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Financial
Quarterly Report of 11 Bit Studios S.A. for Nine Months Ended September 30th 2020
11 bit studios S.A. achieved record-breaking financial performance during the first nine months of 2020, characterized by a 37.89% year-on-year revenue increase to PLN 68.16 million and a net profit surge of 277.49% to PLN 32.12 million. This growth was primarily driven by the successful monetization of the Frostpunk portfolio, including the release of major expansions such as The Last Autumn and On The Edge, alongside strong contributions from the publishing division. Titles like Children of Morta and Moonlighter accounted for approximately 28% to 30% of total revenue, bolstered by new distribution channels such as Xbox Game Pass. The company significantly strengthened its liquidity position, ending the period with PLN 116 million in total financial assets and over PLN 80 million in cash and cash equivalents. Operating margins improved to 51.5%, aided by a 12% decrease in operating expenses following the conclusion of a costly 2017–2019 employee incentive scheme and the utilization of the IP Box tax relief, which applied a preferential 5% corporate income tax rate to qualifying intellectual property revenue. Despite pandemic-related recruitment challenges, the workforce grew to 156 employees as the company increased investments in intangible assets to PLN 32.69 million. Strategically, the company is transitioning toward a more frequent release cycle, aiming for one internal title every 12 to 18 months and one publishing project per quarter. Current development is focused on three internal projects, including the high-budget Project 8, which has transitioned to Unreal Engine 5, and projects codenamed Dolly and Eleanor. The publishing pipeline has expanded to four external titles with a total investment of PLN 25 million. While the company benefited from increased gaming demand during the COVID-19 pandemic, management remains cautious regarding potential long-term macroeconomic headwinds that could impact the premium games market.
11 bit studiosNov 2020
Financial
Quarterly Report of 11 Bit Studios S.A. for the Nine Months Ended September 30th 2021
During the first nine months of 2021, 11 bit studios S.A. focused on a strategic transition toward a multi-team production model and the expansion of its publishing pipeline. Financial performance for this period reflected a transitional phase, with revenue reaching PLN 49.2 million and net profit totaling PLN 17.4 million. These figures represent a year-over-year decline from 2020, driven by a high comparative base and the natural aging of the existing game portfolio, which includes established titles such as Frostpunk, Moonlighter, and Children of Morta. Despite lower current earnings, the company maintained a robust liquidity position, ending the period with PLN 121.5 million in financial assets and a significant increase in cash reserves to PLN 38.1 million. Operational efforts are heavily concentrated on future growth, with approximately PLN 110 million committed to the development of three major internal projects: Frostpunk 2, Project 8, and Dolly. To support these ambitions, the studio has migrated to Unreal Engine and expanded its workforce to 192 employees, contributing to a 74.6% increase in salary expenses. The company is also scaling its publishing division, earmarking PLN 80 million for third-party titles through 2023. This strategy aims to establish a consistent release cycle of one proprietary game and multiple third-party titles annually. The financial structure remains stable, characterized by a 9.8% increase in total assets to PLN 204.7 million and a reduction in total liabilities. While the abandonment of the internal Liquid Engine resulted in a minor impairment loss, the valuation of ongoing projects remains secure. Beyond core development, the studio is diversifying the Frostpunk intellectual property into mobile, board game, and literary markets while actively seeking minority acquisitions to bolster its long-term development and publishing capabilities.
11 bit studiosNov 2021
Financial
Quarterly Report of 11 bit studios S.A. for Q1 2019
The first quarter of 2019 marked a record-breaking start for 11 bit studios S.A., characterized by a significant financial turnaround and a six-fold year-over-year increase in revenue. Total revenue reached PLN 14.2 million, resulting in a net profit of PLN 4.4 million compared to a net loss of nearly PLN 1 million in the same period of 2018. This performance was primarily driven by the sustained commercial success of Frostpunk, which reached 1.4 million copies sold, and the publishing hit Moonlighter, which surpassed 500,000 units. The company’s liquidity position strengthened considerably, with total financial assets doubling to PLN 74.6 million, supported by robust cash flows and a substantial increase in bank deposits. The strategic focus during this period centered on mitigating industry volatility through the expansion of the publishing division and the diversification of the product portfolio. By increasing the publishing budget to PLN 5 million per project and targeting a release cadence of one proprietary game per year, the company aims to stabilize long-term returns. Operational scaling is evident in the growth of the workforce to 112 employees, with a target of 150, and the progression of Project 8 into full production. Furthermore, the company successfully managed its infrastructure needs by securing a new office building in Warsaw, financed through a long-term investment facility. Looking ahead, the company is prioritizing the porting of key titles to consoles and mobile platforms, alongside the highly anticipated launch of Children of Morta. With a stable management structure and a clear roadmap for both internal development and third-party publishing, 11 bit studios is positioned to leverage its strong cash reserves for future growth. The financial statements, prepared in accordance with IFRS, confirm a healthy balance sheet with no material legal risks or impairment threats to its intangible assets, which include PLN 18.1 million in development work and completed games.
11 bit studiosMay 2019
Financial
Quarterly Report of 11 Bit Studios S.A. for Nine Months Ended September 30th 2023
During the first nine months of 2023, 11 bit studios S.A. experienced a transitional period characterized by a significant decline in financial performance as the company prepared for a major new release cycle. Revenue fell 42% year-on-year to PLN 34.28 million, while net profit dropped from PLN 19.97 million to PLN 1.35 million. This downturn is primarily attributed to the natural aging of the existing game portfolio and the absence of new product launches during the period. Despite these challenges, the company maintained a strong liquidity position, with cash and cash equivalents rising to PLN 43.1 million and total assets increasing to PLN 264.1 million. The company’s strategic focus has shifted heavily toward research and development, with intangible assets related to ongoing development work rising to PLN 138.2 million. Major investments are concentrated on upcoming proprietary titles, including Frostpunk 2, The Alters, and Project 8, alongside publishing projects like The Thaumaturge. Management is targeting a more aggressive release cadence starting in 2024, aiming for one internal and three to four third-party titles annually. This growth strategy is supported by a 2021–2025 Incentive Scheme that sets ambitious five-year targets of PLN 656 million in revenue and PLN 328 million in pre-tax profit. Geographically, the United States remains the dominant market, accounting for 73% of total revenue, with Valve’s Steam platform serving as the primary distribution channel. While the company faced a Q3 net loss due to the non-cash remeasurement of its stake in Starward Industries, it continues to benefit from the "IP Box" tax relief and prudent cash management. With a robust pipeline of high-profile sequels and new IPs scheduled for the first half of 2024, the company is positioned to move past its current investment phase into a period of expected commercial expansion.
11 bit studiosNov 2023