Condensed Interim Consolidated Financial Statement of the CD PROJEKT Capital Group: Q3 2017

Key insights

6 takeaways

01
CD PROJEKT generated a net profit of 154.4 million PLN during the first nine months of 2017, driven by the ongoing performance of The Witcher 3: Wild Hunt and GOG.com.See it on page 7
02
The company maintains a strong liquidity position with 638 million PLN in cash and bank deposits, supported by 197.9 million PLN in operating cash flows.See it on page 71
03
Total equity grew to 834.5 million PLN by September 30, 2017, despite a 100.9 million PLN dividend payout issued in June 2017.See it on page 10
04
Development resources are currently focused on Cyberpunk 2077 and GWENT: The Witcher Card Game, with the latter expanding into the Chinese market via a new Shanghai subsidiary.See it on page 38
05
The Group consolidated its activity segments into a single reporting unit and performed retrospective adjustments to prior-year data to improve reporting clarity.See it on page 24
06
Management reported net financial expenses resulting from negative exchange rate fluctuations, though overall financial health remained stable.See it on page 51

Summary

The CD PROJEKT Capital Group maintained a robust financial position throughout the first nine months of 2017, characterized by sustained profitability and significant investment in future product pipelines. During this period, the Group generated a net profit of 154.4 million PLN, supported by consistent revenue from the long-term performance of The Witcher 3: Wild Hunt and the continued expansion of the GOG.com digital distribution platform. Despite a dividend payout of 100.9 million PLN in June 2017, the company successfully grew its total equity to 834.5 million PLN, underpinned by strong operating cash flows of 197.9 million PLN and a healthy liquidity position featuring 638 million PLN in cash and bank deposits.

Operational focus during the third quarter remained centered on the development of high-profile titles, specifically Cyberpunk 2077 and GWENT: The Witcher Card Game. The latter saw significant strategic investment, including e-sports integration and a closed beta launch in China, facilitated by the establishment of a new subsidiary in Shanghai. This international expansion, alongside the internal merger of GOG entities, reflects a broader effort to streamline organizational structure and support regional growth. While the Group recorded net financial expenses due to negative exchange rate fluctuations, the overall financial health remained stable, with management confirming that all financial instruments were accurately valued.

To improve reporting clarity, the Group consolidated its activity segments into a single CD PROJEKT reporting unit and implemented retrospective adjustments to prior-year data. These changes, which included reclassifying certain expenses and deposits, did not impact the company’s net financial results or equity. As of September 30, 2017, the organization remains committed to its long-term development strategy, balancing the monetization of existing intellectual property with the intensive capital requirements of its upcoming game portfolio.