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.