CD PROJEKT Group Q1 2021 Financial Results

Key insights

6 takeaways

01
CD PROJEKT Group reported a Q1 2021 net profit of 32.5 million PLN, heavily impacted by 30 million PLN in servicing costs for Cyberpunk 2077 and Gwent alongside 9 million PLN in R&D expenditures.See it on page 2
02
The company maintains a strong liquidity position with 1.915 billion PLN in cash, bank deposits, and treasury bonds, bolstered by a 1.04 billion PLN increase in cash flow during the quarter.See it on page 3
03
Cyberpunk 2077 remained the primary revenue driver, accounting for nearly 60% of product sales, though performance was constrained by the game's absence from the PlayStation Store.See it on page 2
04
The board has proposed a dividend payout of 504 million PLN, equivalent to 5 PLN per share, citing confidence in the company's long-term financial health.See it on page 4
05
Over 300 staff members are currently dedicated to stabilizing Cyberpunk 2077 and developing a next-gen edition scheduled for release in the second half of 2021.See it on page 7
06
The company is shifting toward a parallel AAA development model, supported by internal transformation efforts and talent acquisition at its Vancouver studio.See it on page 7

Summary

The CD PROJEKT Group’s financial results for the first quarter of 2021 reflect a transitional period defined by intensive post-launch support for Cyberpunk 2077 and a strategic shift toward future development. The company reported a net profit of 32.5 million PLN, a figure impacted by significant operational expenditures, including 30 million PLN dedicated to servicing Cyberpunk 2077 and Gwent, as well as 9 million PLN in research and prototyping costs for upcoming projects. Despite these costs, the group maintained a strong liquidity position, with cash, bank deposits, and treasury bonds reaching 1.915 billion PLN, supported by a 1.04 billion PLN increase in cash flow during the quarter.

The primary revenue driver for the period was Cyberpunk 2077, which accounted for nearly 60% of product sales, primarily through PC digital channels. The absence of the title from the PlayStation Store significantly constrained sales performance compared to the launch window. Management noted that while the game’s stability has improved through successive updates, the company is currently in ongoing discussions with platform holders regarding a return to digital storefronts. The board has proposed a dividend payout of 504 million PLN, or 5 PLN per share, reflecting confidence in the company’s long-term financial health.

Operational focus remains on stabilizing Cyberpunk 2077, with over 300 staff members dedicated to ongoing patches and the development of a next-gen edition scheduled for the second half of 2021. Simultaneously, the company is preparing for a transition to parallel AAA development, with smaller teams currently engaged in research for future unannounced projects. While the company continues to support The Witcher franchise through the upcoming mobile title The Witcher: Monster Slayer and a next-gen update for The Witcher 3, the group is prioritizing internal transformation and talent acquisition, particularly in its Vancouver studio, to support its long-term development pipeline.