Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group: Q3 2019

Key insights

7 takeaways

01
The CD PROJEKT Group reported a net profit of 212.5 million PLN for the first nine months of 2022, with 98.7 million PLN generated in Q3 alone.See it on page 8
02
The company maintains a strong liquidity position with over 1.09 billion PLN in cash, deposits, and liquid financial assets.See it on page 10
03
Sales are heavily concentrated in North America, with three major external customers accounting for more than 57% of total consolidated revenue.See it on page 56
04
The development pipeline is transitioning to Unreal Engine 5 to support future projects within the Witcher and Cyberpunk franchises.See it on page 37
05
Operational expansion includes the establishment of a new North American production hub and the completed acquisition of The Molasses Flood LLC.See it on page 38
06
The company resolved legacy legal issues with a 1.85 million USD settlement for the Cyberpunk 2077 class-action lawsuit and suspended all activities in Russia and Belarus.See it on page 74
07
Management has abandoned the 2020–2025 incentive program targets and introduced a new 2023–2027 plan to align with long-term strategic goals.See it on page 66

Summary

The CD PROJEKT Group demonstrated robust financial health and strategic momentum during the first nine months of 2022, culminating in a net profit of 212.5 million PLN. The third quarter proved particularly successful, with net profit reaching 98.7 million PLN, a performance largely catalyzed by the release of the Cyberpunk: Edgerunners anime and subsequent updates to the Cyberpunk 2077 title. This growth trajectory is supported by a solid liquidity position, with over 1.09 billion PLN held in cash, deposits, and liquid financial assets, despite significant capital outflows related to dividend payments and ongoing investments in game development and infrastructure.

The Group’s operations remain heavily export-oriented, with North America serving as the primary market and three major external customers accounting for over 57% of consolidated sales. While the company maintains a conservative financial strategy, it is actively transitioning its development pipeline toward Unreal Engine 5 to support future projects across the Witcher and Cyberpunk franchises. This shift is accompanied by structural expansions, including the establishment of a North American production hub and the finalization of the acquisition of The Molasses Flood LLC.

Management continues to navigate a complex operational environment, marked by the suspension of activities in Russia and Belarus and the resolution of legacy legal challenges, such as the 1.85 million USD settlement regarding the Cyberpunk 2077 class-action lawsuit. Although the 2020–2025 incentive program targets are currently deemed unlikely to be met, the Group has initiated a new 2023–2027 incentive plan and continues to refine its corporate structure through mergers and subsidiary capital increases. Overall, the organization remains stable, with a clear strategic focus on long-term franchise development and technological modernization.