Financial11 bit studios
Quarterly Report of 11 Bit Studios for the Three Months Ended 31 March 2025
15 May 202551 pages~95 min full read
11 bit studios reported Q1 2025 revenue of PLN 17.5 million, a 14.2% year-on-year increase driven by the Frostpunk franchise and strong U.S. demand, which accounted for over 75% of total sales.
See it on page 47The company recorded a net loss of PLN 6.37 million, primarily due to a fivefold increase in depreciation and amortization, higher royalty obligations, and PLN 4.25 million in non-cash finance costs from currency fluctuations.
See it on page 47The company maintains a stable financial position with PLN 69.5 million in cash and cash equivalents and total assets of PLN 255.4 million, with intangible assets rising to PLN 134.2 million due to ongoing development.
See it on page 4Management has optimized costs by canceling 'Project 8' and reassessing the 2021–2025 Incentive Scheme, as the company no longer expects to meet its original five-year financial targets.
See it on page 21The 2025 release pipeline includes 'The Alters' in June and 'Moonlighter 2' in the summer, followed by 'Frostpunk 1886' scheduled for 2027.
See it on page 2The company continues to utilize the 'IP Box' tax relief, which allows for a preferential 5% corporate income tax rate on qualifying revenues.
See it on page 23During 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.
