Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for H1 2021

Key insights

6 takeaways

01
CD PROJEKT Group reported 470.6 million PLN in sales revenue and 105.0 million PLN in net profit for H1 2021, with North America accounting for approximately 78% of total sales.See it on page 3
02
The company distributed 503.7 million PLN in dividends, or 5.00 PLN per share, while maintaining a cash and cash equivalents balance of 669.1 million PLN as of June 30, 2021.See it on page 67
03
Short-term compensation-related liabilities were significantly reduced from 485.6 million PLN to 160.9 million PLN during the six-month period.See it on page 54
04
Gross trade receivables decreased from 1.3 billion PLN to 764 million PLN, reflecting effective cash collection from previous sales cycles.See it on page 35
05
Net profit declined compared to H1 2020 due to increased operating costs linked to post-release development, maintenance, and the depreciation of capitalized expenditures for Cyberpunk 2077.See it on page 30
06
The Group expanded its internal development capabilities by acquiring Digital Scapes Studios, which was subsequently rebranded as CD PROJEKT RED VANCOUVER STUDIO.See it on page 56

Summary

The CD PROJEKT Group’s financial performance for the first half of 2021 reflects a period of stabilization and transition following the high-profile release of Cyberpunk 2077. During this six-month interval, the company generated 470.6 million PLN in sales revenue and a net profit of 105.0 million PLN. While revenue growth was supported by ongoing digital distribution and international exports—with North America representing approximately 78% of total sales—net profit declined compared to the same period in 2020. This contraction is largely attributed to elevated operating costs associated with post-release development, maintenance, and the depreciation of capitalized expenditures.

Despite these pressures, the Group maintained a robust financial foundation, concluding the period with 669.1 million PLN in cash and cash equivalents. A significant strategic action during this timeframe was the distribution of 503.7 million PLN in dividends, equivalent to 5.00 PLN per share, which impacted total equity but underscored the company’s commitment to shareholder returns. The balance sheet also saw a notable reduction in short-term liabilities and provisions, particularly regarding compensation-related liabilities, which fell from 485.6 million PLN to 160.9 million PLN. Furthermore, the company successfully reduced its gross trade receivables from 1.3 billion PLN to 764 million PLN, signaling effective cash collection from previous sales cycles.

Operational activities during this period focused on long-term growth and technical infrastructure. The Group continued to leverage its status as an R&D center to optimize intellectual property taxation and expanded its internal development capabilities through the acquisition of Digital Scapes Studios, subsequently rebranded as CD PROJEKT RED VANCOUVER STUDIO. Adhering to IAS 34 and IFRS standards, the company remains positioned as a going concern, with management confirming that the carrying amounts of its financial instruments accurately reflect fair market values as of June 30, 2021.