People Can Fly 1H24 Financial Results

Key insights

7 takeaways

01
People Can Fly reported a net loss of PLN 13.1 million for 1H24, with revenue reaching PLN 76.3 million and adjusted EBITDA of PLN 4.0 million.See it on page 10
02
Profitability was negatively impacted by a PLN 7.8 million write-off for Project Red and accounting adjustments related to the Gemini project contract with Square Enix.See it on page 10
03
The company is targeting PLN 3.3 billion in total revenue between 2024 and 2028, necessitating approximately PLN 350 million in new financing.See it on page 15
04
Management has suspended dividend payments until self-publishing activities generate consistent positive cash flows.See it on page 2
05
The portfolio strategy relies on a mix of work-for-hire collaborations with partners like Microsoft, Square Enix, and Krafton, alongside self-publishing projects Bifrost and Victoria.See it on page 6
06
Self-publishing projects Bifrost and Victoria are currently scheduled for early access in 2026.See it on page 7
07
The group maintains a workforce of 756 employees operating across studios in North America and Europe.See it on page 4

Summary

The People Can Fly Group 1H24 financial results provide an overview of the company’s operational performance, portfolio status, and strategic outlook. The primary purpose of the report is to communicate the financial impact of ongoing development projects, recent contractual adjustments, and the company's long-term growth strategy. The document highlights a transition period characterized by significant investment in self-publishing initiatives alongside a robust work-for-hire (WFH) business model.

Financial performance for the first half of 2024 reflects a decline in profitability compared to the previous year, with revenue reaching PLN 76.3 million and an adjusted EBITDA of PLN 4.0 million. This downturn is attributed to the IFRS 15 accounting treatment of the Gemini project following a contract rider with Square Enix, as well as a PLN 7.8 million write-off related to Project Red. While the launch of Bulletstorm VR in the first quarter provided a revenue boost, these factors collectively pressured the company’s net profit, which stood at PLN -13.1 million for the period.

The company’s portfolio strategy remains balanced between WFH projects—including collaborations with Microsoft, Square Enix, and Krafton—and self-publishing efforts, specifically projects Bifrost and Victoria, both slated for early access in 2026. Operationally, the group maintains a workforce of 756 employees across studios in Europe and North America. Looking ahead, the company has initiated a review of strategic options, targeting total revenues of PLN 3.3 billion between 2024 and 2028. To achieve these goals, the company anticipates a need for approximately PLN 350 million in new financing and has suspended dividend payments until self-publishing activities generate consistent positive cash flows.