Financial11 bit studios
Annual Report 11 bit Studios S.A. for 2017
26 Mar 201874 pages~274 min full read
11 bit studios reported 19.15 million PLN in annual revenue and 3.42 million PLN in net profit for 2017, reflecting a decline due to the aging of 'This War of Mine' and the postponement of 'Frostpunk' to 2018.
The company incurred 3.4 million PLN in currency exchange losses caused by the strengthening of the Polish złoty against the USD, though it maintained a strong liquidity position with over 31 million PLN in cash and zero bank debt.
The firm divested its subsidiary Games Republic Limited in April 2017 to focus exclusively on its internal 'meaningful entertainment' development model and its growing publishing division.
The publishing division, which includes titles like 'Beat Cop' and 'Tower 57', successfully generated over 10% of the company's total revenue in 2017.
Approximately 97% of the company's revenue was generated through international exports via digital platforms such as Steam, Apple, and Google.
Management implemented a 2017–2019 incentive program targeting a cumulative gross profit of 71.2 million PLN to align internal scaling with financial performance.
The company invested 10 million PLN into the development of 'Frostpunk' and initiated a new project, 'Project 8', as part of its strategy to position 2018 as a breakthrough year.
In 2017, 11 bit studios S.A. underwent a strategic transition, focusing on its core multiplatform video game production and publishing business. The company reported annual sales revenue of 19.15 million PLN and a net profit of 3.42 million PLN, representing a decline from 2016 levels. This financial performance was primarily driven by the aging of the flagship title *This War of Mine*, the strategic postponement of the *Frostpunk* release to 2018, and significant currency exchange losses totaling 3.4 million PLN due to the strengthening of the Polish złoty against the USD. Despite lower profits, the company maintained a robust liquidity position with over 31 million PLN in cash resources and no bank debt.
A major corporate milestone was the dissolution of the Capital Group through the sale of the subsidiary Games Republic Limited in April 2017. This divestment allowed the company to operate as a standalone entity and concentrate resources on its "meaningful entertainment" model. This strategy involves a dual-team internal development structure—highlighted by the 10 million PLN budget for *Frostpunk* and the initiation of "Project 8"—alongside a growing publishing division. The publishing arm, featuring titles such as *Beat Cop* and *Tower 57*, successfully contributed over 10% of total revenue during the period.
Operating primarily in global digital markets, the company generated approximately 97% of its revenue from exports via platforms like Steam, Apple, and Google. To mitigate the inherent risks of this international exposure, management reduced foreign currency holdings and implemented a new 2017–2019 incentive program targeting a cumulative gross profit of 71.2 million PLN. Throughout this period of internal scaling and portfolio expansion, the company maintained its commitment to corporate social responsibility, donating over 485,000 PLN to the War Child foundation. Management concludes that the investments made in 2017 position 2018 as a breakthrough year for the studio.
