CD PROJEKT Q1 2018 Financial Results

Key insights

6 takeaways

01
CD PROJEKT reported Q1 2018 sales revenues exceeding 75 million PLN and a net profit of nearly 23 million PLN, driven by the continued commercial success of The Witcher 3 and GWENT.
02
The company invested over 21 million PLN in video game development during the quarter, bringing the total aggregate balance of development expenditures to 165 million PLN.
03
Cyberpunk 2077 remains the organization's primary strategic focus, supported by the acquisition of the Wrocław-based studio Strange New Things to bolster development capacity.
04
Cash and bank deposit reserves increased by nearly 15 million PLN compared to the end of 2017, supported by positive cash flows from operating activities.
05
Development resources are currently prioritized toward the GWENT: Homecoming project and the transition of GWENT out of its beta phase.
06
The company continues to monetize legacy intellectual properties while maintaining a disciplined capital management strategy focused on long-term growth.

Summary

CD PROJEKT Capital Group maintained a stable financial position during the first quarter of 2018, driven primarily by the enduring commercial success of The Witcher 3: Wild Hunt and its associated expansion packs, alongside the ongoing performance of GWENT: The Witcher Card Game. The company reported sales revenues exceeding 75 million PLN and a net profit of nearly 23 million PLN for the three-month period ending March 31, 2018. These results underscore the sustained market demand for the studio’s established intellectual properties several years after their initial releases.

Operational investments remained focused on long-term growth and product expansion. The company allocated over 21 million PLN toward video game development during the quarter, bringing the total aggregate balance of development expenditures to 165 million PLN. This capital deployment supported the continued refinement of GWENT, including preparations for the transition out of beta, and the development of the single-player campaign Thronebreaker. Furthermore, the company strengthened its internal capacity by acquiring the Wrocław-based studio Strange New Things to bolster the development of Cyberpunk 2077, which remains the organization's primary strategic focus.

Financial health remained robust, characterized by positive cash flows from operating activities that increased the group’s cash and bank deposit reserves by nearly 15 million PLN compared to the close of 2017. By balancing the monetization of legacy titles with significant reinvestment into future projects, the company demonstrated a disciplined approach to capital management. The strategic roadmap for the remainder of the year emphasizes the completion of the GWENT: Homecoming project and the continued scaling of resources dedicated to the studio's largest upcoming title.