FinancialCD Projekt
CD Projekt Group H1 2024 Earnings
1 Aug 202411 pages~13 min full read
CD Projekt Group reported a 31% year-over-year increase in total sales revenue to 99.6 million PLN for H1 2024, fueled by strong back-catalogue sales and Witcher franchise performance.
Net profit after tax fell to 29.3 million PLN, impacted by higher tax liabilities and a 24 million PLN increase in deferred tax adjustments.
EBIT contracted significantly to 97.9 million PLN, down from 140.2 million PLN in the same period last year, due to rising operating costs and R&D investments.
Total operating expenses increased to 120.1 million PLN, driven by a surge in research and development expenditures totaling 45.9 million PLN alongside 52.9 million PLN in depreciation.
Despite higher costs, gross profit on sales improved to 218.0 million PLN, even as the cost of sales rose 16% to 170.0 million PLN.
The company maintains a stable capital structure with 1.37 billion PLN in cash, deposits, and bonds as of June 2024, supporting ongoing projects including Polaris, Orion, Sirius, and Hadar.
The first half of 2024 presents CD Projekt Group’s financial performance as a blend of solid top‑line growth and heightened cost pressures. Total sales revenue reached 99.6 million PLN, a 31 percent increase over the comparable period in 2023, driven primarily by a resurgence in back‑catalogue sales and expansions of flagship titles such as The Witcher series. Revenue from products and services climbed to 45.9 million PLN, while sales of goods for resale and materials grew modestly to 87.4 million PLN. Gross profit on sales improved to 218.0 million PLN, reflecting a healthier margin despite a 16 percent rise in cost of sales to 170.0 million PLN.
Operating expenses expanded notably, with total operating costs rising to 120.1 million PLN, up from 107.2 million PLN a year earlier. Selling expenses fell to 85.1 million PLN, yet research and development outlays surged, with new development expenditures of 45.9 million PLN and depreciation of 52.9 million PLN. EBIT contracted to 97.9 million PLN from 140.2 million PLN, while net profit after tax declined to 29.3 million PLN, reflecting the impact of higher tax liabilities and a 24 million PLN increase in deferred tax adjustments.
Liquidity indicators show a reduction in cash, deposits and bonds from 1.31 billion PLN at year‑end 2023 to 1.37 billion PLN at the end of June 2024, alongside a 5 percent drop in trade receivables. Total assets grew modestly to 2.66 billion PLN, while equity rose to 2.40 billion PLN, indicating a stable capital structure despite the cash outflow associated with intensified R&D spending and dividend distributions.
The reporting covers CD Projekt Group’s global operations, focusing on its core gaming business, shared services, and ancillary projects such as Polaris, Orion, Sirius and Hadar. All figures derive from the company’s internal financial statements prepared in accordance with Polish accounting standards, with no external survey or sampling methodology applied. The presentation is intended solely as an informational overview and does not constitute investment advice or forward‑looking forecasts.
