Financial11 bit studios
Annual Report 11 Bit Studios for 2022
1 Mar 2023139 pages~302 min full read
11 bit studios reported 74.2 million PLN in 2022 revenue, a 5.8% year-over-year increase, despite a 20.2% decline in net profit to 22.9 million PLN due to rising operational costs and a 3.66 million PLN donation to the Ukrainian Red Cross.
See it on page 78The company is heavily prioritizing long-term growth, evidenced by a 69% surge in intangible assets to 99.9 million PLN and a 130 million PLN combined production budget for internal titles *Frostpunk 2*, *The Alters*, and *Project 8*.
See it on page 91The publishing division reached a record 38% revenue share, bolstered by strategic equity stakes in external partners, including 40% of Fool’s Theory and 5.18% of Starward Industries.
See it on page 87The studio expanded its workforce by 30% to 245 employees to support a target release cadence of one internal and three to four external titles annually.
See it on page 2The United States remains the company's dominant market, accounting for 77.4% of total sales.
See it on page 33The company maintains a conservative financial position with a 92% equity-to-asset ratio and an 8.98% leverage ratio, opting to reinvest 2021 profits into supplementary capital rather than issuing dividends.
See it on page 60In 2022, Warsaw-based 11 bit studios S.A. demonstrated financial resilience and strategic expansion despite a 4.3% contraction in the global gaming market. The company reported revenues of 74.2 million PLN, a 5.8% year-over-year increase driven by strong back-catalog performance and a record 38% revenue share from its publishing division. While net profit decreased by 20.2% to 22.9 million PLN—largely due to rising operating costs, increased payroll, and a significant 3.66 million PLN charitable donation to the Ukrainian Red Cross—the studio outperformed internal budget expectations and maintained a robust equity-to-asset ratio of 92%.
The studio’s strategic focus shifted toward a long-term production pipeline, with intangible assets surging 69% to 99.9 million PLN. This growth reflects heavy investment in three major internal titles—*Frostpunk 2*, *The Alters*, and *Project 8*—with a combined production budget of approximately 130 million PLN. Simultaneously, the company expanded its publishing reach by acquiring a 40% stake in Fool’s Theory and a 5.18% stake in Starward Industries, supporting upcoming external releases like *The Invincible* and *The Thaumaturge*. Geographically, the United States remains the primary market, accounting for 77.4% of total sales.
Operating under IFRS standards, the company utilized the IP Box tax relief to maintain an effective tax rate of 15.93% and opted to allocate its 2021 profits to supplementary capital rather than dividends to self-finance future growth. To support this scaling, the workforce grew by 30% to 245 employees, managed under a new hybrid work model. While the company currently lacks formal ESG and diversity policies, it maintains high liquidity and a conservative leverage ratio of 8.98%, positioning itself to release one internal and three to four external titles annually.
