Related Documents
Financial
Quarterly Report of 11 Bit Studios for the Three Months Ended 31 March 2025
During the first quarter of 2025, 11 bit studios demonstrated a period of strategic transition characterized by rising revenues and heavy investment in future titles. Revenue reached PLN 17.5 million, a 14.2% year-on-year increase driven largely by the continued performance of the Frostpunk franchise and strong demand in the United States, which accounted for over 75% of total sales. Despite this growth, the company realized a net loss of PLN 6.37 million. This deficit was primarily the result of a fivefold increase in depreciation and amortization following recent launches, higher royalty obligations, and significant non-cash finance costs totaling PLN 4.25 million due to the appreciation of the Polish złoty against the USD and EUR. The company maintains a robust financial foundation with PLN 69.5 million in cash and cash equivalents and total assets of PLN 255.4 million. Intangible assets grew to PLN 134.2 million, reflecting intensive development work on upcoming projects. Management has optimized the cost structure by reducing employee benefit provisions following the cancellation of "Project 8" and a reassessment of the 2021–2025 Incentive Scheme, as five-year financial targets are no longer expected to be fully met. Furthermore, the company continues to benefit from the "IP Box" tax relief, applying a preferential 5% corporate income tax rate to qualifying revenues. The strategic outlook for 2025 and beyond centers on a three-pillar development model involving internal production, external publishing, and the expansion of established intellectual properties. Immediate growth is expected from the June 2025 launch of The Alters and the summer release of Moonlighter 2. Long-term value is supported by the newly announced Frostpunk 1886, scheduled for 2027, and several proprietary projects in early development. Sensitivity analyses confirm that these ongoing investments remain resilient against potential revenue fluctuations, ensuring stability as the company moves toward its next major release cycle.
11 bit studiosMay 2025
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 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
Financial
Quarterly Report of 11 Bit Studios for Nine Months Ended 30 September 2024
11 bit studios achieved record-breaking financial performance during the first nine months of 2024, characterized by a 211% year-on-year revenue increase to PLN 106.6 million. This growth translated into a dramatic surge in net profit, which rose from PLN 1.35 million in the previous year to PLN 47.5 million. The primary catalyst for this expansion was the September launch of Frostpunk 2, which sold over 511,000 copies by the reporting date and generated nearly half of the period's total revenue. Financial results were further bolstered by a significant PLN 5.8 million IP Box tax relief settlement and strong performance from the United States market. The company’s balance sheet reflects a transition toward large-scale production, with the net carrying amount of completed development work rising from PLN 5.4 million to PLN 97.8 million. While operating activities generated PLN 27.3 million in cash, heavy investment in intangible assets and property resulted in a slight net decrease in total cash reserves to PLN 35.9 million. Trade receivables saw a substantial spike to PLN 48.5 million, largely due to a major contract with a single partner, while contract liabilities include advance payments from platforms like Microsoft for future game availability. Despite the success of the Frostpunk franchise, management is currently reassessing its broader publishing strategy following the underperformance of certain portfolio titles. This shift is evidenced by the decision to write down the investment estimate for Fool’s Theory to zero and a reduction in provisions for the 2021–2025 Incentive Scheme, as game delays make original financial targets less certain. Looking ahead to 2025, the company’s outlook remains centered on the postponed release of The Alters in the first quarter and the continued development of Project 8, alongside the ongoing monetization of its established back catalogue.
11 bit studiosNov 2024