CD PROJEKT Group Q3 2023 Financial Results

The CD PROJEKT Group’s financial results for the third quarter of 2023 reflect a period of significant growth driven primarily by the successful launch of the Cyberpunk 2077: Phantom Liberty expansion. The company reported record-breaking quarterly performance, with consolidated sales revenue reaching 443 million PLN, an 80% increase compared to the same period in 2022. Net profit for the quarter totaled 203 million PLN, more than double the profit achieved in the comparative 2022 period. This financial success was supported by a 20% attachment rate for the expansion among the Cyberpunk 2077 player base on current-generation consoles and PC.

Operating costs rose by 64% during the quarter, largely due to substantial marketing investments for Phantom Liberty and increased administrative expenses related to new incentive programs and research initiatives. The company also completed the merger with Spokko, which impacted the balance sheet through the consolidation of assets and liabilities and the reversal of historic share write-downs. As of the end of September 2023, the group maintained a strong liquidity position, with cash, deposits, and treasury bonds totaling over 1 billion PLN.

Looking forward, the company is shifting its focus toward the Cyberpunk 2077: Ultimate Edition and the long-term development of its pipeline, most notably the next Witcher game, codenamed Polaris. Development resources are being reallocated from the Cyberpunk franchise toward these new projects, with the Polaris team expected to exceed 400 developers by mid-2024. Additionally, the company is establishing a new development presence in Boston to support the future of the Cyberpunk franchise. Management emphasized that while they expect a natural slowdown in standalone expansion sales, the Ultimate Edition is positioned to serve as the primary vehicle for future Cyberpunk revenue, supported by a broader strategy of nurturing the intellectual property through various media channels.