CD PROJEKT Q1 2020 Financial Results

Key insights

7 takeaways

01
CD PROJEKT recorded its strongest Q1 in history with 193 million PLN in consolidated revenue, a 2.4-fold increase year-over-year, and a fivefold increase in net profit to 92 million PLN.See it on page 1
02
The Witcher series reached a cumulative 50 million units sold, serving as a primary revenue driver alongside the release of Thronebreaker on Nintendo Switch and Gwent on mobile.See it on page 3
03
Cyberpunk 2077 remains on track for its September 17, 2020 release date despite the transition to remote work caused by the COVID-19 pandemic.See it on page 6
04
The company held a cash position of 610 million PLN as of March 31, 2020, bolstered by deferred revenues from Cyberpunk 2077 preorders.See it on page 2
05
Management confirmed that a next-generation version of Cyberpunk 2077 is currently in development for future release.See it on page 4
06
The company is diversifying its cash assets through investments in domestic and foreign treasury bonds to mitigate market volatility.See it on page 7
07
Future multiplayer components for the Cyberpunk franchise will incorporate live-service lessons from Gwent, though the single-player experience will remain free of microtransactions.See it on page 5

Summary

CD PROJEKT’s financial results for the first quarter of 2020 represent the strongest opening quarter in the company’s history. Consolidated revenues reached 193 million PLN, a 2.4-fold increase compared to the same period in 2019, while net profit grew more than fivefold to 92 million PLN. This performance was driven by the continued success of The Witcher 3, which reached a cumulative 50 million units sold across the series, alongside the release of Thronebreaker on Nintendo Switch and Gwent on mobile platforms. The company maintained a robust cash position of 610 million PLN by the end of March, supported by deferred revenues from Cyberpunk 2077 preorders.

The company’s primary operational focus remains the final development phase of Cyberpunk 2077, which is scheduled for release on September 17, 2020. Despite the global COVID-19 pandemic necessitating a transition to remote work for the entire development team, leadership confirmed that production remains on track. Key milestones, including media hands-on sessions and the Night City Wire digital event, are proceeding as planned to maintain marketing momentum. Management noted that while the pandemic created some initial logistical challenges regarding localization and motion capture, these hurdles have been largely resolved, allowing the team to focus on final bug-fixing and polishing.

Regarding long-term strategy, the company is diversifying its cash assets by investing in domestic and foreign treasury bonds to mitigate market volatility. While the current focus is on the launch of Cyberpunk 2077 for current-generation consoles and PC, management confirmed that a next-generation version is in development for future release. The company also emphasized its commitment to operating live-service games, drawing on lessons from Gwent to inform the future multiplayer component of the Cyberpunk franchise, while reiterating that the single-player experience will remain free of microtransactions.