Financial

Annual Report of 11 bit studios S.A. for 2011

1 June 201268 pages18,475 words

Summary

During the 2011 fiscal year, 11 bit studios S.A. successfully transitioned from a development-focused startup into a profitable global commercial entity. This transformation was primarily driven by the critical and commercial success of the Anomaly Warzone Earth series, which enabled the company to report a net profit of 1.29 million PLN. This represents a significant turnaround from the net loss of 231,199 PLN recorded in 2010. Net sales revenue surged by over 544% to 3.05 million PLN, characterized by a high-margin strategy where nearly 50% of sales were converted to profit. The company’s operations are heavily international, with 96% of product sales originating from foreign markets through digital distribution platforms such as Steam and the App Store. Consequently, the firm maintains a high exposure to currency fluctuations, as 80-100% of its revenue is denominated in USD, EUR, and GBP. To support its growth trajectory, the company utilized a Series D share issuance to raise capital, ending the year with a strengthened cash position of 1.30 million PLN and total assets exceeding 2.99 million PLN. These resources are being deployed to fund the simultaneous development of four new game series. Operational risks remain centered on the inherent unpredictability of consumer demand and a strategic dependency on major platform owners like Sony and Microsoft. To mitigate these factors, the company prioritizes diversification across open platforms and utilizes rigorous usability testing. Audited financial statements confirm that the firm is in a stable position with no threats to continued operations. Looking forward, the company has set ambitious growth targets, aiming for 12.7 million PLN in revenue by 2013 while maintaining its commitment to transparency standards as a listed entity on the NewConnect market.

Pages

View all

Citation

Generating citation...

Similar Documents

Financial

Annual Report of 11 bit studios S.A. for 2012

The 2012 fiscal year marked a period of significant financial expansion and strategic consolidation for 11 bit studios S.A., characterized by a 57% increase in net revenue to 4.8 million PLN and a net profit of 1.34 million PLN. This performance represents a robust recovery from the previous year's losses, driven by the release of eleven products, including Funky Smugglers, Sleepwalker’s Journey, and various ports of the Anomaly franchise. While revenues exceeded initial forecasts by 10%, net profit reached only 77% of projections due to the strategic decision to postpone the major release of Anomaly 2 into 2013. The company’s financial structure strengthened considerably over the period, with total assets growing from 2.99 million PLN to 7.34 million PLN. This growth was supported by successful Series D and E share issuances, notably involving a strategic investment from the AMPLICO pension fund, which helped raise over 3 million PLN in net financing. By the end of 2012, the company maintained a high equity-to-asset ratio of 94.2% and a strong cash position of 3.47 million PLN. Management prioritized organic growth over dividend payouts, noting that the internal value of the firm had increased 5.5-fold since its 2010 market debut. Operations were heavily export-oriented, with approximately 95% of sales revenue generated from foreign markets in USD, EUR, and GBP. This international focus necessitates active management of currency fluctuation risks and platform-specific challenges. To mitigate risks associated with closed ecosystems like Sony and Microsoft, the company emphasized cross-platform development for open systems such as PC and mobile. Despite facing a competitive labor market for experienced developers in Poland, the company intensified its game development activity, nearly doubling its work-in-progress inventories to 1.72 million PLN as it prepared for its 2013 release pipeline.

investment market-analysis europe+1

11 bit studiosApr 2013

Financial

Annual Report of 11 bit studios S.A. for 2021

11 bit studios S.A. maintained a robust financial and strategic position in 2021, despite a year-over-year decline in earnings driven by a lack of new product premieres. The company reported annual revenue of 70.12 million PLN and a net profit of 28.69 million PLN, down from 37.36 million PLN in 2020. Notwithstanding lower sales, the balance sheet strengthened significantly, with total assets rising to 219.5 million PLN and record financial assets reaching 107.41 million PLN. This stability was fueled by the sustained performance of the "back catalogue," including *Frostpunk* and *This War of Mine*, alongside effective utilization of the "IP Box" tax relief. The company is currently undergoing a major strategic transition from "Indie" developer to a larger-scale producer and publisher. To support this, 11 bit studios expanded its workforce to over 200 employees and increased R&D investment, with capitalized development costs for unfinished projects—specifically *Frostpunk 2*, *Dolly*, and *Project 8*—rising to 52.93 million PLN. All internal projects have migrated to Unreal Engine under a new licensing deal with Epic Games. Additionally, the company expanded its external footprint by acquiring a 40% stake in Fool’s Theory and committing 50 million PLN to its publishing pipeline through 2023. Geographically, the United States remains the dominant market, accounting for 76% of total revenue, with Steam serving as the primary distribution channel. Because 78% of revenue is denominated in USD while costs are largely in PLN, the company remains highly sensitive to currency volatility. Looking ahead, management has established an ambitious 2021–2025 incentive program targeting 656 million PLN in consolidated revenue, underpinned by a shift toward a multi-team structure capable of delivering annual releases. Operations remain centered in Poland, with the company maintaining high liquidity and self-financing capabilities to fund its upcoming production cycles.

