Management Board Report on CD PROJEKT Group Activities in 2023

Key insights

7 takeaways

01
CD PROJEKT achieved its second-highest net profit in history in 2023, recording a 38.9% increase in net profit and a 29.1% rise in total sales revenue compared to 2022.See it on page 66
02
The financial performance was anchored by the success of the 'Cyberpunk 2077: Phantom Liberty' expansion, which sold over 5 million copies, alongside sustained revenue from 'The Witcher 3: Wild Hunt'.See it on page 24
03
The company maintains a strong financial position with PLN 2.61 billion in total assets, over PLN 1.3 billion in liquid reserves, and a debt-free balance sheet.See it on page 72
04
The 'RED 2.0' strategy is driving a transition to a multi-project production model, utilizing Unreal Engine 5 and global expansion, including a new development hub in Boston, to mitigate long-cycle development risks.See it on page 42
05
International markets remain the primary revenue driver, accounting for 97.5% of the Group's total sales revenue in 2023.See it on page 34
06
Operational restructuring included a transition to Joint CEOs and the implementation of new performance-based incentive programs spanning 2023–2027.See it on page 118
07
Despite strong financial growth, the company's share price declined by 11.3% during the 2023 fiscal year.See it on page 14

Summary

The CD PROJEKT Group’s 2023 activities centered on the successful execution of its "RED 2.0" strategy, which prioritizes the parallel development of multiple AAA projects across its core Witcher and Cyberpunk franchises. The primary thesis of the year was the transition toward a more predictable, multi-project production model supported by the adoption of Unreal Engine 5 and the expansion of global development hubs, including a new site in Boston. This strategic shift is designed to mitigate the risks associated with long-cycle game development while ensuring high-quality releases and long-term franchise growth.

Financially, the Group achieved its second-highest net profit in history, with a 38.9% increase in net profit and a 29.1% rise in total sales revenue compared to 2022. These results were driven largely by the release of the Cyberpunk 2077: Phantom Liberty expansion, which sold over 5 million copies, and the continued performance of The Witcher 3: Wild Hunt. The company maintains a robust financial position, characterized by total assets of PLN 2.61 billion, over PLN 1.3 billion in liquid reserves, and a debt-free balance sheet. Despite an 11.3% decline in share price during the year, the Group remains focused on international markets, which account for 97.5% of its sales revenue.

Operational highlights included a leadership transition to Joint CEOs, the restructuring of internal subsidiaries, and the implementation of new performance-based incentive programs for 2023–2027. The company also strengthened its risk management framework to address production complexities and cybersecurity threats. While navigating ongoing legal matters, including the conclusion of a U.S. class action lawsuit, the Group continues to prioritize a "gamers first" philosophy, leveraging the GOG.COM platform and community engagement to sustain its competitive edge in the global gaming industry.