Condensed Interim Consolidated Financial Statement: CD PROJEKT Group Q1 2023

Key insights

6 takeaways

01
CD PROJEKT Group reported a Q1 2023 net profit of 69.67 million PLN, maintaining parity with the same period in 2022 despite a decline in total sales revenue to 174.76 million PLN.See it on page 3
02
The company’s strong equity position of 2.11 billion PLN and total assets of 2.31 billion PLN are being driven by capital allocation toward future titles, the transition to Unreal Engine 5, and the adoption of the RED 2.0 production methodology.See it on page 37
03
North America remains the company's dominant market, accounting for 66% of total sales revenue during the first quarter.See it on page 57
04
Profitability was supported by a 21.5 million PLN reversal of impairment write-downs related to the restructuring of Project Sirius, alongside reduced maintenance costs and favorable tax adjustments.See it on page 72
05
The Management Board recommended a dividend of 1 PLN per share and established new incentive programs for 2023–2027 to prioritize long-term talent retention.See it on page 36
06
Corporate restructuring efforts during the quarter included the acquisition of remaining shares in Spokko and the merger of internal subsidiaries to streamline operations.See it on page 67

Summary

The CD PROJEKT Group maintained a stable financial position during the first quarter of 2023, characterized by a net profit of 69.67 million PLN, which remained consistent with the performance recorded in the same period of the previous year. While total sales revenue declined to 174.76 million PLN from 216.15 million PLN in Q1 2022—largely due to the absence of major new releases or promotional events—the company successfully offset this through reduced maintenance costs, favorable tax adjustments, and a 21.5 million PLN reversal of impairment write-downs related to the restructuring of Project Sirius. North America continues to serve as the primary market, accounting for 66% of total sales.

The Group’s balance sheet reflects a strategic shift toward long-term development, with total assets reaching 2.31 billion PLN. This growth is driven by significant capital allocation toward future game titles and infrastructure, supported by a transition to Unreal Engine 5 and the implementation of the agile RED 2.0 production methodology. Although cash and cash equivalents decreased as funds were reallocated into bank deposits and treasury bonds, the company maintains a robust equity position of 2.11 billion PLN. These financial activities occur alongside corporate streamlining efforts, including the acquisition of remaining shares in Spokko and the merger of internal subsidiaries.

Looking forward, the organization remains committed to its core franchises, The Witcher and Cyberpunk 2077, while optimizing its production pipeline to support multiple concurrent projects. Despite global geopolitical uncertainties, the company reports no material negative impacts on its operations. Following the close of the quarter, the Management Board signaled confidence in the Group’s trajectory by recommending a dividend payment of 1 PLN per share and initiating new incentive programs for the 2023–2027 period to align talent retention with long-term performance objectives.