Financial11 bit studios
Annual Report 11 Bit Studios S.A. for 2020
1 Apr 2021145 pages~288 min full read
11 bit studios achieved record financial performance in 2020 with 87.1 million PLN in revenue and a 57.5% year-over-year increase in net profit to 37.36 million PLN.
See it on page 2The company maintains a debt-free balance sheet with 107.7 million PLN in liquid assets, enabling full self-financing for its current development and publishing pipeline.
See it on page 111Core franchises *Frostpunk* and *This War of Mine* remain the primary revenue drivers, while the publishing division grew to account for 29% of total annual revenue.
See it on page 88Strategic operations are scaling toward larger-scale productions, evidenced by the development of three major proprietary projects (Project 8, Dolly, and Eleanor) and a transition to Unreal Engine.
See it on page 83The company utilized IP Box tax relief to achieve an effective tax rate of 8.09%, resulting in a high net profit margin of 42.9%.
See it on page 48The United States remains the dominant market, representing 77% of total sales, while the company manages risks related to foreign exchange volatility and competition for specialized labor.
See it on page 92A new 2021–2025 incentive program has been established for leadership and staff, tied to a cumulative revenue target of 656 million PLN.
See it on page 72In 2020, 11 bit studios S.A. achieved its strongest financial performance to date, characterized by record-breaking revenues of 87.1 million PLN and a net profit of 37.36 million PLN, representing a 57.5% year-over-year increase. These results were primarily driven by the sustained monetization of core intellectual properties, specifically the *Frostpunk* and *This War of Mine* franchises, alongside a growing contribution from the publishing division, which accounted for 29% of total revenue. The company successfully utilized the IP Box tax relief, significantly lowering its effective tax rate to 8.09% and further bolstering its net margin to 42.9%.
The company’s strategic focus shifted toward scaling operations and transitioning from indie-level projects to larger-scale productions. This evolution included expanding the internal pipeline to three major proprietary projects—Project 8, Dolly, and Eleanor—and adopting Unreal Engine for future development. To support this growth, the workforce expanded to over 170 employees, and the company moved to a new headquarters in Warsaw. Despite the global COVID-19 pandemic, the transition to remote work caused minimal disruption to production schedules or financial stability.
By the end of 2020, the financial position remained exceptionally robust, with total financial resources reaching a historic high of 107.7 million PLN and no debt. This liquidity allows for the full self-financing of current development and publishing expansions. Key corporate milestones included a leadership transition with Przemysław Marszał becoming President of the Board and the establishment of an ambitious 2021–2025 incentive program tied to cumulative revenue targets of 656 million PLN. While the United States remains the primary market, accounting for nearly 77% of sales, the company continues to manage risks associated with foreign exchange volatility and the competitive labor market for specialized developers.
