Financial11 bit studios
Annual Report of 11 bit studios S.A. for 2014
12 Jun 201567 pages~106 min full read
11 bit studios achieved record financial growth in 2014, with annual revenue increasing 210% to 17.68 million PLN and net profit rising nearly tenfold to 9.24 million PLN.
The release of 'This War of Mine' in November 2014 was the primary growth driver, recouping all production costs within two days of its debut.
The company maintains a highly international business model, with 96% of total revenue generated from foreign markets and 80-90% of income denominated in USD.
Financial stability is high, with a net return on equity of 119%, total assets of 21.52 million PLN, and sufficient cash reserves to eliminate the need for external financing.
The company diversified its business model beyond internal development by launching the '11 bit launchpad' publishing initiative and the 'Games Republic' digital distribution platform.
Strategic development plans include prioritizing mobile adaptations and rescheduling the project 'Industrial' to 2016 to ensure product quality.
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.
