CD PROJEKT Q3 2017 Financial Results

Key insights

6 takeaways

01
CD PROJEKT reported 85 million PLN in sales revenue and 36 million PLN in net profit for Q3 2017, driven primarily by the sustained performance of The Witcher 3 franchise.
02
The Witcher franchise surpassed 1 billion PLN in cumulative pre-tax profit as of Q3 2017, more than two years after its initial release.
03
GOG.com achieved record-breaking growth with 33 million PLN in sales revenue, marking a 40% increase compared to the same period in 2016.
04
Cumulative development expenditures for Cyberpunk 2077 and GWENT reached 117 million PLN by the end of September 2017.
05
The company allocated 18 million PLN to development expenses during the third quarter of 2017 to support its future project pipeline.
06
CD PROJEKT is establishing a dedicated internal live operations department and transitioning to a new technology stack to support the long-term viability of GWENT: The Witcher Card Game.

Summary

CD PROJEKT Capital Group achieved strong financial performance in the third quarter of 2017, reporting 85 million PLN in sales revenue and 36 million PLN in net profit. The primary driver of these results remained the sustained commercial success of The Witcher 3 and its associated expansion packs. More than two years after its initial release, the franchise reached a significant milestone, surpassing 1 billion PLN in cumulative pre-tax profit, cementing its status as a long-term revenue generator for the company.

The GOG.com segment also experienced record-breaking growth, generating over 33 million PLN in aggregate sales revenue, representing a 40% increase compared to the same period in 2016. This performance was largely attributed to the ongoing development and popularity of GWENT: The Witcher Card Game. To support the long-term viability of this title, the company is transitioning to a new technology stack and establishing a dedicated internal live operations department. This team is tasked with maintaining player engagement through regular content updates, including new cards, challenges, and vanity items.

Investment in future projects remains a core strategic focus, with 18 million PLN allocated to development expenses during the quarter. By the end of September 2017, cumulative expenditures for the development of Cyberpunk 2077 and GWENT reached 117 million PLN. These figures reflect a period of transition where the company is balancing the mature, evergreen status of its established intellectual property with the significant capital investment required to bring its next generation of titles to market.