Annual Report of 11 Bit Studios S.A. for 2024

11 bit studios S.A. reported record-breaking financial results for 2024, characterized by a 168.9% year-on-year revenue increase to PLN 140.54 million. This growth was primarily driven by the successful September launch of Frostpunk 2, which sold 592,000 copies by year-end and recouped its development costs within three days. Performance was further bolstered by strong back-catalogue sales and a robust publishing division, with the United States remaining the company's largest market and Steam serving as the dominant distribution platform.

Despite record top-line growth, the company recorded a modest net profit of PLN 6.9 million and an operating loss of PLN 2.84 million. These figures were heavily impacted by PLN 67.4 million in non-cash impairment losses, most notably a PLN 48.4 million charge following the discontinuation of "Project 8" due to poor projected returns. Additional impairments were recognized for the underperformance of published titles The Thaumaturge and Creatures of Ava. However, the company’s liquidity position remains strong, with cash reserves increasing to PLN 65.5 million, providing sufficient funding for upcoming projects without the need for external financing.

The company’s strategic outlook focuses on transitioning toward larger-scale intellectual properties. Key milestones include the rescheduled release of The Alters in June 2025 and the initiation of a new Frostpunk universe title slated for 2027. While the studio currently lacks formal ESG and diversity policies, it maintains a stable governance structure and utilizes the IP Box tax relief to optimize its effective tax rate. Operating primarily from its Warsaw headquarters, the firm continues to manage significant exposure to foreign exchange risks while navigating a competitive global gaming market valued at over $187 billion.