Financial11 bit studios
Annual Report of 11 bit studios S.A. for 2013
1 Jun 201470 pages~90 min full read
11 bit studios achieved its third consecutive year of profitability in 2013, with net sales revenue growing 28% year-over-year to 4.3 million PLN.
Net profit declined to approximately 1.01 million PLN as operating costs rose by 44.9%, driven by increased personnel expenses and the simultaneous development of three major titles including This War of Mine and Anomaly Defenders.
The company maintained a strong financial position with 3.74 million PLN in cash reserves and total assets of 8.7 million PLN, allowing for self-funded operations heading into 2014.
Over 93% of the company's revenue was generated from foreign markets, creating significant exposure to USD/PLN currency fluctuations.
To diversify revenue and reduce reliance on third-party platforms, the firm launched the '11 bit launchpad' publishing initiative and the 'Games Republic' digital distribution platform.
Management mitigated labor market risks by implementing internal training systems to address the shortage of specialized talent in Poland.
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.
