CD PROJEKT Q3 2018 Financial Results

Key insights

6 takeaways

01
CD PROJEKT reported Q3 2018 sales revenues of 67 million PLN and a net profit of 15.5 million PLN, maintaining financial stability despite seasonal industry slowdowns.
02
Operational efficiency allowed the company to generate 29 million PLN in net cash flows from operating activities, fully funding all R&D expenditures internally.
03
Development investment reached 28 million PLN during the quarter, bringing the total aggregate balance of R&D expenditures to 228 million PLN by September 30, 2018.
04
The company secured major distribution partnerships with Warner Bros. Home Entertainment and BANDAI NAMCO to manage the physical release of Cyberpunk 2077 in North America and Europe.
05
Development capacity was expanded through a strategic partnership with the Canadian studio Digital Scapes to support the production of the upcoming title portfolio.
06
The company successfully launched Thronebreaker: The Witcher Tales and finalized the Homecoming project for GWENT, while continuing to rely on the sustained commercial performance of The Witcher 3: Wild Hunt.

Summary

CD PROJEKT maintained financial stability during the third quarter of 2018, a period traditionally characterized by seasonal slowdowns in the gaming industry. The Capital Group reported sales revenues of 67 million PLN and a net profit of 15.5 million PLN. Operational efficiency remained a core strength, as net cash flows from operating activities reached 29 million PLN, nearly doubling the net profit and allowing the company to fully fund its research and development expenditures through internal cash generation.

Development activity reached record intensity during this period, with 28 million PLN invested in ongoing projects, bringing the aggregate balance of R&D expenditures to 228 million PLN by the end of September. Primary development efforts focused on Cyberpunk 2077, GWENT: The Witcher Card Game, and Thronebreaker: The Witcher Tales. The company leveraged high-profile industry events, such as gamescom, to build momentum for Cyberpunk 2077, while continuing to benefit from the sustained commercial performance of The Witcher 3: Wild Hunt and its associated expansions.

Strategic expansion and distribution planning defined the post-quarter outlook. The company secured major distribution partnerships with Warner Bros. Home Entertainment and BANDAI NAMCO to handle the physical release of Cyberpunk 2077 across North America and Europe. Furthermore, the firm bolstered its development capacity through a strategic partnership with the Canadian studio Digital Scapes. The period concluded with the successful release of Thronebreaker: The Witcher Tales and the finalization of the Homecoming project for GWENT, setting the stage for broader console availability in late 2018. These initiatives reflect a transition toward high-volume production and global market preparation for the company’s upcoming title portfolio.