Financial

Quarterly Report of 11 Bit Studios S.A. for the First Quarter of 2022

1 May 202254 pages19,851 words

Summary

During the first quarter of 2022, 11 bit studios S.A. demonstrated a period of strategic expansion and financial resilience, reporting a 19.6% year-on-year revenue increase to PLN 17.75 million. Net profit rose to PLN 3.77 million, a 6% improvement over the previous year, despite significant one-time impacts including a PLN 3.68 million donation to the Ukrainian Red Cross and costs associated with a new employee incentive scheme. This growth was underpinned by the sustained commercial performance of proprietary titles such as Frostpunk and This War of Mine, alongside publishing successes like Moonlighter and Children of Morta. The company’s financial position remains exceptionally liquid, with total financial assets reaching PLN 117.3 million, including PLN 50.4 million in cash and cash equivalents. This capital strength has facilitated a transition toward a more aggressive growth model. Key investments during the quarter included the acquisition of a 40% stake in the development studio Fool’s Theory and the continued capitalization of production costs for major upcoming titles, including Frostpunk 2, Project 8, and Dolly. Total intangible assets grew to PLN 67.3 million as the studio scales toward a three-team internal production structure with a combined budget of approximately PLN 110 million. Beyond internal development, there is a clear strategic pivot toward expanding the publishing division. The company has allocated PLN 30 million to its current external portfolio and earmarked an additional PLN 50 million for new projects through 2023, aiming for a consistent output of three to four third-party releases annually. With a workforce of 222 personnel and a long-term incentive scheme targeting PLN 656 million in revenue through 2025, the studio is positioned to leverage its robust balance sheet for both organic development and further corporate acquisitions within the global gaming market.

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Quarterly Report of 11 Bit Studios S.A. for the First Quarter of 2022

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