Financial11 bit studios
Quarterly Report of 11 Bit Studios for Nine Months Ended 30 September 2024
14 Nov 202455 pages~105 min full read
11 bit studios achieved a 211% year-on-year revenue increase to PLN 106.6 million and a net profit surge to PLN 47.5 million for the first nine months of 2024.
The September launch of Frostpunk 2 was the primary growth driver, selling over 511,000 copies and accounting for nearly 50% of the company's total revenue for the period.
The company is shifting its publishing strategy and reassessing its portfolio after the underperformance of certain titles, leading to a zero-value write-down of its investment in Fool’s Theory.
Capitalized development work grew significantly from PLN 5.4 million to PLN 97.8 million, reflecting a strategic transition toward large-scale production.
Trade receivables spiked to PLN 48.5 million due to a major contract with a single partner, while cash reserves decreased slightly to PLN 35.9 million due to heavy investment in intangible assets.
Management has reduced provisions for the 2021–2025 Incentive Scheme, citing uncertainty in meeting original financial targets due to game development delays.
Future growth is contingent on the Q1 2025 release of The Alters, the development of Project 8, and the continued monetization of the existing back catalogue.
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.
