Financial11 bit studios
11 bit studios S.A. Financial Results Q1 2020 — Investor Letter
1 May 20202 pages~4 min full read
11 bit studios achieved record-breaking Q1 2020 financial results with PLN 30.52 million in revenue, a 114.3% year-on-year increase, and a net profit of PLN 14.51 million, up 226.9%.
See it on page 1The Frostpunk franchise surpassed PLN 100 million in cumulative revenue during Q1 2020, officially overtaking This War of Mine as the studio’s highest-earning title.
See it on page 1The company’s total financial assets exceeded PLN 100 million for the first time, bolstered by strong operating cash flows of PLN 24.3 million.
See it on page 1The publishing division, driven by titles like Moonlighter and Children of Morta, accounted for 24% of total quarterly revenue, signaling a successful shift toward a multi-faceted business model.
See it on page 1The studio plans to expand its workforce from 140 to approximately 200 employees to support the development of three internal projects currently codenamed Projekt 8, Projekt 9, and Projekt 10.
See it on page 1Despite COVID-19 operational challenges, the company is actively scaling its publishing pipeline with three large-scale projects currently in development.
See it on page 111 bit studios S.A. achieved its second-best quarterly performance in company history during the first quarter of 2020, driven by robust sales of its internal IP and publishing portfolio. Revenue reached PLN 30.52 million, representing a 114.3% increase year on year, while net profit rose by 226.9% to nearly PLN 14.51 million. These results were achieved despite non-cash provisions of over PLN 2.05 million related to an incentive scheme and the decision to defer IP Box tax relief benefits until the annual return. The company’s total financial assets, including cash and receivables, exceeded the PLN 100 million threshold for the first time, supported by strong operating cash flows of PLN 24.3 million.
The primary catalyst for this growth was the January 2020 launch of the Frostpunk: The Last Autumn expansion, which spurred renewed interest in the base game. Cumulative revenue for the Frostpunk franchise surpassed PLN 100 million during this period, overtaking the lifetime earnings of the studio's previous major hit, This War of Mine. Additionally, the publishing division contributed 24% of total quarterly revenue, led by the performance of Moonlighter and Children of Morta. This diversification highlights the company's successful transition from a single-title developer to a multi-faceted producer and publisher.
Looking forward, the Warsaw-based studio is focused on scaling its operations and workforce. Plans are underway to increase staff from 140 to approximately 200 employees to support the development of three internal titles currently under the working names Projekt 8, Projekt 9, and Projekt 10. Despite the operational challenges and travel restrictions imposed by the COVID-19 pandemic, the publishing division continues to expand its pipeline with three large-scale projects currently in development. The company maintains a positive outlook for the remainder of 2020, emphasizing a strategy of aggressive recruitment and portfolio expansion to sustain its growth trajectory.
