CD PROJEKT Capital Group Condensed Interim Consolidated Financial Statement: Q1 2018

Key insights

6 takeaways

01
CD PROJEKT reported Q1 2018 net revenues of 75.4 million PLN and a net profit of 22.9 million PLN, marking a decline compared to the same period in 2017 due to product aging and currency fluctuations.See it on page 8
02
The company maintains a strong liquidity position with total assets of approximately 1 billion PLN and cash reserves of 662 million PLN.See it on page 14
03
R&D investment remains a primary focus, with 21.2 million PLN spent during the quarter specifically on the development of Cyberpunk 2077 and GWENT.See it on page 14
04
International markets are critical to the business model, accounting for 94.59% of total revenue, with North America serving as the largest geographic segment.See it on page 52
05
The Group expanded its development capacity post-balance sheet by acquiring the Wrocław-based studio Strange New Things and investing in new property in Warsaw.See it on page 63
06
The company successfully transitioned to IFRS 9 and IFRS 15 accounting standards for revenue recognition and financial instruments without material impact on operating profits.See it on page 20

Summary

The CD PROJEKT Capital Group’s financial performance for the first quarter of 2018 reflects a period of transition characterized by the natural maturation of its flagship title, The Witcher 3: Wild Hunt, and a strategic pivot toward intensive research and development. The Group reported net revenues of 75.4 million PLN and a net profit of 22.9 million PLN, representing a decline from the same period in 2017. This contraction was primarily driven by unfavorable currency fluctuations, the structural impact of internal revenue attribution changes, and the aging of existing product cycles. Despite these headwinds, the Group maintained a robust financial foundation, ending the quarter with total assets of approximately 1 billion PLN and cash reserves of 662 million PLN.

Operational focus remained concentrated on the development of Cyberpunk 2077 and the GWENT project, which accounted for significant R&D expenditures totaling 21.2 million PLN. The Group’s business model continues to rely heavily on international markets, with 94.59% of revenue generated through exports and North America serving as the primary geographic segment. The digital distribution arm, GOG.com, remained a core component of the business, though it faced revenue pressure due to increased operating costs and shifting market dynamics.

To ensure long-term stability and regulatory compliance, the Group successfully adopted IFRS 9 and IFRS 15, implementing updated revenue recognition and financial instrument models without material disruption to reported operating profits. Furthermore, the organization strengthened its development capacity through the post-balance sheet acquisition of the Wrocław-based studio Strange New Things and a significant property investment in Warsaw. By maintaining a strong equity position and prioritizing high-value development projects, the Group continues to operate as a stable going concern while positioning its portfolio for future growth.