People Can Fly 3Q24 Financial Results

Key insights

7 takeaways

01
People Can Fly reported a net loss of PLN 33.3 million for the first nine months of 2024, driven by a write-off for Project Red and contract adjustments with Square Enix.See it on page 10
02
Revenue for the first nine months of 2024 reached PLN 131.9 million, up from PLN 111.3 million in the same period of 2023, though EBITDA fell to PLN 5.1 million.See it on page 10
03
The company is targeting PLN 3.3 billion in total revenue between 2024 and 2028, with an estimated financing requirement of PLN 350 million for 2025–2026.See it on page 15
04
Two self-published titles, Bifrost and Victoria, are currently in development with early access releases scheduled for 2026.See it on page 7
05
The company continues to operate a work-for-hire model with active projects for Microsoft, Square Enix, and Krafton, including the newly signed Project Echo.See it on page 6
06
Management has suspended dividend payments until the company achieves consistent profitability and positive cash flow from its self-publishing initiatives.See it on page 15
07
As of late 2024, the company maintains a global workforce of over 750 employees and is currently undergoing a comprehensive strategic review initiated in August 2024.See it on page 15

Summary

The People Can Fly Group’s financial results for the third quarter of 2024 highlight a period of operational transition and strategic realignment. The company reported revenue of PLN 131.9 million for the first nine months of 2024, an increase from the PLN 111.3 million recorded in the same period of 2023. Despite this top-line growth, profitability faced significant pressure, with EBITDA falling to PLN 5.1 million and net profit declining to PLN -33.3 million. These results were primarily impacted by a write-off related to Project Red and adjustments to the Gemini work-for-hire contract following negotiations with Square Enix.

The company’s portfolio strategy remains balanced between work-for-hire (WFH) projects and self-publishing initiatives. Current WFH efforts include ongoing work on projects for Microsoft, Square Enix, and Krafton, with a new contract, Project Echo, signed in September 2024. Simultaneously, the company is advancing its self-publishing pipeline, specifically projects Bifrost and Victoria, both of which are scheduled for early access releases in 2026. Supplementary VR projects, managed through the Incuvo subsidiary, continue to contribute to the portfolio, with Green Hell VR and Bulletstorm VR serving as key assets.

Looking ahead, the company is undergoing a comprehensive review of strategic options initiated in August 2024. The updated strategic roadmap targets total revenues of PLN 3.3 billion between 2024 and 2028, supported by a projected financing requirement of approximately PLN 350 million for the 2025–2026 period. Management has indicated that no dividends will be issued until the company achieves consistent profitability and positive cash flows from its self-publishing activities. As of late 2024, the strategic review remains ongoing, with the company maintaining a workforce of over 750 employees across its international studios in Poland, Canada, the UK, and Ireland.