investment mergers-acquisitions europe+2

11 bit studiosMar 2022

Financial

Annual Report of 11 bit studios S.A. for 2010

The inaugural fiscal period for 11 bit studios S.A., spanning from December 7, 2009, to December 31, 2010, was defined by the transition from a startup venture to a publicly traded entity on Poland’s NewConnect market. The primary focus of this period was the development of the company’s debut title, Anomaly Warzone Earth, and the establishment of a multi-platform distribution strategy. While the company reported a net loss of 231,199 PLN, this result reflects a pre-revenue production phase characterized by disciplined cost management and significant investment in work-in-progress assets, which totaled over 457,000 PLN by year-end. The financial structure was significantly bolstered through multiple share issuances, raising approximately 1.5 million PLN and increasing total equity to over 1.26 million PLN. This capital influx provided a high level of liquidity, evidenced by a current ratio of 20.6 and a year-end cash balance of 731,783 PLN. Despite negative profitability ratios typical of the early development cycle, an independent auditor issued an unqualified opinion, confirming the company’s stability and its ability to continue as a going concern. Founding shareholders retained a dominant 78.88% stake, ensuring leadership continuity during this foundational stage. Operational risks identified during this period include the high competition for experienced development talent in Poland and the challenges of navigating restrictive licensing and approval processes from major platform holders like Sony and Microsoft. To mitigate these, management implemented proprietary recruitment and training systems. Strategically, the company committed to transparency and corporate governance standards required by the NewConnect market, successfully validating its business model ahead of its formal commercial launch. This period established the necessary financial and operational infrastructure to support a growth strategy centered on high-quality, independent intellectual property.

investment mergers-acquisitions europe+2

11 bit studiosJun 2011

Financial

Annual Report of 11 bit studios S.A. for 2013

During the 2013 fiscal year, 11 bit studios S.A. achieved its third consecutive year of profitability, characterized by a strategic transition from a pure development house to a diversified global publisher and distributor. While net sales revenue grew by 28% year-over-year to 4.3 million PLN—with total revenues reaching 5.75 million PLN—net profit saw a moderate decline to approximately 1.01 million PLN. This decrease in margin was primarily driven by a 44.9% rise in operating costs, largely attributed to increased personnel expenses and the simultaneous development of three major titles, including the high-profile project This War of Mine and Anomaly Defenders. The company’s financial health remained robust, ending the year with 3.74 million PLN in cash reserves and total assets of 8.7 million PLN. A significant portion of these assets consisted of capitalized development costs and work-in-progress inventory, reflecting a heavy reinvestment of capital into future intellectual property. This internal funding capability allowed management to pursue 2014 operations without seeking external financing. To further stabilize its business model, the firm launched the "11 bit launchpad" publishing initiative and the "Games Republic" digital distribution platform, aiming to reduce reliance on third-party platforms and diversify revenue streams. Operating primarily in the global market, the company generated over 93% of its revenue from foreign sales, creating significant exposure to currency fluctuations, particularly the USD/PLN exchange rate. Other identified risks included the inherent unpredictability of consumer demand and the technical challenges of securing approvals for closed console platforms. To mitigate these, the firm focused on cross-platform development for PC and mobile while utilizing internal training systems to address the shortage of specialized talent in the Polish labor market. Independent audits confirmed the company’s strong liquidity and compliance with Polish accounting regulations, maintaining a transparent corporate governance profile on the NewConnect exchange.

investment mergers-acquisitions poland

11 bit studiosJun 2014

Financial

Annual Report of 11 bit studios S.A. for 2014

The 2014 fiscal year marked a transformative period for 11 bit studios S.A., characterized by record-breaking financial performance and a strategic expansion of its business model. The primary driver of this growth was the global success of the title This War of Mine, which recouped its production costs within two days of its November debut and propelled the company to its fourth consecutive year of profitability. Annual revenue surged by 210% to 17.68 million PLN, while net profit experienced a nearly tenfold increase to 9.24 million PLN. This performance resulted in a net return on equity of 119% and a significantly strengthened balance sheet, with total assets rising to 21.52 million PLN and short-term investments doubling to 7.6 million PLN. The company’s operations are heavily international, with foreign sales accounting for approximately 96% of total revenue. This global footprint introduces significant exposure to currency fluctuations, particularly as 80-90% of income is generated in USD. Beyond internal game development, the company diversified its revenue streams by launching the "11 bit launchpad" publishing initiative and the "Games Republic" digital distribution platform. While these new ventures face intense competition from crowdfunding and self-publishing trends, they represent a shift toward a multi-faceted gaming ecosystem. To support long-term growth, the company implemented a three-year incentive program for employees tied to consolidated revenue and income targets. Audited by Deloitte Polska, the financial statements confirm a robust cash position that eliminates the need for external financing in the immediate future. Strategic focus has shifted toward the mobile adaptation of flagship titles and the development of the upcoming project Industrial, which was rescheduled to 2016 to prioritize product quality. Despite the abandonment of two minor projects and the inherent risks of rising development budgets, the company maintained high standards of corporate governance and transparency on the NewConnect market, signaling a mature phase of corporate evolution following its initial debut period.

investment europe game-publishing+1

11 bit studiosJun 2015

Financial

Annual Report 11 Bit Studios S.A. for 2020

In 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.

investment monetization market-analysis+1

11 bit studiosApr 2021

Annual Report of 11 bit studios S.A. for 2011

Summary

Tags

Pages

Citation

Citation

Similar Documents

Annual Report of 11 bit studios S.A. for 2012

Annual Report of 11 bit studios S.A. for 2021

Annual Report of 11 bit studios S.A. for 2010

Annual Report of 11 bit studios S.A. for 2013

Annual Report of 11 bit studios S.A. for 2014

Annual Report 11 Bit Studios S.A. for 2020