CD PROJEKT Group Condensed Interim Consolidated Financial Statement: Q3 2023

The CD PROJEKT Group demonstrated robust financial growth during the first nine months of 2023, anchored by the successful release of the Cyberpunk 2077: Phantom Liberty expansion. This launch served as the primary catalyst for a significant increase in quarterly net profit, which reached PLN 202.9 million for the third quarter, compared to PLN 97 million in the same period of 2022. Total sales revenue for the quarter rose to PLN 442.7 million, with North America remaining the company’s dominant market, accounting for approximately 74.5% of revenue. The Group maintains a strong liquidity position, holding over PLN 1 billion in cash, bank deposits, and Treasury bonds, supported by net cash inflows from operating activities.

The company’s operational strategy during this period focused on long-term franchise development and organizational refinement. Beyond the commercial success of the Cyberpunk and Witcher brands, the Group implemented a 9% workforce reduction and transitioned to Agile methodologies to improve efficiency. A major leadership succession plan was also finalized, with Adam Badowski and Michał Nowakowski set to assume the roles of joint CEOs in 2024. These changes occur alongside a strategic shift toward Unreal Engine 5 for future projects and an expanded presence in the North American market, ensuring the company remains positioned for sustained development despite ongoing geopolitical monitoring and the suspension of operations in Russia and Belarus.

Financial reporting for the period reflects consistent accounting practices under IFRS, with minor restatements to 2022 data regarding holiday pay and management remuneration to ensure comparability. The Group’s financial structure remains stable, characterized by a total equity of PLN 2.21 billion and a disciplined approach to asset amortization, which has been extended through 2028 for Cyberpunk 2077. While the company faces revenue concentration risks—with two external customers accounting for over 56% of sales—the successful integration of subsidiaries like Spokko sp. z o.o. and the utilization of R&D and intellectual property tax reliefs underscore a stable, growth-oriented fiscal foundation.