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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.
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.
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.
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.
11 bit studiosJun 2014