Financial11 bit studios
Quarterly Report of 11 Bit Studios S.A. for the First Quarter of 2021
1 May 202152 pages~93 min full read
11 bit studios reported Q1 2021 revenue of PLN 14.84 million and a net profit of PLN 3.56 million, marking a significant decline from the PLN 30.52 million revenue and PLN 16.53 million profit recorded in Q1 2020.
See it on page 4The company is scaling its workforce toward a target of 250–300 employees, contributing to a 72.7% increase in operating costs during the quarter.
See it on page 23Despite lower quarterly earnings, the company maintains a strong financial position with record liquidity, holding PLN 107.8 million in financial assets and receivables and total assets of PLN 192.48 million.
See it on page 14Management has implemented a 2021–2025 incentive scheme tied to a cumulative profit target of PLN 328 million to align internal development with long-term growth.
See it on page 23The development pipeline is currently focused on three major internal projects—Project 8, Dolly, and Eleanor—with a strategic goal of releasing one proprietary title annually.
See it on page 50The company utilized the 'IP Box' tax relief for the first time in Q1 2021, allowing for a preferential 5% corporate income tax rate on qualifying intellectual property revenue.
See it on page 37Future revenue strategy relies on the long-tail sales of established titles like Frostpunk, Moonlighter, and Children of Morta, alongside an upcoming mobile launch of Frostpunk in partnership with NetEase.
See it on page 50During the first quarter of 2021, 11 bit studios S.A. transitioned into a phase of intensive internal development and portfolio scaling, following a period of high revenue generated by major content releases in the previous year. Revenue for the period reached PLN 14.84 million with a net profit of PLN 3.56 million, representing a significant year-on-year decline from the PLN 30.52 million in revenue and PLN 16.53 million in profit recorded in Q1 2020. This contraction was primarily due to the high comparative base set by the 2020 expansion of the Frostpunk franchise and the natural aging of the publishing portfolio, including titles such as Moonlighter and Children of Morta.
Despite the decline in immediate earnings, the company maintained a robust financial position, ending the quarter with record liquidity. Total financial assets and receivables reached PLN 107.8 million, supported by a diverse investment portfolio of bonds and investment funds. The balance sheet remained strong with total assets of PLN 192.48 million, even as operating costs rose by 72.7% due to an expanding workforce and non-cash provisions for a new incentive scheme. Notably, the company utilized the "IP Box" tax relief for the first time, applying a preferential 5% corporate income tax rate to qualifying intellectual property revenue.
The strategic focus has shifted toward long-term growth, with the company aiming to release one proprietary title annually. Development efforts are currently concentrated on three major internal projects—Project 8, Dolly, and Eleanor—while the publishing division manages a pipeline of third-party titles. To support this expansion, 11 bit studios is scaling its headcount toward a target of 250–300 employees and has implemented a 2021–2025 Incentive Scheme tied to ambitious financial goals, including a cumulative profit target of PLN 328 million. Ongoing revenue continues to be anchored by the long-tail sales of established hits and the anticipated mobile launch of Frostpunk in partnership with NetEase.
