Financial11 bit studios
Quarterly Report of 11 Bit Studios S.A. for Nine Months Ended September 30th 2022
1 Nov 202257 pages~98 min full read
11 bit studios reported a 21% year-on-year revenue increase to PLN 59.58 million and a net profit of PLN 19.97 million for the first nine months of 2022.
See it on page 2Third-party publishing revenue grew to 39% of the total, up from 25% the previous year, driven by titles such as Moonlighter and Children of Morta.
See it on page 55R&D spending surged by over 65% to PLN 34.26 million, funding the development of three proprietary titles—Frostpunk 2, The Alters, and Project 8—and four publishing projects.
See it on page 3The company maintains a strong financial position with over PLN 102 million in cash and current assets, supporting an ambitious goal of PLN 656 million in cumulative revenue by 2025.
See it on page 39Strategic expansion includes equity stakes in Fool’s Theory Sp. z o.o. (40%) and Starward Industries S.A. to bolster the firm's multi-project development model.
See it on page 56Profitability was supported by an 11.43% effective tax rate via the IP Box relief program and currency exchange gains, despite a PLN 3.66 million charitable donation to the Ukrainian Red Cross.
See it on page 27The United States remains the company's largest market, accounting for PLN 46.37 million of total revenue.
See it on page 22During 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.
