Financial11 bit studios
Quarterly Report of 11 Bit Studios S.A. for the Nine Months Ended September 30th 2021
1 Nov 202151 pages~90 min full read
11 bit studios is investing PLN 110 million into three major internal projects: Frostpunk 2, Project 8, and Dolly.
The company has allocated PLN 80 million to expand its third-party publishing division through 2023, aiming for a consistent annual release cycle of one proprietary game and multiple external titles.
Financial performance for the first nine months of 2021 showed a year-over-year decline, with revenue at PLN 49.2 million and net profit at PLN 17.4 million due to the aging of the existing portfolio.
The studio maintains a strong liquidity position with PLN 121.5 million in financial assets and cash reserves of PLN 38.1 million.
Workforce expansion to 192 employees and a migration to Unreal Engine led to a 74.6% increase in salary expenses during the period.
Total assets grew by 9.8% to PLN 204.7 million, supported by a strategy to diversify the Frostpunk IP into mobile, board game, and literary markets.
During the first nine months of 2021, 11 bit studios S.A. focused on a strategic transition toward a multi-team production model and the expansion of its publishing pipeline. Financial performance for this period reflected a transitional phase, with revenue reaching PLN 49.2 million and net profit totaling PLN 17.4 million. These figures represent a year-over-year decline from 2020, driven by a high comparative base and the natural aging of the existing game portfolio, which includes established titles such as Frostpunk, Moonlighter, and Children of Morta. Despite lower current earnings, the company maintained a robust liquidity position, ending the period with PLN 121.5 million in financial assets and a significant increase in cash reserves to PLN 38.1 million.
Operational efforts are heavily concentrated on future growth, with approximately PLN 110 million committed to the development of three major internal projects: Frostpunk 2, Project 8, and Dolly. To support these ambitions, the studio has migrated to Unreal Engine and expanded its workforce to 192 employees, contributing to a 74.6% increase in salary expenses. The company is also scaling its publishing division, earmarking PLN 80 million for third-party titles through 2023. This strategy aims to establish a consistent release cycle of one proprietary game and multiple third-party titles annually.
The financial structure remains stable, characterized by a 9.8% increase in total assets to PLN 204.7 million and a reduction in total liabilities. While the abandonment of the internal Liquid Engine resulted in a minor impairment loss, the valuation of ongoing projects remains secure. Beyond core development, the studio is diversifying the Frostpunk intellectual property into mobile, board game, and literary markets while actively seeking minority acquisitions to bolster its long-term development and publishing capabilities.
