tax relief and a robust cash position, with 1.04 billion PLN generated from operating activities throughout the year.

The company’s balance sheet reflects a conservative financial strategy and a strong equity position, totaling 1.87 billion PLN as of December 31, 2021. While the firm paid out 503.7 million PLN in dividends, it maintained a year-end cash and cash equivalent balance of 345.8 million PLN. Management has confirmed that there are no outstanding bank loans and that the company possesses sufficient liquidity to support its ongoing operations. Furthermore, impairment testing conducted at year-end indicated that the company’s brands and goodwill remain appropriately valued, with no write-downs required.

Looking forward, the company has implemented strategic adjustments to its operational and development frameworks. These include a transition to Unreal Engine for future projects through a long-term partnership with Epic Games and the suspension of business activities in Russia and Belarus due to geopolitical instability. Although the Management Board noted that performance targets for the 2020–2025 incentive program are unlikely to be met, the company maintains a going concern assumption. The financial statements, prepared in accordance with IFRS, confirm that the organization remains well-positioned to navigate its current development cycle without compromising its long-term financial stability.