Related Documents
Financial
Quarterly Report of 11 Bit Studios S.A. for the First Quarter of 2021
During 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.
11 bit studiosMay 2021
Financial
Quarterly Report of 11 Bit Studios S.A. for Nine Months Ended September 30th 2022
During the first nine months of 2022, 11 bit studios S.A. demonstrated a robust financial performance characterized by a 21% year-on-year increase in revenue to PLN 59.58 million and a net profit of PLN 19.97 million. This growth was primarily fueled by the sustained monetization of established titles such as Frostpunk and This War of Mine, alongside a rapidly expanding publishing division. Third-party publishing now accounts for 39% of total revenue, up from 25% in the previous year, supported by the success of titles like Moonlighter and Children of Morta. The United States remains the company's primary market, contributing PLN 46.37 million to the total revenue. The company is currently executing a strategic transition toward a multi-project development model, significantly increasing its investment in future growth. Research and development spending rose by over 65% to PLN 34.26 million, with total intangible assets reaching PLN 89.5 million. These investments are concentrated on three major proprietary titles—Frostpunk 2, The Alters, and Project 8—as well as a diverse four-game publishing portfolio. To support this expansion, the firm has deepened its industry footprint through strategic equity acquisitions, including a 40% stake in Fool’s Theory Sp. z o.o. and a significant investment in Starward Industries S.A. Financial stability remains a core strength, with over PLN 102 million held in cash and current financial assets. While operating expenses and service costs rose due to higher third-party royalties and increased management remuneration, the company benefited from a favorable effective tax rate of 11.43% through the IP Box relief program and currency exchange gains from a depreciating złoty. Despite a substantial PLN 3.66 million charitable donation to the Ukrainian Red Cross, earnings per share rose to PLN 8.40. Management remains focused on an ambitious five-year incentive scheme targeting PLN 656 million in cumulative revenue by 2025, underpinned by a strong liquidity position and no history of collection issues with major global digital platforms.
11 bit studiosNov 2022
Financial
Quarterly Report of 11 Bit Studios S.A. for the Three Months Ended 31 March 2024
Financial performance for the first quarter of 2024 reflects a transitional period characterized by steady revenue growth alongside increased operational spending. Revenue rose 3.81% year-on-year to PLN 15.33 million, primarily supported by the publishing division, which contributed 48% of total sales through titles such as The Invincible and The Thaumaturge. Geographically, the United States remains the most critical market, accounting for nearly 74% of total revenue. Despite the top-line growth, the company shifted from a prior-year profit to a net loss of PLN 1.6 million. This decline was driven by a 25.88% increase in operating expenses, largely due to a near-doubling of employee benefits and significant ongoing investments in upcoming proprietary titles. The balance sheet remains robust, with total assets reaching PLN 265.15 million and a strong liquidity position of PLN 40.56 million in cash and equivalents. Capital expenditure focused heavily on development, with PLN 140.7 million currently invested in ongoing projects, most notably Frostpunk 2, The Alters, and Project 8. Internal assessments indicate no risk of impairment for these assets, even under conservative revenue scenarios. To preserve capital for these large-scale projects, management has recommended allocating the entirety of the 2023 net profit to statutory reserves rather than issuing dividends. Strategic focus is now directed toward the second half of 2024, which is expected to serve as a major growth catalyst. The upcoming high-profile launches of Frostpunk 2 and The Alters, both of which will debut on PC Game Pass, are central to the company’s medium-term goal of releasing one proprietary and several third-party titles annually. While the company continues to benefit from the "IP Box" tax relief and the successful break-even of indie titles like INDIKA, the long-term financial trajectory remains tied to the successful execution of its major internal development pipeline and the continued expansion of the Frostpunk intellectual property across multiple media formats.
11 bit studiosMay 2024
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