Annual Report of 11 bit studios S.A. for 2016

In 2016, 11 bit studios S.A. achieved its strongest historical financial performance, characterized by a 16.6% increase in consolidated revenue to 27.02 million PLN and a net profit of 12.93 million PLN. This growth was achieved without a major new title release, driven instead by the sustained monetization of This War of Mine across consoles and mobile platforms. Geographically, the company remains heavily export-oriented, with 98.6% of revenue generated outside Poland. The United States remains the primary market at 77.8% of sales, while China has emerged as the second-largest region.

The Group maintained a robust and debt-free balance sheet, ending the year with 29.11 million PLN in cash and equivalents. This financial stability allowed for a significant increase in R&D investment, which doubled to 5.4 million PLN. These funds were directed toward the development of the high-budget title Frostpunk, the creation of a second internal development team, and the expansion of the 11 bit publishing division. Strategically, the company transitioned toward a multi-project model while discontinuing underperforming assets, specifically the Games Republic distribution platform.

Operating under International Financial Reporting Standards (IFRS), the Group identified currency fluctuation as a primary risk factor, as approximately 90% of revenues are denominated in USD. Other noted strategic risks include the intense competition for indie publishing projects and the challenges of recruiting specialized talent. Despite these factors, the company’s market valuation saw significant appreciation, with its stock price increasing by 108% and gaining inclusion in the sWIG80 index. Governance remained stable, with the reappointment of the existing Management and Supervisory Boards to new three-year terms to oversee the next phase of the company's expansion.