Management Board Report on CD PROJEKT Capital Group Activities: H1 2019

Key insights

6 takeaways

01
CD PROJEKT’s market capitalization grew by 33% in H1 2019, reaching 22.1 billion PLN by the end of June.See it on page 13
02
Sales revenue increased by 27.3% to 214.4 million PLN, with 96% of earnings generated from international exports.See it on page 40
03
The company maintained a strong liquidity position with over 529 million PLN in cash and deposits, supported by a debt-free balance sheet and equity representing 86% of total liabilities.See it on page 51
04
Consolidated net profit reached 51.68 million PLN, despite increased administrative and R&D costs driven by the final production phases of Cyberpunk 2077.See it on page 42
05
GOG.com secured one-third of all digital PC preorders for Cyberpunk 2077 and achieved record performance during its Summer Sale.See it on page 30
06
The group expanded its workforce to 953 employees to support the development pipeline, which included new content for GWENT and the porting of The Witcher 3 to Nintendo Switch.See it on page 26

Summary

During the first half of 2019, the CD PROJEKT Capital Group demonstrated robust financial health and operational growth, centered on the dual pillars of high-profile game development and digital distribution. The organization’s primary thesis focused on scaling its internal development capabilities to support the upcoming launch of Cyberpunk 2077 while simultaneously leveraging the enduring popularity of The Witcher franchise and the GOG.com platform to maintain consistent revenue streams. By the end of June 2019, the group achieved a market capitalization of 22.1 billion PLN, reflecting a 33% increase that underscored strong investor confidence in its long-term strategic roadmap.

Financial results for the period were characterized by a 27.3% increase in sales revenue to 214.4 million PLN, with 96% of these earnings derived from international exports. While consolidated net profit remained stable at 51.68 million PLN, the company experienced a significant rise in administrative costs and development expenditures, largely attributed to the final production phases of its flagship title and adjustments to internal incentive programs. Despite a net negative cash flow resulting from substantial dividend payouts and heavy reinvestment into R&D, the group maintained a strong liquidity position with over 529 million PLN in cash and deposits, supported by a debt-free balance sheet and equity representing nearly 86% of total liabilities.

The scope of these activities spanned global markets, with the company successfully expanding its portfolio through new content for GWENT and the announcement of The Witcher 3 for Nintendo Switch. GOG.com further solidified its market presence by securing one-third of all digital PC preorders for Cyberpunk 2077 and achieving record-breaking performance during its Summer Sale. With a workforce expanded to 953 employees, the group remains positioned for sustained growth, prioritizing the successful delivery of its development pipeline and the continued integration of its digital distribution ecosystem.